One day, we’re all going to die. It’s an unavoidable fact of life, and something that many of us would prefer not to think too hard about. However, the truth is that preparing for death can make things easier for both yourself and those who love you. By getting your affairs in order, you can save them from added stress, while also making sure your wishes are heard. 

If this is something you are currently thinking about, firstly, we hope you’re doing okay. Our therapy booking service is always there if you are going through a difficult time and need someone to talk to. We want to try and make end of life planning that little bit simpler for you or your loved one, which is why we’ve created this ‘getting your affairs in order’ checklist of practical tasks. 

A lot of these steps you can take on your own, but don’t be afraid to ask for help if you need it. This may actually be wise, as it will mean someone knows exactly what preparations you’ve made. The list might look long and daunting, but many of these things you’ll already have lying around somewhere. It’s just a case of finding them, getting them together, and sharing them with the right people.  

1. Write your last will and testament

The first practical thing many of us think about when preparing for a death is the will. This sets out what will happen to your estate and belongings when you die, who will carry out your wishes and, if you have children, who will look after them. You can write a simple will on your own or find templates on Google that you can fill in. Make sure, when you choose an executor, it is someone you trust to act fairly and do exactly as you ask. We then recommend contacting a solicitor to read over your will, provide any feedback, and ensure the final document is legally binding. This is something we at Untangle may be able to help you with, so do reach out if you’re looking for the right solicitor for you.  

 

2. Communicate your funeral wishes

If you know there is a certain song you want played or ritual carried out at your funeral, tell the person or people who would be responsible for planning the day. Maybe you want everyone to wear a certain colour, or there’s a reading you’d like them to listen to. Whatever your funeral wishes are, write them down and pass them on to someone you trust. This isn’t just for your own peace of mind; it’s helpful for your loved ones too. They won’t have to guess or wonder (or argue over!) what you might have wanted when the time comes. Dying Matters and the National Association of Funeral Directors have created a ‘My Funeral Wishes’ leaflet, which you can print out and fill in if you need some help with ideas.

 

3. Document all of your passwords

So much of our lives is stored on phones and computers these days, which means that, chances are, your loved ones will need access to your devices at some point. Note down all of your passwords – including any for online banking, bill paying, emails, etc. – or better yet, use a password managing service to store them all in one place. 1Password keeps them all together, and lets you share with friends and family in a few taps. It’s completely safe (with plenty of security measures in place), but makes it easy to give people the access they need. 

 

4. Share locations for important paperwork

Two of the most important documents you can share with your loved ones are your life insurance policy and your pension details – but these can often be overlooked while people focus on the will. So, make sure you gather them up and place them in one location in your home, then tell your loved ones where they can find all the paperwork they need. Other documents and financial details to add in are: 

Place them all in a clearly labelled folder to make things even simpler for the person looking for them.

 

5. Make a list of who needs to be told

Those closest to you will probably know who to contact after you’ve passed away, but if you have some old friends you think they might forget, make sure to write their names and numbers down. This can go in the same folder as your important documents – just make sure someone knows it’s there. 

 

6. Consider your social media accounts

There’s no denying that social media has become a big part of our lives, so you may want to have an end of life plan in place for your Instagram, Facebook and Twitter accounts. Perhaps you just want them removed entirely, or maybe you want someone to create a post for you. Whatever the case, this is another thing to share with those closest to you. In your Facebook settings, you can even choose a ‘legacy contact’ to look after your account after you pass away or request that your account is removed once someone confirms your death.  

 

7. Make sure your car isn’t parked on the road

Your car insurance policy becomes invalid as soon as you have passed away, so if your car is parked on a road, nobody will be legally able to move it. Start making sure it’s parked up properly so it can’t become a problem later on. 

 

8. Ensure the executor has enough money

It will be up to the executor of your will to gather money from your estate and pay off any debts and home bills that come through. However, they can only get money out of the estate when the grant of probate has been issued, which means they may need some funds up front to cover essential costs. Try to come to an arrangement that will ensure they have enough money to pay off those bills, as even the most straightforward estates can take months to process. Alternatively, the executor may be able to get help from a solicitor, who can contact creditors on their behalf and advise on how and when payment will be made. 

