Thinking about death is never easy, and it’s something we prefer to avoid but planning for the inevitable can relieve a lot of pressure and leave you safe in the knowledge that should the worst happen, your family and friends won’t have to face any complications or difficult decisions. There are a few key steps you should follow in order to have your affairs in order for when you pass.
Make a Will
Making a will isn’t the most joyous way to spend an evening but it’s a relatively quick process and there is plenty of advice online to help you every step of the way. By making a will you decide how you want your assets divvied up, who your house will be left to and if you have any children you can also name a guardian. The same goes for your pets, if the worst were to happen it’s nice to know there is a plan of action ready so that they won’t go uncared for. Having a will in place makes the process a lot quicker and easier for your family and friends, however morbid it may feel.
Buy Life Insurance
If you haven’t already, it’s a good idea to have a look at taking out a life insurance policy. If your death would leave a financial blow, it’s a necessary policy to have in place. If you have substantial debts, this is another good reason to take out life insurance as you don’t want those to fall onto someone else’s shoulders. You should take out a policy for as long as your loved ones are financially dependent on you, whether that be 10, 20 or 30 years. Lifetime policies are also available if you feel this is necessary.
Appoint an Executor
In order to ensure your assets are being divided up as they should, it’s best to appoint an executor to oversee the process. You can choose up to four executors, or you may prefer to have just one. You can select your spouse, a younger sibling, close friend or relative. If you’d prefer to have an external executor you can seek the help of a solicitor or public trustee but it may incur additional fees. After your death, your executor will be responsible for collecting all assets in your estate, calculating the value of your estate, paying off any debts, splitting your estate based on your wishes and keeping of a record of any money going in and out of your estate, they will also need to apply for a grant of probate here. Keeping your financial records and affairs up to date and well organised will help your executor when the time comes to ensure the process runs smoothly.
Seek Financial Advice
Many people with savings or investments worth over £325,000 will seek the help of a financial adviso as to avoid inheritance tax being deducted from your estate when you pass on. Your financial advisor will offer advice and the best course of action when it comes to your finances and they may suggest that you set up a trust or gift funds in order to avoid such taxes. A financial advisor will help you to better understand your situation and make decisions based on solid advice that will later benefit your family or friends who are set to receive a portion of your assets.