The failure of people to organise their affairs is leading to financial problems when they die, creating added complications for grieving families, according to Dublin-based wealth management adviser Everlake.
Delays with probate could see loved ones locked out of bank accounts and other assets for months, the company, which specialises in estate planning, says, urging people to take steps to ensure they “die tidily”, including compiling a file of essential details and documents that your family should have to hand after you pass away.
“Death is understandably something most of us don’t like to think about, so it is not surprising that many of us put off preparing for what will happen after they pass away,” says Everlake director John McNicholas. “But failure to so do could see your grieving loved ones come under pressure on many fronts when you pass way – including financially.”
Among the steps he advises is putting cash to cover running bills for between 12 and 18 months into an account your family does have their own access to – such as a joint account with a spouse – to provide financial peace of mind while your affairs go through probate which will inevitably take time.
He also advises people to work through a checklist now while they still have the time to put things in order. This includes writing or updating your will, making sure it provides for named guardians if you still have young children or children with special needs, or trustees to manage the affairs of minor children if both parents die. Check that the prospective guardians are happy to act in the role to avoid distress and complications later on.
That aside, people should leave a list of where valuable documents, such as property deeds and birth/marriage certs, are located and details of your financial assets, such as bank and credit union accounts, insurance policies, share certificates/holdings and any investments. Don’t forget your family will likely not know the passwords you use for online banking and any other online services, including social media, so you will need to provide access to them in a form that is accessible after you are gone.
That might be with your solicitor, so make sure you write down who needs to be contacted when you die, including full contact details. Details of prepaid burial plots are obviously helpful, as are any preference for funeral arrangements.
The new Decision Support Service allows you organise your preferences on healthcare when you may no longer be able to make those details known yourself, including things such as organ donation, and you should also consider drawing up an enduring power of attorney to allow a friend or family member help with your personal care decisions if you suffer a debilitating incapacity.
“Don’t underestimate the importance too of having practical information at hand for your loved ones,” says Mr McNicolas, whose company has put together a template of the sort of file people might leave for loved ones. “Putting the groundwork in place so that your affairs are settled as smoothly as possible after you pass away will be a huge help to your loved ones.”
There are also steps you can take to minimise any inheritance tax bill for people who will benefit from your estate but this takes advance planning, he says.
And he advises people not to ignore their pension. “For example, if you opt for an approved retirement fund (ARF) on retirement rather than an annuity, it is important that you specify in your will that you want your ARF to be left to your spouse and children,” he says. “Otherwise, the ARF will slide into the residue of the estate, and it may not be distributed as you had intended it to be.”
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