As a financial adviser, the two main issues we have to deal with are “Living too long” and “Dying too soon”. No one likes to talk about the three Ds, but while everyone should hope for the best, they should plan for the worst. It’s a smart show of care for older relatives, those living abroad and not just those with grey hair themselves today!
Are you the only person who knows the details of your bank accounts, pension, and more? Leaving the process to family & dependents to search out these facts can be extremely time-consuming and difficult. Putting all the crucial information somewhere secure so it can guide whoever takes over is a very useful exercise. A ‘LifeBook’ or even Fact Find can help to list these things in one place. Copies are available on request.
Ensure you have an up-to-date will and don’t leave an added financial nightmare for those you love. Making a will is on the list for the most important preparations any of us can make, especially when we’re in a comfort zone of being perfectly healthy. There are several key reasons for this. Firstly, it can be called upon very unexpectedly and with a will in order, it’ll be your clear instructions of all your wishes (rather than the state enforcing by default). It can help reduce additional family turmoil. Remember, if you aren’t married or in a civil partnership, your partner won’t inherit anything automatically.
When a loved one dies, having to make funeral decisions is hard enough. Being overseas makes it especially difficult for a family dealing with what you would have wished for as well as the financial implications and costs. If you think a f irst-class cabin flight is expensive, check the cost of a casket space.
You can leave pets to others in your Will (check they’re happy to look after them first), but if you don’t have a loved one who would be able to take them in, the RSPCA (UK) offers a free Home for Life service.
The fact you’re reading this means it’s likely you make a good share of your household’s financial decisions. Yet if you died, would your loved ones know which date the mortgage/rent’s due, when your car insurance runs out and where all your important details are?
Socials & photos are an asset too. There’s no specific law on this, but you can grant individuals access to ‘digital assets’ in your Will. Social media, photos, videos, emails and so on. Some have had to take legal action when a lost loved one hadn’t specified access, so it’s worth doing the basics.
Thinking and talking about what would happen if we or our parents lose our faculties might be premature, but we need to consider how much worse the situation would be if we became incapacitated suddenly without the safety net of prior preparation.
If you should lose your faculties unexpectedly, don’t assume relatives can walk into the bank and access your money, not even to pay for your care, or the mortgage. This is what a Lasting Power of Attorney (LPA/PoA) protects. The financial issues are often sudden, urgent and create big questions. Who can access your funds to pay for necessities? Who’ll ensure your money is still working for you if you’re no longer capable? Without a PoA, it’s very troublesome for your loved ones as they would need to apply via the Court of Protection.
Don’t leave life insurance until it’s too late. If you leave it until you are much older, it’s likely to be more expensive and would your health still allow it? If you’re younger, life insurance is an essential consideration, especially if you have children. Of course, this is the one policy you hope won’t pay out, but it provides an essential safety net and replacement for the income that’s lost while still supporting them, in your absence, until they become independent adults.
When it comes to divorce, don’t accidentally leave your pension or old life insurance policy to your ex-spouse. You can not put it in your Will. Your private or company pension provider / trustees decide what to do with it. An expression of wishes (or nomination) form tells them your preference. It’s not binding, but usually does the job. ve beneficiaries listed that need updating. The policy may also just be out of date.
To request your free Life Book, please email or add me on WeChat via the QR code above. Much money and distress can be saved with a little time and forethought.
