Thy Will be done!
Getting your financial affairs in order gives you peace of mind and helps loved ones at a difficult time, says Yours money editor Sarah Jagger
Things are rarely straightforward when it comes to money, so planning for what should happen if you or your partner pass away is very important. Not having a Will can mean your property, savings and investments may not be passed to the people you’d like to inherit them so make sure your wishes are clear. Name an executor to carry out your Will and ensure they know where to find it. It’s a good idea to make a contacts’ list for them with details of your solicitor, bank, accountant and financial adviser together with bank accounts, pensions and life policies and a summary of financial gifts you may have made for Inheritance Tax purposes. For a £25 annual fee, www.mylife.place
A Will ensures your wishes regarding your assets are carried out
lets you collate all this online with a secure passcode that you can give to professionals or relatives so they can access your requests and bequests. Jointly-owned assets usually pass to the survivor on death. Other assets are frozen until a Grant of Probate has been obtained – a process that can take months. Exempt for estates worth less than £5,000, the probate fee is then £215 when applied for by friends or family, or £155 if a solicitor completes the process. Ensure you and your partner or dependant has money in their own account to meet their needs during probate. Funds from your estate are used to pay any Inheritance Tax (IT) owed. There’s no IT to pay if either the value of your estate is below the £325,000 threshold or you leave everything to your spouse or civil partner. If you give your home to your children or grandchildren, your threshold will increase to £425,000. There are ways to reduce your IT bill including making gifts, giving to family members and putting things into trust, so talk to a tax adviser on how best to do this. Find one by calling 0800 023 6868 or visit www.unbiased.co.uk A life insurance policy could help to keep your family financially secure after your death. A policy doesn’t just have to pay out a lump sum; family income benefit policies pay out a monthly income instead. This may be better (and cheaper) if you are looking to replace an income if you were to die, rather than pay off a debt in one go. The average cost of a funeral is almost £4,000* and rising. A pre-paid funeral plan protects you and your family against rising costs and ensures they aren’t left with worries or expense.