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Benjamin Franklin once said, “there are only two things certain in life; death and taxes”. But if this is the case, then why do we avoid talking about death?
I guess the truth of the matter is the unknown aspects of such a certain thing; how will we go? Will it hurt? What will happen once we have gone?
Whilst it is impossible to predict the answers to the first two questions, there are a number of steps that can be taken to at least influence the third.
Let’s take a look at the ways we can have some form of control over what happens when we pass…
Life insurance
One of the biggest uncertainties of when we pass is what will happen to our loved ones and will they be financially secure. Death can be expensive. Factoring in lost incomes, funeral expenses and legal fees, your loved ones can be left with a hefty price tag as a result of your death.
However, arranging life insurance can free them of this financial burden. Such policies will provide your loved ones with a lump sum payout upon your passing. This can be used for whatever they deem fit, covering the necessary costs associated with dying or simply to enjoy at a vulnerable and emotional time.
Despite popular belief, life cover doesn’t have to be expensive and can be arranged for as little as just 20p-a-day in the UK.
Using a broker can make the process really simple, providing you with all the information you need to determine the right cover for your needs and comparing quotes to find you the best available deal.
Avoid inheritance tax
When you pass away, all of your assets form part of your estate. This includes your property, savings, valuables and even your life insurance payout. The overall value of your estate is then subject to an inheritance tax of 40% on everything over £325,000 in the UK.
This can significantly reduce the overall value your loved ones will receive. However, writing your life insurance in trust will make your protection sum exempt overall estate value.
Not only does this mean that your loved ones will receive 100% of your life insurance payout, but it will also reduce the estate value which will be subject to inheritance tax.
Writing your policy in trust is simple and free. Simply get in touch with your provider for a trust form and provide them with the necessary details.
Plan your funeral
As discussed, arranging life insurance can protect your loved ones from the costs associated with your funeral, however, there is another option. It is possible to arrange both payment and planning of your funeral, alleviating your loved ones from both the financial and emotional strain.
Arranging a funeral plan can allow you to make monthly payments to secure the cost of your funeral at today’s rates. This can be extremely beneficial given that the average cost of a funeral has increased by 122% over the past 14 years. This trend is occurring all over the world.
Once all payments have been made, your funeral has been paid for and when the day does come, your loved ones won’t have a further penny to pay. But on top of this financial benefit, arranging a funeral plan will also allow you to plan your funeral in advance, again alleviating stress from your loved ones.
You can work closely with the funeral provider to specify everything from the coffin, chapel, ceremony order and even songs and dress code. When you pass, your funeral provider will be well versed in your final wishes, ensure you have the ceremony you desired and prevent your loved ones from having to make difficult decisions.
Leave a will
Before the value of an estate can be distributed accordingly, beneficiaries will have to go through probate. This process can take around 8 weeks but can take longer depending on the circumstances.
Again, as a means of reducing stress at an already emotional time, leaving a will can ensure that your wishes are clearly stated and followed. When a will is not present, estate value usually falls to the next of kin but if this isn’t simple, it could cause family feuds.
Therefore, to provide the best for your loved ones, it is always favorable to write a will in place stating your final wishes. One key thing to consider when arranging your will is the executor you appoint.
Upon your passing, the rights to your assets are passed to your executor who is then responsible to distribute your estate as you requested. Therefore, it is essential you appoint an executor you trust. Ultimately, it is at the discretion of the executor to determine how your assets are split.
Take back control
So, as you can see, whilst we cannot predict when or how we will die, we can control what happens to our loved ones when we do.
Death is a taboo subject, especially here in the UK, but it is one that can’t be ignored. Breaking the barrier and bringing the subject to the surface allows us more ownership in the long run.
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This content is brought to you by Ben Bendall.
Photo: Shutterstock
