Planning for what will happen after a loved one dies isn’t easy to contemplate, let alone talk about. However, dealing with finances and admin after a bereavement – ‘sadmin’ – is a process many of us will go through at some stage.
With many families coming together over Christmas, there could be opportunities to kickstart a few conversations about life planning. Doing so could provide some reassurance, and help make things a little easier for those carrying out someone’s final wishes.
Dealing with the practical and financial aspects of death is particularly challenging, as it comes at a time when those left behind are still dealing with emotional distress and shock.
“Dealing with death is always horrendous, but coping with the financial aspects after someone has passed away can make a terrible time even harder,” says Sarah Coles, head of personal finance at Hargreaves Lansdown. “There’s an enormous amount to do, from sorting out energy bills to stopping pension payments, and then going through the miserable business of probate.”
There are steps people can take to “ease the pain of the ‘sadmin’”, however. Coles says when registering the death: “It’s worth paying for a number of copies of the death certificate at this stage, because you will need to send them to a number of people.”
Tackling sadmin
If the person who has died was living in Britain, people can also use ‘Tell Us Once’ – a service that enables a death to be reported to many government organisations in one go.
Coles continues: “You also need to contact any organisation they had dealings with, to let them know. This will include pension scheme providers, insurance companies and banks. If they’re still working, you need to tell their employer.”
She also highlights the need to inform medical professionals, such as GPs and dentists, as well as social services, if your loved one had personal care.
“You need to get in touch with anyone they paid regularly, including their mortgage provider or landlord, and utility firms – as well as any subscriptions, memberships or charities,” Coles adds. “Then the executor of the will has to go through the probate process, valuing the assets, working out whether there is any inheritance tax to pay, and then paying it.”
Coles says copies of the death certificate will also need to be sent to organisations where savings or investments were held. “Companies where you hold investments will have a pack of forms you will need to complete,” she adds.
Dealing with energy providers could also be on the list.
Coles suggests: “Try to get a meter reading as soon as possible for their gas and electricity. Then get in touch with the utility company they used, and let them know they have passed away. This is important, because when you tell the bank, they will freeze direct debits, so they need to know that the usual payments will stop.”
If the house where the loved one lived is being left empty for a period, but you intend to pop in every so often, Coles says the energy company may put the account on hold and delay sending a final bill until the property is sold. At that point, you would need to take another reading.
“They will send you a final bill, and depending on whether the account is in debt or credit, money will either need to be paid from the estate, or it will be refunded to it,” Coles adds. “This is one reason why it’s so useful to make a note of details of who your utilities are with and leave them somewhere your family knows about.”
Coles also suggests some people may need to be prepared for complications and setbacks. For example, if you’ve put the property on the market and agreed a sale, a buyer may pull out if they get fed up waiting for the probate process.
People may also hit admin backlogs, which can add “add agonising waits to what is already difficult enough,” Coles cautions.
Factor in funeral costs
Funeral costs are one of the more immediate considerations for grieving families. Insurer Aviva advises checking whether the deceased had prepaid for their funeral or had a payment plan in place. It says if there isn’t sufficient money in the estate and you’re a beneficiary of their life insurance, an early payment can often be made to cover the costs.
Motherland star Anna Maxwell Martin, recently highlighted the wide-ranging impacts of grief on BBC Radio 4’s Woman’s Hour. The actress told the BBC: “My husband died three years ago. And things were really difficult in every aspect of our lives and one of those was that, there’s lots of stuff that comes with grief, and one of them is financial terror.”
Don’t forget wills
Although it is such an important topic, Nick Flynn, a retirement income director from Canada Life, says research suggests that less than half of the UK population (49%) have discussed their end-of-life intentions – such as care provision or power of attorney.
Flynn says: “Talking about topics – some of which may feel like a taboo, such as inheritance, our end of life wishes – can lift a weight from people’s shoulders.
“It’s essential to start conversations with our loved ones about legacies, and a crucial aspect of planning for later life is making sure wishes are clearly laid out and officially recorded. Data shows that only around a third (39%) of us have written a will, and yet, it is one of life’s most important documents.
“There are various reasons as to why we don’t make a will; we don’t want to think about death, we believe it will cause arguments, life gets in the way, we don’t have enough wealth, and so on,” he continues. “The reality is that making a will provides valuable information, especially to loved ones who will perhaps care for us later on.”
He says wills should be regularly reviewed and kept up-to-date. As well as talking to family members, some people may want to consider professional advice.
Flynn says: “Engaging with a financial adviser can help you to build a comprehensive financial plan, covering savings, investments, retirement income, and intergenerational wealth planning. Remember, it’s never too early, or too late, to seek professional advice.”
