Death planning: How important is it and what should you know?
Mike Davis, Founder & Managing Director of My Probate Partner
Thinking about life ending can be difficult – many tend not to think about it until we don’t have a choice. Death remains a topic often shrouded in discomfort, avoidance and taboo. However, planning for the inevitable can be an act of wisdom and compassion, supporting those we leave behind in perhaps their greatest moment of need.
Death can cause financial tragedies as well as grief. For this reason, planning for death isn’t about being morbid. Instead, it’s about making crucial preparations, financial and otherwise, to lessen the impact when it happens.
By taking a few simple steps, we can eliminate a lot of future stress for our loved ones, whilst making considerable cost savings.
Speak about your wishes
The mental incapacity or death of a loved one is hard enough to deal with, but the financial and bureaucratic complications that often come with it can add an unnecessary blow to the pain of it all. Whether it’s you who wants to avoid the subject, or your loved ones who’d rather not face it, it’s certainly not something you should put off.
It can be immensely comforting for families to know that they’ve made the right decision regarding subjects such as end of life care, funeral arrangements and the distribution of assets, however, they can only know this for sure if you tell them. After approaching these kinds of discussions, people often report the lifting of an invisible burden that they weren’t even aware was there.
Maintain an up-to-date Will
Having a well-drafted Will is essential as it serves as a roadmap for the management and distribution of assets, including money, property, possessions and investments – otherwise known as your estate. Clearly outlining your wishes and communicating them effectively can avoid any extra stress for your family, mitigating any potential fallouts or disagreements about personal possessions and money.
Furthermore, if you have more than £36,000 and you die without a Will, it will almost certainly add avoidable stress and cost to the after-death process as there are additional steps required. Wills are not costly to obtain and can be drafted by a solicitor or even online! Unless you know what you’re doing, a homemade Will can be a false economy as it may result in an extra court process to make it valid if it isn’t signed correctly, or it may even not be usable at all.
Get to grips with Probate
The ‘Probate’ process generally refers to the closing down of someone’s financial, legal and tax affairs after they die. This process involves notifying various organisations of the death, releasing the assets, paying any debts and taxes, and distributing inheritance.
In approximately 50% of deaths, there is a court process required to gain the authority required to access the assets. A special document is issued called a ‘Grant of Probate’ – or ‘Grant of Confirmation’ in Scotland. In Scotland, an inventory of the assets with their date of death values must be submitted to the local Sheriff Court to obtain this document.
Probate, or Confirmation, is not always mandatory and is only necessary to deal with an asset if an organisation/body – such as a bank – requires it before they will let an executor deal with an account or asset. If there is a property, then Probate may also be needed to change the name on the title deeds.
The responsibility of obtaining Probate or Confirmation falls on the person nominated in the Will (the ‘executor’) or a close family member in the absence of a Will, but they can enlist the help of a probate support service or a solicitor if they wish.
Appoint an ‘executor’ and make a list
Appointing an executor in a Will is a pivotal decision. This individual oversees the Probate process, ensuring your wishes are carried out. For this reason, it’s best to choose someone you trust, who is also reliable and organised. You can appoint a solicitor if you prefer, but they will charge a considerable amount of money to manage the process.
Another helpful step is to make a list of all the companies you have a financial relationship with, as this will reduce the investigation work required after you’re gone.
Legal support vs ‘doing it yourself’
In most cases, executors can do Probate themselves. However, if there is no Will in place, and the gross estate is worth more than £250,000 – except when there is a surviving spouse that inherits the entire estate – you will need to enlist a lawyer to handle the process.
The majority of lawyers charge high fees for their services, and multiple delays can be incurred due to a lack of efficiency and the large caseloads they carry.
An alternative exists in the form of dedicated Probate support services which provide a similar value to a lawyer in terms of knowledge and experience, but for a fraction of the cost. This option works for straightforward situations (which make up around 90% of cases) and are designed to help executors navigate all the challenges and pitfalls of going through the Probate process.
Think beyond finances
Confirming all funeral arrangements such as music and flower choices, and additional wishes such as organ donation can spare loved ones from making decisions at a difficult time.
By taking some time to confront our own mortality, we can help our families to face the inevitable with clarity and grace. It is an act of love to leave behind a well-organised plan, ensuring that our departure causes as little additional burden as possible for those we care for most.
To conclude, conversations about death shouldn’t be deemed ‘morbid’. Some families will find they learn things when talking openly that would otherwise have disappeared with them.
Initiating the death planning process is always the hardest part but is essential to ensure that your wishes are met whilst keeping the process as stress-free as it can possibly be for your loved ones. Remember, you can always change your mind, and you don’t have to decide everything all at once – you could start by making a list of the organisations you have a financial relationship with.
Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.