Money Musts Before You Die

Planning for your death can feel disconcertingly complex, not to mention morbid.

However in a few relatively simple steps you can go a long way towards making things much easier for your loved ones if the worst were to happen.

Life Insurance

Firstly, make sure you have enough life insurance. This can be designed to pay out money for something specific, like the balance remaining on your mortgage, or can more generally be to ensure your family avoid financial hardship when they no longer have your financial support. The younger you are when you take this out, the cheaper it will be and you can choose either:

  • Whole of Life cover which is more expensive but guaranteed to pay a lump sum when you die.
  • Term Assurance, which is much cheaper but will only pay if you die before an agreed date.

Make a Will

It is also important to make a will and keep it updated as your circumstances change. A will is important not least because without one it may be difficult for your family to know where your assets, like your house or any insurance payments, should go, and who should look after your estate. Making a will doesn’t have to cost anything and can also:

  • Confirm who is to be the guardian of any children you have.
  • Ensure your money and property are distributed in the way you want.
  • Avoid nasty family disputes.

Setting up a Trust

You should consider setting up a trust to hold your assets, especially if you have a large estate and some relatively complex wishes. The trust can either be created whilst you are still alive or once you have died, based on wishes you express in your will.

Involve Your Relatives

With the larger items sorted, don’t forget to make sure your relatives can access your bank accounts, insurance policies and so forth. Dealing with your death will be easier for them if they are aware of the arrangements you have made, including where to find your will. Try to involve others in your plans so that they know what is expected of them if you die, and where they can access all of the necessary paperwork.

Planning for your death needn’t be time-consuming or costly. When you consider the problems your family could face if you don’t prepare properly, you might find yourself wondering if you can afford not to.