In our final Life and Estate Planning video, Donna Mahoney discusses all the important practical considerations that you should think about when making these key decisions.
From having somewhere safe to store your passwords, to talking to your family about your funeral preferences, and the difference between a Power of Attorney and an executor, we ensure that you are equipped with the knowledge to start planning effectively.
If you have a question regarding anything mentioned in the video, or would like support with your Life and Estate Planning, you can contact Donna using the form below.
Transcript
Interviewer:
"Clients often ask us if we have a checklist for end of life planning. Our main categories include finances, so Inheritance Tax (IHT) planning, keeping a list of assets and savings..."
Donna Mahoney, Senior Manager, Tax team:
"Yes, and passwords too. It's important that you do not just keep a list of these accounts but also how you access them too."
Interviewer:
"Much financial information is now held online, and often bank accounts are paperless. If you are not able to access their emails, you may be oblivious to bank accounts held and statements being sent electronically. It also helps the executor carry out a more efficient role when you pass away."
Donna Mahoney, Senior Manager, Tax team:
"Yes, and that will only help with the speed of getting probate which enable the executors to do their job and for the state to be administrated smoothly."
Interviewer:
What sort of documents might an executor need? What would be useful to you if you were doing probate?
Donna Mahoney, Senior Manager, Tax team:
A list of your financial assets, list of the gifts that you have made – that is one thing we are often talking to our clients about. The executors would be required to list all the gifts you have made in the last seven years.
Interviewer:
Could they keep that as a simple spreadsheet?
Donna Mahoney, Senior Manager, Tax team:
Yes, there does not need to be anything technical about this. Record the date, the amount, and who the gift has been given too. The executors will then be able to work with the advisers to look at exemptions.
Interviewer:
This is key, because when you have passed away it will be the executors that effectively take over your finances and distributing those in accordance with your Will.
People often ask how executors stand up against attorneys. But when you have a power of attorney that appointment passes away with you. So you have an attorney all the way up until you have passed away, and then after your death control effectively is handed over to the executor."
Donna Mahoney, Senior Manager, Tax team:
"They might be the same person. Their appointment is under different requirements and different responsibilities. One is for your lifetime and the executor is post-death."
Interviewer:
"Legally, the sort of documents that should be kept safe include Powers of Attorney, Wills, property deeds, and then the practical things like arranging a funeral, if you have any preferences, either express those in your Will or, or leave a letter for your loved ones. It is quite helpful, we have found, that if clients have been given some direction as there is an awful lot of decisions to be made when someone passes away."
Donna Mahoney, Senior Manager, Tax team:
"As you say, planning the funeral, there is so many questions. So any guidance that you think may be useful, or just having a discussion with your family in advance would be beneficial.
The other practical side of it is thinking about those other day-to-day life things. What is happening financially? Where is the money coming in? What needs to be paid out? Things like utility bills, they are not going to be cut off if somebody's not paid a bill.
Interviewer:
"Our advice is the earlier you plan, and the more through you put into your life and estate planning, then usually the cheaper and quicker the administration of the estate is."
Donna Mahoney, Senior Manager, Tax team:
"Yes, and the smoother for the family that are left too. If things are left in good order, and the family know who to talk too, whether it is an accountant, solicitor or financial adviser, then the smoother the process."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
