‘Father dies – what next?’: Six documents you need to help transfer assets to your loved ones after death

“The folder contained everything his family would need to make the administration process as simple and stress-free as possible, along with contact numbers of people who could help.

“It’s a relatively simple move that anyone who is concerned about transferring their wealth to their family and making it easy for them, can and probably will choose.”

Dial shared six key documents families need to clean up their finances for a “smooth financial transition.”

Savings, Investments, Retirement and Bank Accounts

An estate planning expert explained that the document should contain an up-to-date list of one’s accounts, what they own and where they are kept, such as their investments, loans, bank accounts and contact details of professional advisers, as well as any debts they have. can have such as credit cards, mortgages, car loans as these will need to be repaid before the estate administration is finalised.

Dale said: “Think about which previous employers have pension schemes that you have and make sure the contact details are there. While you’re doing this, take this opportunity to make sure Get things going to the people you want easily when you die.

“You must designate a beneficiary for a pension policy or death in service insurance from past employees.

“If you have items that may be difficult to dispose of, you may want to have instructions on how to dispose of them. For example, I have a collection of guitars that will be difficult to value and sell, so I am a I have a list of their approximate values ​​and contact numbers of people I trust who will help me sell them.”

Paying Inheritance Tax

Whether reducing inheritance tax is a priority for someone or not, if there is a possibility that they will be liable for inheritance tax on their death it is important that their executor (the person named in the will) ) will deal with the property. Pay it.

Dale said: “IHT needs to be paid before probate is granted, and probate is required before many companies release any assets. This is a problem because executors may need to pay the bill. Don’t have funds.

“The liability for some insolvent assets, including property, can be paid in up to 10 installments over 10 years, but many executors are forced to borrow money to pay the inheritance tax bill.

“Some assets are accessible before probate to pay the bill. National Savings and most banks will pay directly to HMRC to settle the bill. Also any investments held in the trust are controlled by the trustees. And not part of the property.

“They can also often be used to pay a liability. Thinking ahead about what assets will be available and whether they will cover the liability can save a lot of administrative trouble and avoid the cost of borrowing to pay the bill.”

Wills, Trusts and Lasting Powers of Attorney

Britons must include a copy of their last will and any letters of intent, their durable power of attorney (if they have one) and any trusts created with at least two qualified trustees.

Gift records

Executors will need to know what gift is made seven years before someone’s death and possibly within seven years before that gift, in other words up to 14 years before death.

Dale said: “It’s very difficult for an executor to answer unless you keep records of the gifts you’ve made. Records are particularly vital here. The tables that need to be completed are form IHT403. can be found on the Internet

“The best way is to make a copy of the required tables and fill out the form when you go so that there is a record of the gift made.”

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Suppliers and contacts

All utility suppliers, internet providers, car and home insurance, bank details etc. will make it easy to pay the last bills and avoid utilities.

However, Brits should be aware that once the bank learns that the account holder has died, the account can be frozen, but many banks will still be prepared to pay the last of the utility bills, or even release the money for the funeral. , if they are given proof. Of the bills.

Dale added: “My father asked me to help him sort out his investments recently and we got details of investments that had been cashed out a long time ago. Fortunately, my Dad was able to tell me what investments were still available, but it would be more difficult to do so after his death.

“I have to contact each provider to find out what happened with that investment, and many of these providers have been bought by other providers for a long time, so their track records are not always as good as they should be.” That they can be.”

Personal items

Dale explained that discussing difficult topics like death and funeral arrangements with children can be very helpful because they will know exactly what you want after they die.

He recalled a conversation with a close colleague who lost his father last year. Dale said: “He was 90 years old and had been ill for some time, so he had the opportunity to talk to her about these difficult subjects.

“Before he died they had a discussion about what songs he wanted at the funeral, whether he wanted to be buried or cremated and a lot of other things. She said she was really emotional about it. He found it helpful because he didn’t have to worry about these matters because he knew he was doing what his father wanted.

“So even if it seems difficult to have these discussions throughout life, leaving written instructions will be most welcome by your family.”

HM Revenue and Customs pocketed around £700m from inheritance tax last month, an £85m increase on last April.

While only four per cent of estates pay inheritance tax, the latest figures show, the proportion of deaths resulting from inheritance tax is expected to rise to seven per cent by 2032/33.