Death and bereavement naturally entail grief and emotional difficulty. However, without a viable plan for when the inevitable happens, your loved ones could find themselves considerably financially worse off. From funeral plans to wills, inheritance tax and everything in between, in this post we’ll take a look at how you can lessen the impact of the death of a loved one.
Prepaid Funeral Plans
Prepaid funeral plans are a financial product which allow you to pay for your funeral. With a host of benefits and providing plenty of peace of mind, funeral plans will ensure your funeral wishes and costs are covered. A range of providers offer various funeral plans, from basic to premium level plans, which you pay for in advance. This means that your loved ones will not need to worry about respecting your wishes and, more impactfully, will be saved from the financial burden at what will naturally be a difficult time.
With an up-to-date will, your loved ones will be protected from dealing with a financial nightmare. If you’re married or have assets, such as property, shares or lots of money, it’s even more important your wishes a clearly recorded. By compiling a will, you will help prevent potential family conflicts, while saving them from making difficult financial decisions. For couples who are not married or not in a civil partnership, a will is the only way to ensure your partner is taken care of, as they will not be eligible to inherit otherwise.
Inheritance tax planning is a complex topic, beyond the scope of this article. However, to put it briefly, if there is no inheritance tax planning in place, 40% of your estate can end up going to the government. By, for example, giving your loved ones gifts seven years before you die or leaving cash to charity you can help reduce the inheritance tax bill. We will cover this topic in future articles.