Everlake, a wealth management adviser in Dublin, has highlighted the financial difficulties faced by grieving families due to the lack of effective estate planning by many individuals before their demise. The company specialises in estate planning and stresses the importance of meticulous organisation of affairs to prevent complications upon death. Probate delays could bring about hardships such as not being able to access bank accounts and other possessions for months.
John McNicholas, the director of Everlake, underscores the difficulty many people face when thinking about their mortality. He insists that reluctance to plan for life post-demise may exert a significant toll on grieving family members, especially in financial terms. To avoid this, McNicholas recommends depositing sufficient funds to cater for bills for one to one-and-a-half years in a joint account. This will guarantee financial stability during the inevitable probate period.
Another suggestion he gives is a comprehensive checklist completed at your own pace before death. This may include the writing or revising of a will, ensuring guardians are designated for underage or special needs children if left behind, or creating trust for the affairs of young children if both parents pass away. It is also recommended to ascertain the willingness of nominated guardians to avoid distress and further complications.
Beyond these, having a list detailing contained valuable documents such as property ownership deeds, birth/marriage certificates, and financial assets such as bank and credit union account details, insurance policies, share certificates, and investments are crucial. Make sure passwords for online banking and other services including social media are accessible after your death.
In an instance of death, knowing who to contact, including their contact information, is also recommended, as is providing the specifics of prepaid burial plots and preferred funeral arrangements.
The newly introduced Decision Support Service makes it easy for you to arrange your health care preferences when you might not have the ability to do so yourself, covering aspects like organ donation. It’s worth contemplating the establishment of a lasting power of attorney to assist your friend or relative in making personal care choices if you’re struck with a debilitating condition.
“Ensure you comprehend the importance of having critical data readily available for your family,” advises Mr McNicolas. His business has created a model of the type of document people should leave for their family. “Taking the initial steps to peacefully sort out your affairs post-demise will be incredibly supportive to your family.”
There are also prudent measures you can employ to lessen the inheritance tax burden on those who will inherit your property, but such an action necessitates foresight and planning, he explains.
Furthermore, Mr McNicolas cautions individuals against neglecting their pensions. “For instance, if you choose an approved retirement fund (ARF) over an annuity upon retirement, it is crucial to indicate in your will that you wish your ARF to be passed on to your spouse and children,” he states. “Otherwise, the ARF could become part of the residual estate and might not be divided in the manner you had envisioned.”