NSW Corrective Services has refused to foot the bill for Ivan Milat's cremation, prompting his brother to demand his body be dropped back at the jail for "them to sort".
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Bill Milat said his brother's final wish was that he "not pay a cent" for the funeral and said he would be honouring that wish.
In a letter dated October 24, Milat, describing himself as "pretty crook", said: "Please don't pay for any funeral service or contribute in any way. Corrective Services NSW to fund it all, a pauper burial or whatever is suitable.
"I have advised the Commissioner of Corrective Services NSW of my wishes."
Bill said the arrangement was that the Long Bay Jail chaplain "would take care of everything on our behalf".
"The $2000 to be contributed by Correctives was going to cover the cremation," he said.
"But because of all the media coverage and the public outrage that's not going to happen any more.
"This morning (Tuesday) the chaplain has rung us up and says Corrective Services has withdrawn that and then he said 'What do you want to do?'"
Bill was adamant he would honor the wishes of his 74-year-old brother he called "Mac" - the man convicted of murdering seven backpackers in the Belanglo State Forest.
"Mac's last wishes were that we don't pay for anything so we are sticking to that and that's it," Bill said.
"So I told him when they finish at the Coroner's Court, stick him back in the car and take him back to Long Bay and they can decide what they want to do.
"That's up to you."
Milat said in the letter that he wanted to leave all the property he had, including funds in his prison account and legal trial and appeal review documents, to Bill.
He acknowledged that this might not be considered a true will, or legally-binding document, however he wanted his intention known that Bill was to have everything he owned.
"Keep this letter Bill, show it to your solicitor, that you my sole beneficiary," he said.
"Please don't pay for any funeral service or contribute in any way. Corrective Services NSW to fund it all, a pauper burial or whatever is suitable.
"I have advised the Commissioner of Corrective Services NSW of my wishes."
Milat signed off for the last time reiterating what he has been saying since his trial in 1996 where he was convicted of seven counts of murder. "I am innocent of the crimes convicted of."
Bill and Carol opened the letter on Sunday a few hours after hearing the 74-year-old had lost his battle with cancer.
"We opened the letter we didn't know what was going to be in the letter. He says he's innocent and we still believe him," Carol said.
"I can't go along with the media saying 'oh he's guilty, he's guilty he must be because they are all saying he's guilty'."
Carol and Bill have been fiercely supportive of Ivan, known in the family as "Mac" since he was first charged with the brutal murders of the seven young travellers.
"It's called the Hitler syndrome," Bill said on Monday night.
"You say it long enough and big enough and it becomes the truth."
A Corrective Services NSW spokeswoman told the Mercury on Tuesday that "under no circumstances" would Corrective Services NSW be paying for Milat's funeral.
"In some cases, Corrective Services NSW can provide families of inmates that have died in custody with a subsidy, paid to the funeral director, to assist with funeral costs," the spokeswoman said.
"That will definitely not be happening in this case."
Milat, 74, who had been in prison since 1994, died at Long Bay Hospital at 4.07am on Sunday, Corrective Services NSW said.
Milat had been undergoing chemotherapy since being diagnosed with oesophagus and stomach cancer in May.
Corrections Minister Anthony Roberts on Sunday said Milat "was sentenced to die in jail and he was going to die in jail".
"Both the Commissioner and I were of the same opinion that he shouldn't be taking up a precious public hospital bed," Mr Roberts said in a statement.
Milat was convicted of killing British backpackers Carolyn Clarke, 21 and Joanne Walters, 22, Melbourne couple James Gibson and Deborah Everist, both 19, and German backpackers Simone Schmidl, 20, Gabor Neugebauer, 21, and Anja Habschied, 20.
