From MoneyWeek · · 2m
How to get your finances in order before you die
Create a will, update pension nominations, plan for inheritance tax, and outline funeral wishes to avoid family disputes after death.
In brief
Create a will, update pension nominations, plan for inheritance tax, and outline funeral wishes to avoid family disputes after death. Writing a will, updating pension nominations, planning for inheritance tax, and outlining funeral wishes ensures assets are distributed as intended without family conflict. Originally…
Write your will
Writing a will lets you declare what happens to your assets after death, ensuring your wishes are carried out.
“The first thing is for people to get comfortable with the idea of having those conversations”
Update pension nominations
Check your pension inheritance wishes and how they will be undertaken to ensure your pension goes to the right person.
“It's useful to remember that the main purpose of the scheme administrator is to find out where you would have wanted that money to go”
Plan for inheritance tax
In the UK, estates over £325,000 are liable to inheritance tax at 40% unless you leave 10% to charity.
“The biggest misconception is that you need all these complex structures”
Outline funeral wishes
Create a detailed document for funeral instructions to avoid confusion after death.
“You can also prepare for how the funeral will be paid for”
Create a fact file
Make a list of financial accounts and online accounts for your loved ones to access after you die.
“Royal London has created a 'When I'm gone' document covering many of these areas that you can access for free”
Check your will
Review your will every few years and after major life events to ensure it reflects your wishes.
“The biggest misconception is that you need all these complex structures”
Update pension nominations
Ensure your pension nominations are current to avoid inheritance issues after death.
“It's useful to remember that the main purpose of the scheme administrator is to find out where you would have wanted that money to go”
Plan for inheritance tax
Use the seven-year rule to gift money to children without inheritance tax if you live seven years after the gift.
“The biggest misconception is that you need all these complex structures”
Outline funeral wishes
Include details about cremation, burial, organ donation, and religious preferences in your funeral plan.
“You can also prepare for how the funeral will be paid for”
Create a fact file
Include a list of financial accounts and online accounts for your loved ones to access after you die.
“Royal London has created a 'When I'm gone' document covering many of these areas that you can access for free”
Check your will
Review your will every few years and after major life events to ensure it reflects your wishes.
“The biggest misconception is that you need all these complex structures”
Update pension nominations
Ensure your pension nominations are current to avoid inheritance issues after death.
“It's useful to remember that the main purpose of the scheme administrator is to find out where you would have wanted that money to go”
Plan for inheritance tax
Use the seven-year rule to gift money to children without inheritance tax if you live seven years after the gift.
“The biggest misconception is that you need all these complex structures”
Outline funeral wishes
Include details about cremation, burial, organ donation, and religious preferences in your funeral plan.
“You can also prepare for how the funeral will be paid for”
The one thing
Writing a will, updating pension nominations, planning for inheritance tax, and outlining funeral wishes ensures assets are distributed as intended without family conflict.
