Let’s talk about Death. This is Dying Matters Week. Its purpose is to encourage us all to talk a bit more openly about death, dying and grief. Not a happy subject. But one of my favourites to talk about when we start looking at financial planning and pensions.
We don’t like to talk about it. Either because we cannot think of ourselves like that, or we think we are immortal. Some even carry the view that it doesn’t matter because when they die, they will be dead, and nothing will then be of any concern to them.
The reality is we will all die at some point, and we will leave people behind, people that we care about. If you do not have your financial affairs in order, then this will make managing your loss and the grieving process even harder for your dependants.
So let’s bust some common myths:
1 – I don’t have anything to leave behind
Maybe, but if you are a member of pension scheme there will be death benefits payable, including a lump sum (either a multiple of salary or return of fund depending on the scheme). Make sure you fill in a nomination form to ensure this goes to who you want. Benefits of this type are paid quickly and under trust, so do not count towards your estate and will therefore avoid any Inheritance Tax.
2- Everything will go to my spouse/ partner anyway
Yes and no. If you are married, have no nomination forms and no will then any assets will be paid through the laws of intestacy which will require someone to apply for probate. This can take a few months. Probate assigns a priority order to beneficiaries which is usually – spouse, kids, parents, siblings and so on. No will or nomination could mean everything goes to your spouse, but it could take a long time. How will they survive in the meantime?
If you are not married, then this will not happen. Even if you have a long-term partner and you live together, the laws of intestacy will not recognise a ‘common law’ partner. If you have children and step-children it can be even more complicated.
Nomination forms and a will make sense on so many levels.
3 – I am not the ‘admin’ person in the house, so it doesn’t matter
Maybe. But have you thought what would happen if your spouse or partner (who is the admin person) dies, how will you cope? How will you know what to do financially and what you need/ can access? This is a time when you will be upset and grieving, and so financial matters need to be as simple as possible.
We need to talk more about death. What do we think?
It is a hugely important subject which we need to make less taboo. We all need to be more engaged in this area and on board. Key points:
- Prepare a will, they are not expensive. Unions, charities and some other organisations may also do them for free
- Make sure your pension nomination forms are up to date – you can amend and update these at any time
- Ensure your spouse/ partner/ other family member / friend is aware of your financial commitments and where to find documents [we have a death file at home].
If you don’t have a will and don’t know where to start – we use these:
Where There’s a Will There’s a Way — Will Writing Experts (theresawill.co.uk)