Your great wealth transfer: 5 admin tasks to help get your estate plan in order

With an estimated £7 trillion expected to transfer between generations over the next 30 years, this is the third in a series of articles about preparing for your own great wealth transfer.

From essential family conversations to steps you can take to protect your estate from Inheritance Tax, ensuring you’ve taken appropriate precautions to leave your wealth to family and loved ones can be daunting.

So, this month, read a step-by-step guide to the essential admin that you shouldn’t put off.

1. Check your will is valid and reflects your wishes

Your will should be given top priority when organising your affairs.

Having a will not only makes distributing your assets to loved ones easier for the executor of your estate but also ensures that your assets go to the people you intend.

Despite this, according to Co-op Legal Services figures, approximately 40 million UK adults haven’t written one.

Even if you have a will, it’s vital to keep it up to date. This is especially important if your circumstances change.

For example, a death in the family, or a new grandchild may create the need to adjust your will. And it’s equally important to ensure your chosen executors are still able to act on your behalf.

You may want to include a letter of wishes. While this isn’t legally binding, it can provide a useful guide to executors and trustees to ensure your personal wishes are understood and carried out.

A letter of wishes should be written in plain English, signed, and dated, but not witnessed. Including one with your will could save huge sums of money in legal fees.

If in doubt, please get in touch and we’ll help make sure you take all the necessary precautions to ensure your will reflects your wishes.

2. Remember your expression of wishes for your pension savings

To ensure your pension benefits are passed to your loved ones, you’ll need to complete an expression of wish form.

This is a type of “pension will” that allows you to name the beneficiaries of your pension in the event of you dying.

The trustees of your pension scheme will use the form to make decisions on how best to distribute your pension savings.

Filling out the form is fairly straightforward – simply enter the details of your chosen beneficiaries and then return it to your pension provider, who will keep hold of it for you.

If you haven’t nominated someone to receive your pension in the event of your death, we can help you understand what you need to do.

3. Set up a Lasting Power of Attorney

While it’s estimated that 40% of Brits have a will, according to the Office of the Public Guardian, fewer than 1% of us has a Lasting Power of Attorney (LPA).

Your will ensures your assets will be distributed according to your wishes when you die. It’s also wise to take steps to ensure that your financial affairs are looked after by someone you know and trust in the event that you become unable to manage things alone.

Read more: 5 reasons you should put a Lasting Power of Attorney in place now

An LPA is a legal document that allows you to choose a trusted individual to manage your affairs in the event that you become incapacitated through accident or illness. Anyone over the age of 18 can (and probably should) make one.

Despite the name, they can be temporary or last for the rest of your life.

You may not realise it, but your spouse has no legal rights to manage your finances if you become incapable. If you don’t have an LPA in place, it can be both expensive and complicated to manage your affairs.

As with your will, once you have one in place, it’s important to regularly review any existing LPAs to ensure your chosen attorney(s) are still able and willing to carry out your wishes should they be needed.

4. Organise your paperwork and create an “in case of emergency” file

While you’re getting your financial affairs in order, it’s a good idea to also set up a list of all your assets and information that might be helpful if you weren’t able to manage things alone.

Put the document somewhere safe but easy to find. This will help your family avoid having to dig through old mail, bank statements, and tax returns to understand what’s what.

Include:

• Bank account details
• Investment details
• Any financial protection policies
• Where you keep your will and LPA
• The name of your financial planner, solicitor, and accountant.

Having everything organised will save your family time and hassle at a difficult time.

5. Consider setting out your funeral plans

Thinking about your funeral and making plans in advance will allow you to influence how your life will be celebrated. It could also prevent your loved ones from having to face a lot of emotional decisions and expense when they are grieving.

You can use your will to provide detailed instructions for your funeral, set money aside to pay for the arrangements, and even choose your preferred music.

In 2023, Co-op published a report that included the most popular funeral music. The top three choices were:

• Time To Say Goodbye by Andrea Bocelli and Sarah Brightman
• My Way by Frank Sinatra
• Supermarket Flowers by Ed Sheeran.

Planning your funeral could allow you to create an event that reflects your personality and is a meaningful occasion for those you leave behind.

Plus, it could help to reduce stress and worry for your loved ones, allowing them to grieve without being overwhelmed by decisions and responsibilities.

Get in touch

Organising your affairs can feel daunting but we’re here to help guide you through the necessary steps.

To find out more about how we can help you create a comprehensive estate plan that ensures your wishes are fulfilled after you’re gone, please get in touch.

Email info@logicfinancialservices.co.uk or check with your adviser.

 

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning, Lasting Powers of Attorney, or will writing.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.