Planning for the end is not about being morbid. It's about making crucial preparations to lessen the impact when it happens.
We have listed below some checks to help you plan ahead.
Financial considerations
Financial issues can cause unnecessary stress when someone dies.
Some issues worth considering are:
- a financial factsheet - putting all the crucial info somewhere secure so it can be taken over by someone else is helpful
- inheritance tax planning - this needs doing early, especially if your estate's likely to have inheritance tax issues (for example joint assets, including properties worth over £650,000)
- a power of attorney - for when you can not make decisions for yourself anymore, arrange who you would want to take over your finances - it's easier to arrange a power of attorney while you're still able and aware
Your will
Making a will and ensuring it's up-to-date is the most important preparation any of us can make, even if you are perfectly healthy.
There are some key reasons for this:
- it will be clear who looks after your estate and where any significant assets go
- it saves your relatives from having to make difficult financial decisions without guidance
- it can ensure your partner is provided for - if you are not married or in a civil partnership, your partner won’t automatically inherit your assets
Don't forget to let a close relative or friend know where your will is kept, so that they'll be able to find it without any additional hassle at a difficult time.
Once you've created a will, it's usually stored with a solicitor and you get a copy. Most charge a small fee for this.
Your dependents
If you have children under 18 or anyone else who depends on you, make sure you discuss with your partner and family who would look after them after you have gone.
This is a tough conversation, but still an important consideration.
Your pets
As well as your dependents, you should also consider who will look after your pets.
You can leave pets to others in your will, but if you don't have a loved one who would be able to take them in, the RSPCA offers a free home for life service (rspca.org.uk).
If you are signed up for this service, the RSPCA will try to find a new home for your pets if you pass away. You will need to amend your will for this.
Inheritance tax
When you die, the government assesses the worth of your estate (everything you own) from cash and investments, to property and business.
If you don't do any planning for this, many can expect 40% of this to go in tax.
There are lots of ways to deal with this, including giving gifts at least seven years before you die, leaving cash to charity, and more.
Planning your funeral
When a loved one dies, having to make funeral decisions with no guidance can be harrowing at an already painful time.
Making a few decisions on your own funeral now helps your relatives after your death.
Things to discuss include:
- whether you'd rather be buried, cremated, or even have a 'green' funeral
- any music, flowers, religious rites and readings
Living will
'Living will' is a term often used to refer to an advance decision under the Mental Capacity Act 2005.
An advance decision is a legal statement that lets you say if you don't want certain types of medical treatment in certain situations, if you lose capacity in the future.
Advance decisions are free to make, and you don't need to go through a solicitor.
You do need to be over 18, and have mental capacity when you make it, for it to be valid.
To make an advance decision, make a written statement of any treatments you'd like to refuse and in which circumstances, giving as much detail as possible.
Someone else can write it if you're unable to. You should also sign it and date it (someone else can do this while you're present if you can't). A witness should sign and date it too.
Life insurance
If you're older, life insurance is likely to be very expensive - plus your children may be past the age of relying on you anyway. If you're younger, life insurance is well worth considering if you have children.
Level term life insurance is one of the cheapest ways to protect your family's income if you die, because it will pay a fixed amount to your dependents.
The two key words are:
Term: This means you only get a payout if you die within a fixed term, for example, 18 years.
Level: This means the payout you get is always at a set amount. So level term assurance guarantees a lump sum payout upon death within a fixed time, for example, £150,000 if you die within the next 18 years.
Extra help and support
If you're planning for the end of life, do not feel you are alone - help is available and make sure you seek it out.
It's a daunting task, so ask your family and friends for support if you need it.
If you already have a solicitor, they should be able to help with big financial decisions.
There are several useful organisations that can help, including:
To find more about local support organisations and further details on some of the points mentioned above, please see our Health and Wellbeing - End Well page.
Credits - moneysavingexpert.com