Maybe you can enlist the help of family or friends or an independent financial advisor to help you unravel joint finances following the death. When you established your financial position, aim to maintain your financial stability. This will enable you to move forward in your life with confidence.
• A bank account in the bereaved person’s single name will be frozen on death. For this reason it is important to have a separate source of money in your own name. If you haven’t had this in the past, possibly because you haven’t earned income in your own right it is even more important for you to do so now. Because you may also not be a taxpayer any interest on your own account will not be taxed. You will need to fill in a special form called IR35, which can be obtained, from a Bank or Building Society.
• There may be a temptation to give away capital. STOP. Beware of impulse giving at this time, you may well regret it later. If you haven’t done so already find a good Financial Adviser who talks plain English and can help you make informed decisions by explaining your options and choices. Look for someone who you think will be able to identify with the changes you are facing in your life. Try to find someone with your viewpoint, perhaps of a similar age, it will probably be another female! The first experience of managing your own money can be overwhelming - so remember to take a space and seek help.
• You need to keep your own boundaries clear. It may be tempting to help out your family, but it’s also important to look after number one. You must now put yourself first. It will actually be to your family’s advantage if you gain a new independence and strength.
• It’s time for you to re-make your own Will. Be careful about gifting your property to your family. Although it might avoid the property being taken as security if Long Term Care is required or saves Inheritance Tax in the future. Unless you are also paying a proper market rate for remaining in the property, this could be a contentious area in the future.
• Another important fact of modern life must be considered before gifting your property. Divorce is all too common. If you gift your property to your children it becomes an asset of theirs. Should their marriage fail, your property could become included in their divorce proceedings. Seek good legal advice before making a decision on this matter.
• Planning Inheritance Tax when your partner has died and you are on your own is often easier to organise; the way is clearer and less complicated. You have an annual gift allowance of £3,000 p.a. and if you have not already done so, you can go back and use the previous year’s allowance. If you can afford to do so, you can gradually reduce your estate in this way. You are able to make a gift on marriage and make smaller individual gifts of £250. All these gifts are exempt from the value of your own estate when you die.
• Consider your own property, it is a most valuable asset and if you own your home you can raise capital from your property. It can help to provide additional income or be utilised for capital expenditure. There are some excellent schemes available but you need to make careful investigations. Owning your own property gives you the option of staying put, but the property can work for you by providing money, if you need it.
WILLS
The death of a loved one makes enormous physical and emotional demands on us. One of the most disturbing aspects of coming to terms with the situation and loss concerns money. If there is a will, the executors of the will must take responsibility for making sure that the instructions of the deceased are carried out. The citizen’s Advice Bureau or a solicitor can give you advice if your spouse or loved one has left property and money but no will. Solicitors can be expensive so why not ask a friend or neighbour to recommend one to you. The citizen’s Advice Bureau can also help to guide you through and find a solicitor. They can give you information of solicitors who participate in the Legal Aid Scheme at reduced fees or no fees at all in certain circumstances. An application must be made to the Probate Registry for legal authority to administer the estate of the deceased, and in Scotland it is necessary to make application to the Sheriff Clerk. It helps to have all the pertinent legal papers together when you do visit a solicitor. It saves time and therefore money.
You will also need to think about pensions, tax and benefits, so contact your local Benefits Agency (Social Security). Some widows are entitled to a Widow’s Pension and a tax-free lump sum Widow’s Payment. So check out whether you are eligible and if you are make a claim. If your husband or partner was receiving a pension you will need to inform the appropriate office of his death. Special tax arrangements are made for widows so you need to contact your tax office and give them your new details and circumstances.
Certain matters will require your immediate attention and action to avoid complications. You may need to inform people and organisations of your husband or partner’s death and to arrange the return of certain legal documents to the appropriate authorities. The following list serves only to prompt your memory and the requirements will vary from person to person. There may be other people you will need to contact, but if you are uncertain or not feeling up to it, ask a friend or member of the family to help you.
Bereavement Action plan
• Death certificate
• Former employer
• Bank accounts
• Credit cards
• Pensions (state and private)
• Personal Insurance
• Mortgage
• Investments
• PEP’s ISA’s TESSA’s
• Inheritance tax
• Passport
• Driver’s licence
• Car insurance
• Social clubs
• Trade associations
• Sporting clubs
• Church or religious organisations
Copyright and thanks to Diana Moran http://primetimelife.tv
