Death - how to make it ‘easier’ for those left behind #057

A practical guide

Unintentionally this has turned into a death trilogy! This is part 3.

Over the last 2 weeks I’ve written about why we don’t talk about death and how to talk about death. So I figured I ought cover what needs to be thought about and done to be well prepared for death. Either for you or others in your life. As an act of love and respect.

Some of these could be a blog or mini-series in themselves but for now, let’s look at the headlines.

1. Wills

On reaching a certain age, level of assets or having children we all need a will. Yes the law of intestacy¹ exists but for many, particularly if not married or in a civil partnership, it is a blunt instrument which is unlikely to reflect your wishes.

Will writing kits exist for the most straightforward circumstances however, I’d recommend professional advice from a lawyer or will writer particularly if any of these circumstances apply:

· You own property with someone you are not married to.

· You have children with someone you are not married to.

· You are married and have children from an earlier relationship or marriage.

· You have a business.

Contrary to what many people think, there is no such thing as ‘Common Law’ status for those in long term relationships who are not married or Civil Partnered.

Think carefully about your will’s executors (and guardians if children are involved). Each of these roles carry a raft of responsibilities.

2. Letter of wishes

I love a letter of wishes. Think of it as the human side of the legal document that is your will. A letter of wishes directs your executors. It can cover the distribution of money, assets, personal belongings, charitable donations and funeral wishes. I have a very simple will which refers my executors to my letter of wishes. A document I can easily review and update, without necessarily rewriting my will as my circumstances evolve.

3. Pension and death in service nominations

Most of us will have a pension of some sort and if you are still working death in service (a form of life insurance from your employer). The pension provider and your employer need to know who you want to receive these assets if you die. This may be your partner or kids but sometimes there are advantages, both from a tax and control perspective, of nominating a trust. However, it is important to note that from April 2027 pension death benefits may be subject to tax – they are currently tax free².

4. Trusts

Trusts are beyond the scope of this blog suffice to say, if you have one or are a beneficiary of one, make sure the trustees remain fit, well and capable of their trustee duties.

5. Gifts

Keep a record of any gifts you make to kids, family and or friends from capital (as opposed to income) over the last 7 years (on a rolling basis). On death, your executors need to declare this information to HMRC to calculate if Inheritance Tax (IHT) is due. Your executors won’t thank you if they have to crawl over your last 7 years of bank statements. I’ll talk about gifts out of income another time.

6. The ‘what’s what’ guide – financial

Make a detailed record of your financial assets. Don’t forget bank accounts, ISAs, investments, individual shares, cryptocurrency, property, pensions, life insurance, loans, mortgages, investment bonds, endowments etc. Include provider details, account numbers and passwords. Don’t forget details of your utility providers and various insurers (car, contents, travel etc). And if you have a safe, the combination number!

7. The ‘what’s what’ guide – practical

I recall a client whose super organised brother had all of the financial stuff nailed. Except he’d forgotten the practical matters of where he kept the key for the shed, who would look after the dog and the quirks of the heating system. The important daily living stuff!

8. Digital assets

We all have digital assets in some shape of form. Even my mum has online banking, bills and of course Facebook. Not to mention her photos held in the iCloud.

Keep clear records of your accounts and passwords and where possible nominate someone to be able to direct these accounts on death. I use a password manager called Last Pass (others are available), meaning I don’t have to remember my passwords and allows an emergency contact if needed. Don’t forget the password for your computer!

I recall the utter frustration my late business partner’s wife faced trying to close his Twitter account to the extent she gave up. He still pops up in my feed from time to time (well, before I closed my Twitter account obvs…).

This is a helpful overview of digital assets from the BBC.

9. Funeral wishes

Those we leave behind want to know how you would like to be remembered to make sure they honour your wishes. The more detail you can provide the better. If possible turn it into a family conversation. This knowledge really does help those making the arrangements in this acute period of shock and grief.

For some it’s a church service, a burial or a crematorium. For others it’s a humanist service with songs they have loved or a simple cremation with close family only. Some want a full blown party (and fancy dress is becoming a thing!). Others a motorbike motorcade. Make your wishes known.

10. Who needs to know?

There are of course ‘official’ notifications which are detailed on the government website including the ‘Tell us Once’ service.

But I’m thinking of friends and maybe more distant family. Make it easy for your family and friends to contact people by leaving up to date contact details.

And, most importantly, if you have one, the details of your Financial Planner. Many client’s would tell me I was ‘the number on the fridge’.

A good financial planner will be able to deal with and coordinate much of the financial and legal matters for you.

Action

This can feel like a lot – practically as well as emotionally. So this is how I recommend you proceed:

• Use this blog as a guide to the key actions.

• Don’t feel like you need to eat this elephant all in one go. Make a plan and tick off your actions as you go.

• Seek help with the legal and financial matters.

• And most importantly, tell your family or friends what you are doing, why you are making the decisions you are and where to find your documents. They will thank you.

You

As ever I’m interested in you. How have you prepared for your death practically and financially? What have I missed? What did you find most difficult? Or have you witnessed the impact of death when preparations have not been made – what happened?

Do drop me a line, I’d love to hear and learn from you.

And remember, none of us know when we might die, what are you waiting for to get started with your guide for those you leave behind?

Until next week and I promise a more uplifting theme,

Ruth x

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1. The Law of Intestacy determines who will inherit if someone dies without a will. Find details here.

2. The changes to pension death benefits was announced in the 2024 Autumn Budget Statement. We are awaiting HMRC’s clarification of the new rules so proceed with caution at this stage. It is proposed that pension death benefits are included within an individual’s estate for Inheritance Tax (IHT) purposes.