 

9. Arrange a home for your pet(s)

If you live with just your pet(s), you’ll want them to go to a loving home; somewhere you know they’ll be taken care of and given all the care and attention they deserve. Think carefully about who you would want to look after them after you have gone. Someone they already have a relationship with would be perfect, as they’re likely to settle in much quicker. You could also register for the RSPCA’s Home for Life, and they will arrange a home for your pet on your behalf. There’s paperwork involved here so, again, make sure your pet’s plan is kept with all your other documents. 

 

10. Check if there’s anything you want to get rid of

As well as things you’ll want to gather, there might be things you want to get rid of, too. That slightly embarrassing teenage journal comes to mind! This is just a friendly reminder to go through your belongings and check there’s nothing that makes you cringe too hard. (But don’t worry too much; the people who love you won’t judge those old ‘Dear Diary’ entries.)

To connect with others who share a similar experience of loss, as well as access to coping tips and resources, download the Untangle app.

Parting with a home is never easy, and it’s undoubtedly harder when you’re parting with a house that’s filled with memories and after a bereavement. Here’s the Untangle guide to making this process just that little bit easier. 

  1. Take your time. If you can afford to, don’t rush into selling. Making big decisions in the immediate aftermath of loss isn’t advised, because it’s tricky to think logically in a time of such upheaval. You may sell a property that you later decide you wanted to keep. Remember, selling doesn’t always have to be the only option – renting the property out can sometimes cover mortgage and/or maintenance costs. However, if selling the house is right for you, read on to make parting a little less painful. 
  2. Capture everything. Take photos of every room, ideally both furnished and unfurnished. Consider hiring a photographer to take professional photos of both the interior and exterior.  Many artists can be commissioned to paint houses from photographs, and a framed painting of the house you’re saying goodbye to can make a lovely keepsake. 
  3. Host an informal memorial service. Invite close friends and family around to the house over a day or weekend to enjoy the property with you one more time. It can be a great way to make one more set of memories in the space, and share further memories of the deceased and their life there one more time.
  4. Take something with you. Some find it comforting to take a little piece of the house with them. Provided you’re not going to damage the property, taking a little light pull or finial and installing it in your own home can be a wonderful way to honour that property and keep it close. 
  5. Leave something behind. Even more people like to leave something behind. You could write something small in a cupboard or in a window frame, carve your family name into a brick or tree outside, or bury a time capsule in the garden. 
  6. Create a memory book. Whether you choose a scrapbook or a photobook, creating a physical space to memorialise the building is a lovely keepsake. Knowing you have a document within arm’s reach that reminds you of the home, and that you can show to future generations, can be a really comforting thing to own. 

Know that your home is the people who are important to you. Ultimately, it’s important to remember that this home is simply a collection of bricks, tiles, wood and glass. The memories which you associate with it are really stored in your head, and the protection the building once afforded you, truly resides in the people you love and care about. Selling that building changes nothing – you take the memories and love with you wherever you go, forever.

You may be able to claim your loved one’s pensions depending on your loved one’s age, your relationship to them and the type of pension account that they held. 

State Pensions

Accessing a State Pension should be done within the first 12 months after your loved one’s death. Often state pensions will stop being paid after the person dies, but in some cases a spouse or civil partner can inherit some of the pension.

  1. Notify the Pensions Service that your loved one has died. This can be done via the Tell Us Once service that notifies all government organisations, or by calling the Pensions Service helpline on 0800 731 0469.
  1. Assess whether you can claim your loved one’s pension. This can only be done by a spouse or civil partner. You can contact Gov’s Pension Service to check what you can claim (you may be able to claim extra benefits if you meet the criteria): https://www.gov.uk/contact-pension-service

What you get/how you claim depends on whether you reached State Pension age before or after 6 April 2016.

If you reached State Pension age before 6 April 2016

If you reached State Pension age on or after 6 April 2016

Personal or workplace pensions

Accessing a Workplace Pension should be done within the first 12 months since your loved one’s death.

  1. Check through their paperwork to see if they had a workplace pension scheme
  1. Contact the pension provider to find out how much they had and what to do next
  1. Find out if the pension is either a Defined Contribution pension or a Defined Benefit pension. If you are unsure what type of pension they had, you can contact their employer to ask. Read more about how to do this here [link to other article]

Defined Contribution pensions 

Defined contribution pensions, also known as a ‘money purchase’ scheme, allows an individual to build up a pension pot whilst in employment. This pot is used to pay out an income once they reach retirement age, based on how much the person and/or their employer contributed, and how much this pot has grown. 

