Make sure you have a Will and put your affairs in order before you die

Make sure you have a Will and put your affairs in order
before you die

Following the tragic loss of a dear friend and business partner
this week, I was reminded of just how precious and fleeting life can be. We all
should make the best of our time on this earth.

She certainly packed more into her short life than most
people would in three lifetimes.

Someone once said that there are two things certain in this
life:

Death and taxes!

We’re all going to die one day, but unfortunately, taxes,
and other financial liabilities, do you not die with you. The government still
wants its share of your estate before it is passed on to your beneficiaries.

Even though you build up your savings and property from
money on which you have already paid tax, the taxman still puts his hand out for
a cut when you die so that the government can spend it. Each year, HMRC collect’s
around £5 billion in inheritance tax (IHT) from ordinary families, as well as
the rich. Politicians on the left would like to see this increase, as they do
not believe children should inherit wealth.

You cannot change the system, but you can take steps to legally
mitigate inheritance tax liabilities. See my article on the billionaire
Duke of Westminster who legally avoids several billion pounds inheritance taxes.
Even the staunch left-wing socialist MP Tony Benn used trusts to avoid
inheritance tax on his substantial estate before he died.

You need to take advice on IHT planning, but three of the common
methods used are:

1.     
Wills

2.     
Trusts

3.     
Life Assurance

Where there’s a will there’s a relative.

There’s an old saying, “where there’s a will there’s a way”,
but there is also a saying, “where there’s a will there’s a relative!”

When somebody dies, relatives you haven’t see for years turn
up from all over the place.

Even if you think you don’t own very much, you should make a
Will.

If you die without a Will, known as dying intestate, the
state will make one for you and distribute your assets in accordance with the laws
of intestacy. Furthermore, if no beneficiaries can be found when you die, your
estate will go to the state!

Here are some points to consider.

Make a Will even if you think your situation is
simple and you don’t see the point because you are going to “leave everything
to your spouse or children”. Wills can include ‘expression of wishes’, such as
whether you want to be buried or cremated, where you would like to be buried
and the type of funeral service you prefer.

Have it done professionally preferably by your
solicitor or a Will specialist. You can buy basic Will online or at WH Smith’s,
but I wouldn’t recommend it, as it needs to be prepared properly in order to be
valid. You don’t want relatives turning up challenging the Will or claiming
that it is not valid for one reason or another.

Make sure that people can find your Will. Your
solicitor can hold the original, but you also need to let people know you’ve
made a Will. Burying it away in a drawer or in a box in the loft is not the
best place.

How will your family pay for your funeral? Do you
have insurance, a funeral plan or a pre-paid funeral with a reputable firm?

People often do not realise that when a loved one dies, their
financial assets, such as bank accounts, are effectively frozen. In other
words, your family will not be able to access your money until a grant of
probate has been given, which could take several months or even years in more
complex cases.

A basic funeral costs between £3000 and £5000, which will
have to be paid for upfront. In addition, there are also costs for a graveyard
plot, as well as cemetery or crematorium fees.

Make sure you have adequate life assurance if you
have dependents.

You should also take advice about putting your insurance
cover into trust so that it does not form part of your estate upon death, which
means the money from the policy will also be paid out to beneficiaries far quicker
without the need to wait for probate.

I was in financial services for over 25 years and almost
everybody I met was underinsured. Husbands who were the main breadwinners would
often say things like, “well, she’s got the house hasn’t she?“.

People even have mortgages that are not protected by
insurance. Clearing debts upon death should be your first priority unless you
have no dependents.

Think about inheritance tax. Thousands of ordinary
families with just one property have been hit with huge inheritance tax bills.
You may want your family home to be preserved by your children, but the
property may have to be sold quickly to pay inheritance tax.

You can also make use of lifetime allowances to gift monies
to children or grandchildren.

Finally, don’t leave things to chance and take
professional advice from your solicitor or financial adviser. This is not
something for the DIY enthusiast!

Other articles available at Money Tips Podcast - www.moneytipsdaily.com

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Millions of people face a bleak future post-Coronavirus
lockdown, as businesses disappear and the job furlough scheme eventually comes
to an end. However, life doesn’t have to end because of lockdown! You can join
thousands of ordinary people who have increased their income and added
streams of new income during this period.

Are you ready to adapt to the new economic model?

As lockdown restrictions around the world are being eased,
the economic model has subtly changed forever. How will you adapt to this new
way of working and running a business, what obstacles and opportunities lies
ahead? Will you be a participant or spectator in this revolution?

By Charles Kelly, Wealth Mentor, Property Investor, Author
of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.

There are more examples and practical
steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3
R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it
out on Amazon http://bit.ly/2MoneyBook.

If you’d like further information on wealth mentoring and
coaching, how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.net
or send me a message through Facebook or my Money Tips Daily community. See
more articles at www.moneytipsdaily.com