Is it time to financially plan for death?
Death is something that many of us would rather not think about, but if like me you have a family with young children, it’s important to consider how they’ll financially cope when you go. For me, I couldn’t bear to think of Sofia and Arlo caught in a family tryst so we’ve just booked to have our wills done, should anything happen to Stuart and I.
Write a will
Writing a will allows you to decide who your funds and property go to when you die. Without a will, intestacy laws will determine how your funds and property are distributed – which may not necessarily be how you want it to be distributed.
You can hire a will writing service to write your will so that it’s legally recognised (you can write your own will, but it may not be recognised as an official document). You can get your will changed at any time, although you will usually have to pay to do so.
Take out life insurance
Taking out life insurance enables your loved ones to receive a compensation pay-out when you die. This could be used to cover funeral expenses and ensure that you have something to leave behind (it’s useful if you haven’t got any savings or don’t own any expensive assets to gift).
Life insurance rates can vary depending on a number of factors including age, health and the risks of your occupation. It’s worth shopping around for insurance in order to find the best rates. I have my life insurance through LV as they were the cheapest for me!
Pre-pay your funeral
It’s a bit morbid, but a number of funeral care companies allow you to pre-pay your own funeral. This can save your loved ones from having to pay out for it when they’re struggling to come to terms with the loss of you. Pre-paying for your funeral allows you to choose all the aspects you want too.
Protect against inheritance tax
If your estate is worth more than £325,000 when you die, some of it will be liable to inheritance tax. There are ways in which you can prevent your loved ones being charged this tax – these include gifting items when you’re alive or putting money into a trust.
Don’t panic though, there are advisors that can help you to explore your options if you want to minimise the amount of inheritance tax that is due.
*This is a collaborative post.