If your loved one had not yet retired, any beneficiaries can usually withdraw all the money as a lump sum and set up a guaranteed income (annuity), or set up a flexible retirement income (drawdown). This might not always be possible, so check the conditions of the pension. 

Different tax rules apply when inheriting a defined contribution pension, and it depends on whether the person died before age 75. 

If your loved one died before age 75:

If your loved one died after age 75:

Defined benefit pensions

A defined benefit pension pays an individual an income based on their salary, and how long they worked for their employer. These are less common, and tend to only apply to public sector or older workplace schemes. Each scheme is different, and any money paid out to any beneficiaries will be outlined in the rules of the pension scheme. 

This type of pension often pays out a ‘dependant’s pension’ to anyone financially dependent on the deceased, including a spouse or civil partner,  a partner the deceased wasn’t married to or in a civil partnership with, and/or child(ren) under 23. This payment is a percentage of what your loved one was getting, or would have received if they had not yet reached retirement age. This income is often taxable. 

If the pension was a small amount, it can often be paid in a lump sum. 

If your loved one had not retired: 

If your loved one had retired: 

Lifetime allowance

If the total value of your loved one’s pension contributions is more than the lifetime allowance, you might have to pay tax on any money you inherit from this.

The lifetime allowance usually changes every year, but it is frozen at £1,073,100 until 2026.

And there you have all the steps required in claiming your loved one’s pensions. For free grief support and a supportive community, click here

 

Last updated: 16/06/22

You will need:

Things to note:

The application fee is £273 if the value of the estate is £5,000 or over. There is no application fee if the estate is under £5,000.

Extra copies of the grant of probate or letter of administration cost £1.50 each. It is worth getting a few copies – we would recommend one for each account you still have to close, so you are able to send them to different organisations at the same time. This should help you to complete the process faster.

How to apply for probate:

How to apply for letter of administration:

What’s next?

Last updated: 16/06/22

What is Inheritance Tax?

Inheritance Tax is a tax you have to pay upon inheriting the estate of someone who has died, including all of their property, possessions and money. It needs to be paid by the executor. Inheritance Tax must be paid or partially paid before probate or letter of administration can be granted, although there are some exceptions. Inheritance tax is sometimes referred to as Capital Gains tax.

What is the threshold for paying Inheritance Tax?

You will need to pay Inheritance Tax if the estate is valued at over £325,000. Usually, anything over this threshold is taxed at a rate of 40%. However, there are many exceptions to this.

For more information: gov.uk

There are many other possible assets that might need to be added to the value of the estate to comply with estate law. These include interests in trusts (which might have arisen on the earlier death of a spouse), transfers of value within the last 7 years, or gifts made at any time where the person who has died retained some kind of benefit in the asset given away,  An example of this might be putting a house in the name of children, but continuing to live there or visit on holiday.

Typically, no Inheritance Tax is due if:

You are obliged to file a report with HMRC even if there is no tax to pay. You can do this here: gov.uk

If you don’t need to pay Inheritance Tax, skip to Step 3: Applying for Probate or Letter of Administration

Where do you get the money to pay?

Banks or building societies may release money out of your loved one’s account before probate or letter of administration has been issued if it is being used to pay Inheritance Tax directly to HMRC. If you are paying Inheritance Tax on property, HMRC may accept staggered payments spread over a period of time. If you pay the Inheritance Tax out of your own money, you can get a refund from the estate once probate has been granted.

How to pay:

  1. Value your loved one’s estate (Step 1)
  2. Decide whether it is likely that you will need to pay any Inheritance Tax based on the information in Step 2
  3. Report the estimated value of the estate to HMRC (even if you will not need to pay Inheritance Tax)
  4. If you think you need to pay Inheritance Tax, apply for a reference number. This needs to happen at least three weeks before you make a payment.

Feeling a bit stuck?

Sometimes getting a professional to take over helps moves things along. We offer a range of solicitors who can help take away the pressure of dealing with estate law and wills.

Next Step: Applying for Probate or Letter of Administration