S12 Ep5 Family Matters: Making Financial Preparations for Death

In the fifth episode of this ‘Family Matters’ season, Simon and Bex discuss ways in which we can prepare well financially for death.

Some key points of interest covered in this episode include the following:

1. Simon and Bex acknowledge that death can be a difficult topic to discuss but suggest that there are real benefits to be gained from talking about financial matters related to death in an open and honest manner. [00:34]
2. In response to a question from Bex, Simon suggests that a key moment to start thinking about making preparations for death is when other people will be financially impacted by our passing. [03:49]
3. The top priority when preparing our estate for death is to have a will drafted by a solicitor. Without that, things can become very messy and expensive. [05:41]
4. Other preparations that can be very helpful include the following: lifetime cash flow modelling to predict future income and expenditure [09:15]; simplification and streamlining of bank accounts, pensions, investments etc. [09:53]; clear communication about what we have and where key information can be found [10:32]; updating details of our ‘financial footprint’ annually [11:47]; sharing accounts and transferring assets once it is clear that death may not be far away [12:20].
5. Simon explains how a deed of variation can be a helpful tool that can allow beneficiaries of an estate to make changes to a will if they all agree to implement a new arrangement. [13:10]
6. In connection with estate planning, it can be helpful to be aware that a will doesn’t include instructions regarding pensions [14:46] and that national laws can take priority on occasion, as is the case with the ‘prior rights’ of spouses and the legal rights of children in Scotland. [16:23]
7. When it comes to the potentially complicated question of to whom should we give what when we die, Simon notes that there are many factors that may need to be taken into account. Ultimately, the decision is ours to make, but good communication will always be a vital part of the process. [17:35]
8. Simon shares some thoughts on how wealth can be passed on to grandchildren, if desired. The use of a trust can be an appropriate and cost-effective way to do this, as inheritance tax can be avoided and the trustees can ensure that the right amount of money is passed on at the right time and in an appropriate manner. [21:09]
9. Simon rounds off his comments by suggesting that if we can be well prepared for death, we will manage our financial arrangements in a manner that, potentially, will help to soften the blow of our death for our loved ones. [23:31]
10. Next week’s episode will focus on dealing with financial matters related to accident and/or illness that can affect families. [23:55]

Suggestions or feedback arising from this episode can be sent via email to whereyourtreasureis@freerangepodcasting.co.uk while messages via Instagram should be directed to @whereyourtreasureispodcast.

Our Instagram page will also provide you with additional content and features.

This show has been brought to you by Free Range Podcasting.

You can sign up to receive news and updates about this podcast by filling out the brief form to which you will be taken when clicking here: https://where-your-treasure-is.kit.com/13c7b5fec6