Helping a Loved One Plan Their Estate
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It’s a common misconception that a person who has already made a will does not require estate planning. However a will is just one element of a wider and more complex estate plan, including things such as medical care and financial matters.
In addition to helping protect the estate for future beneficiaries, estate planning can help ease the burden of dealing with financial matters while also coping with bereavement. For the testator (the owner of the estate), estate planning offers peace of mind that their affairs are in order and that decisions have been made independently, rather than by the court.
Professional Guidance
Being tasked with supporting your older loved one with financial matters can feel overwhelming, especially if these subjects are outside of your realm of knowledge. Laws, rules and regulations around estate planning in the UK can be complex, which is why seeking support from estate planning professionals is a must.
Consultation from a solicitor specialising in wills, probate and trusts can be especially helpful, while a financial advisor such as Beaumont Wealth can help navigate the specifics of money matters related to the estate, especially inheritance tax (IHT). Getting professional advice is also essential since it offers an added layer of impartiality that can be difficult to achieve if you are close to the owner of the estate.
How Estate Plans Work
Planning an estate is a complex process which can differ depending on individual circumstances. However, in general it can be broken down into some basic steps:
- Assessing the testator’s net worth by totalling their assets, less any liabilities
- Identifying where assets (including property) should go to, including any conditions
- Ensuring all arrangements made are legally binding.
What the estate plan is likely to include will depend on the testator’s individual circumstances. However some examples tend to be property, money, possessions and insurance policies that may pay out once they die. Increasingly, digital estate is also considered as part of estate planning, which includes what happens to assets like social media accounts.
Having The Conversation
Discussions surrounding financial matters can be challenging, especially when it comes to matters such as wills and estate planning, which combine two topics still considered in many parts of society to be taboo – namely money and death. Since neither of these are avoidable, it’s important to know how to broach these topics in a mindful and sensitive way.
Start by putting their needs and wishes at the forefront of the conversation. Ask what they would like to happen to their belongings, or the type of care they would prefer. Acknowledge that while it’s not necessarily a pleasant discussion (validation and empathy are also key), you’re in it together and you want to do your best to help them get everything in order.
Helping Them Prepare
In addition to having an open discussion concerning your loved one’s wishes, you can help them put together the documents required for estate planning. These can include:
- A last will and testament
- Power of attorney
- Advance directive (also known as a healthcare proxy or living will)
- Details of any dedicated trusts
Financial and legal support is essential, especially if these topics are not already familiar to you. If you are seeking guidance on this, The Citizens Advice Bureau can be a good place to start.
This article is for information only. Please consult a legal and/or financial professional for in-depth advice.