Are your financial affairs in order?

Have you spent the time sorting your financial affairs and putting them in order?

If not you will find this information invaluable!

Death is a certainty!

There are only two things in life that are unavoidable and predictable- death and taxes. None of us want to think about the end of our lives, but this will happen; it’s not a maybe! I am shocked by the number of people who make little or no provision for this life event and leave a mess behind for their loved ones to deal with. Some people fear that if they deal with it they will be jinxed and this will bring about their demise earlier. This is of course utter nonsense and burying your head in the sand is most unwise! It is also essential to consider if you own a business or are a director or shareholder, what will happen in the event of your death to your business?

Preparation is key, and you are never too young to do this.

In my book ‘She Can Prosper’, I shared a story about a woman who died at the age of just 30 who passed away suddenly from a brain injury, leaving behind two children, a seven-year-old daughter and a son who was just 12 weeks old. Her daughter was from a previous marriage; although she had been separated, she wasn’t divorced. She had made a life with a new partner; they had just had their first child and recently got engaged.

She did have a will but had not updated it to reflect the changes in her life, and as she was still married, her husband received her entire estate. Read the full story of what happened and the difficult situation her sister found herself dealing with. This could have all been avoided if she had got her financial affairs in order. 

Preparing your financial affairs is one of the most caring, responsible things we can do for those we love.

Whether you’re planning ahead for your own passing or the potential death of your spouse or partner, making financial preparations now can ease future emotional and practical burdens.

Here is my checklist – how many can you tick off?

And what you can’t tick off as done, take action now!

1. Make a Will (and keep it updated)

A legally valid Will ensures your money, property, and possessions go where you want them to. Without a will, the government’s rules of intestacy decide often do not in a way that reflect modern family dynamics. Find out more on this here. And you can read a useful blog here on my website about wills. 

Key tips:

• Appoint executors you trust.
• Consider guardians for minor children.
• Update after major life events (marriage, divorce, new grandchildren, etc.).

 

2. Set up a Lasting Power of Attorney

A Lasting Power of Attorney (LPA) lets someone you trust make decisions for you if you can no longer do so, whether due to illness, accident, or cognitive decline. Read more here on LPA’s, one of the most important documents you should have in your life. 

There are two types:

• Health & Welfare
• Property & Financial Affairs

You and your spouse/partner should both set these up sooner rather than later.

3. Joint Assets

In the UK, joint bank accounts usually pass automatically to the surviving partner. However, this doesn’t apply to individual accounts, investments, or property.

• For joint tenants, your share of the property goes automatically to the other.
• If you’re tenants in common, your share is passed according to your Will.

Review how your home is owned as it matters more than you think. Discuss with your solicitor. 

4. Arrange Life Insurance (and check the details)

Ensure you have adequate life insurance, especially if your partner or family is financially dependent on you.

Check the following –

• Is it in trust? (If not, it may form part of your estate and be taxed.)
• Is the payout amount still suitable?
• Are the beneficiaries correct?

5. Creat a list of all your accounts, assets & debts

Create a clear, easy-to-find list of:

• Bank accounts
• Pensions
• Investments
• Property deeds
• Insurance policies
• Debts or credit cards

This saves your loved ones from a painful scavenger hunt during an already stressful time.

6. Understand Probate & Inheritance Tax

Most estates in the UK go through probate, this is the legal process of administering someone’s estate.

If the estate is worth more than £325,000, Inheritance Tax (IHT) may be due. There are various allowances and strategies to reduce this—especially when passing to a spouse or civil partner, who are typically exempt from IHT.

There’s normally no Inheritance Tax to pay if either:

• the value of your estate is below the £325,000 threshold
• you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club

The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold. E.g Your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000).

You can read more here on Inhertiance Tax. This can be a very complex topic and a financial advisor can help you plan efficiently and legally to protect your family’s future.

7. Discuss your wishes and write them down

Have the difficult conversation now. Share your wishes for your money, your funeral, your digital accounts, and even your pets. A simple letter of wishes can guide your family and bring peace of mind.

Preparing for death doesn’t have to feel morbid. It’s a gift to those we love and removes confusion, legal obstacles, and financial uncertainty during one of the hardest times in life.

Take control now. Because while we can’t control when we go, we can control how we leave things behind.