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:
Debts you might owe, including mortgage statements, utility bills in your name, leases, educational loan statements and other unpaid bills.
An outline of all bank accounts and credit cards you own.
Your birth certificate and (if you have one) marriage certificate.
Life insurance documents, including mortgage cover.
Any paperwork related to your property, including mortgage agreements and property deeds or leases.
Relevant statements from Jobs & Benefits Offices (for benefits) and/or the Pension Service.
Existing valuations of expensive items, such as jewellery or artwork.
PAYE form P60 if you are employed or recent tax calculations and returns if you are self-employed.
Organ donor card.
Passport, driving licence and any relevant membership cards.
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.)
You will need:
The original will (if you have one)
The original death certificate or an interim death certificate from the coroner
A completed estimation and report of the value of the estate from HMRC, as completed in Step 1
Depending on the value of the estate, a notice from HMRC saying that you’ve either paid Inheritance Tax or have no tax to pay, as completed in Step 2 or 3 (this can be corrected if necessary after the probate/ letter of administration application is complete).
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:
Once you have gathered all the documents from the list above, you need to complete the PA1P form and check whether you are eligible to apply for a grant of probate online
Once you have gathered all the documents from the list above, you need to complete the PA1A form and check whether you are eligible to apply for letter of administration online
Probate/ letter of administration usually takes around 8 weeks to be granted, but might take longer at the moment due to coronavirus
If you have already contacted financial organisations to inform them of your loved one’s death, the accounts should be frozen to stop payments going in or out. You can now go back to these providers to inform them that you have a grant of probate to act on the behalf of your loved one
Once you are able to access your loved one’s accounts, you can make an accurate assessment of the value of their estate and can correct any under or overpayments of Inheritance Tax with HMRC
If you are doing this without a solicitor, you can find further information on the Government website
Depending upon the financial situation of your loved one, you can now pay off any debts from the estate and distribute their assets according to their will (if there is one)
If the estate is complex, or if there are multiple beneficiaries, it would be sensible to keep detailed records or accounts showing the assets of the estate, all payments in and out, and the ultimate distributions to the beneficiaries
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.
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:
The value of the estate (taking into account all of the issues above) is below £325,000 – this is known as the Nil Rate Band (NRB)
Everything above the threshold is left to a spouse or civil partner, or
Everything above the threshold is left to an exempt beneficiary such as a charity
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:
Value your loved one’s estate (Step 1)
Decide whether it is likely that you will need to pay any Inheritance Tax based on the information in Step 2
Report the estimated value of the estate to HMRC (even if you will not need to pay Inheritance Tax)
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.
An estate is everything your loved one owned. This includes property, money in their financial accounts (eg. bank, building society, pension pot) and possessions.
First, you need to value the money and all financial assets they owned
You might have already contacted all the financial organisations your loved one held accounts with. Just as a reminder, organisations to contact often include:
Their bank or building society – ask them to freeze any payments into or out of the account until you have applied for probate
Any companies with which they held stocks or shares
Their employer – they may be owed wages
Ask each of the organisations for a statement of the value of the assets and any debts held by the deceased. If they had a mortgage, ask their mortgage lender if they require payments to continue while you are completing the probate process.
Make a list of all the information you receive from the financial account providers. Include any lump sums from pensions or life insurance.
Then, you will need to consider any gifts made by the person who has died, which took place within the 7 years prior to their death.
Any gifts which totalled less than £3,000 in any year are exempt, as are any gifts made to charity or to a spouse or civil partner. There are some other exemptions which apply to smaller gifts for weddings or special occasions, and where the gifts have been made out of surplus income. If you have any doubt, you should seek professional advice.
Next, value your loved one’s possessions
Make a list of all the possessions they owned and whether these were privately or jointly owned. The list might include property, furniture, artwork, jewellery and cars
Estimate the value of each of these possessions on the day that your loved one died. This is a rough price that each item could realistically be sold for, not the price they paid. You can research this online, or get a professional valuation. If the estate is liable to inheritance tax (see below), you are likely to need a professional valuation
Divide any assets jointly owned with your loved one’s spouse or civil partner by two. For any assets owned by more than two people, divide the asset by the number of owners
To value a property for probate or letter of administration:
a) If you know the value is not close to the Inheritance Tax threshold of £325,000, you can carry out a property valuation for probate yourself by searching for it on Zoopla, or searching for the value of similar properties in the same area
b) You can use a local estate agent, but if you think the property may be valued near to the Inheritance Tax threshold (£325,000), it is recommended that you use a chartered surveyor as they will have more experience valuing a property for probate and Inheritance Tax purposes
Add these figures together for an estimation of the total value of the estate for probate or letter of administration.
Feeling a bit stuck?
We understand that calculating the value of an estate for probate is complicated. Although this guide will help you, others have said that using a solicitor takes away the pressure of dealing with estate laws and wills. Take a look at our trusted solicitor partners.
Managing wills and probate can be complicated, so here is a guide to the steps you will need to take – whether you are working with a solicitor or doing it yourself.
If your loved one had a will: You’ll need to apply for a grant of probate
The probate process: how long does probate take, and who can do it?
Obtaining a grant of probate allows you to access your loved one’s assets and distribute them in accordance with their will. The executor of the will should apply for probate within a few months of your loved one’s death, as it may be necessary to access and close certain accounts that your loved one held. The probate process can vary in length, but on average, administration takes 6-9 months.
You don’t need it if:
The person had no assets outside the UK, and
All assets were jointly owned (eg. Mr & Mrs Jones’s bank account), or
The value of the estate is less than £10,000 – but make sure you check with the financial providers!
You are likely to need probate if any of these apply to you:
If your loved one had any assets overseas – this includes property or financial accounts
If your loved one had financial assets valued at over £10,000 that were not jointly owned e.g stocks, shares, savings
If the value of your loved one’s estate (everything they owned) is more than £10,000 – this includes property, money and possessions. Each bank has its own threshold to determine whether you need probate to access your loved one’s account with them
To find out the thresholds for probate, contact the account provider(s). If you do need to apply for grant of probate, follow the steps in our guide below:
If your loved one didn’t have a will: You’ll need to apply for a letter of administration
What is letter of administration and who can do it?
Obtaining a letter of administration allows you to access your loved one’s assets and distribute them in accordance with their will. The executor of the will should apply for probate within a few months of your loved one’s death, as it may be necessary to access and close certain accounts that your loved one held. In this situation, the person who deals with the estate is usually the deceased’s next-of-kin, such as a spouse or child. You should apply for a letter of administration within the first few months of your loved one’s death if you need to access or handle their accounts.
You don’t need it if:
The person had no assets outside the UK, and
All assets were jointly owned (eg. Mr & Mrs Jones’s bank account), or
The value of the estate is less than £10,000 – but make sure you check with the financial providers!
You are likely to need a letter of administration if any of these apply to you:
If your loved one had any assets overseas – this includes property or financial accounts
If your loved one had financial assets valued at over £10,000 that were not jointly owned e.g stocks, shares, savings
If the value of your loved one’s estate (everything they owned) is more than £10,000 – this includes property, money and possessions. Each bank has its own threshold to determine whether you need a letter of administration to access your loved one’s account with them
To find out the thresholds for removing assets from your loved one’s accounts, contact the account provider(s). If you do need to apply for a letter of administration, follow the steps in our guide below:
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