Plan for the unthinkable
AS concern over coronavirus grows, the importance of putting your affairs in order looks just a little bit more urgent than it did.
The truth is that more than 50,000 Britons die every month, without help from Covid-19, and every adult should plan ahead to leave their affairs in order for their loved ones.
Key tasks include writing a will, drawing up a Lasting Power of Attorney (LPA) to manage your assets in case of incapacity, and planning your funeral. Simon Whitehead, chief executive of The National Careline information service, said it is vital to talk to your family:“These are sensitive matters and your loved ones will be directly affected if the worst happens.”
Better Retirement director Billy Burrows said if you die without leaving a will, your estate will be distributed according to the laws of intestacy. “That means your wealth may not go to the people you want to benefit,” he said.
This is particularly important if you have complicated personal affairs, for example, children with an ex-partner.
Although you can do a DIY will for a few pounds, mistakes could cost your family dear.A simple will might cost between £144 and £240, while Which? says prices start from £500 to £600 for a specialist will covering trusts, overseas property or tax planning.
Burrows said: “If you and your spouse or partner are making broadly the same plans, you can cut the cost with a ‘mirror’ will.”
Writing a will could be problematic as people self-isolate, as wills need to be signed by two witnesses in their presence, he warned.
An LPA allows a trusted family member or friend to act as your “attorney” and make financial decisions on your behalf if you lose your mental capacity. Coronavirus is not the biggest threat here, but dementia and Alzheimer’s are.
Burrows said there are two types of LPA, one covering health and welfare, the other for property and financial affairs: “Without one, your family may not be able to make key decisions, or even pay bills, on your behalf.”
Relatives cannot set one up after the family member has lost mental capacity, but will have to apply to the Court of Protection, a lengthy and costly process.
Act sooner rather than later. Registering an LPA with the Office of the Public Guardian can take up to 10 weeks, with a charge of up to £82.
Burrows said: “Choose your attorneys wisely and make sure they know where key documents are.”
Many people also like to plan and pay with a pre-funded funeral plan, offered by the likes of Co-op, Dignity, Golden Charter, Golden Leaves and Perfect Choice.
Ashley Shepherd, managing director at comparison site Over50choices, said families must overcome taboos surrounding death.
Government restrictions have boosted interest in lower cost “direct” cremations. “This gives you the flexibility to hold a memorial service or life celebration at a later date, when all family and friends can attend,” Shepherd said.