What to expect when a loved one dies and how a financial planner could help

Losing someone close to you is among the most stressful events you can experience in life.

You not only have to face the unimaginable prospect of carrying on without your loved one, but there are also likely to be several practical and financial challenges to tackle.

No matter who has died – a spouse, a family member, or a close friend – being the one left behind is never easy. Consequently, your first priority should be to take care of yourself – be selfish, give yourself time to grieve your loss, and don’t be afraid to ask for help.

There are five stages of grief:

1. Denial and isolation
2. Anger
3. Bargaining (the “if onlys”)
4. Depression
5. Acceptance

Everyone will experience grief differently and the above feelings may occur in any order.

Allow yourself the time to go through them. There is no pre-prescribed time for when your grief will begin to lift. It’s a process – and you need to let things take their course.

At Aspira, we’re here to help support you following the loss of a loved one and have written this article to help you understand some of the practical steps you may need to take in the following days, weeks, and months.

Deal with the essentials

There are a series of practicalities to manage when someone dies.

The first priority is to register the death and obtain a death certificate. In most cases, you'll need to do this within five days of the death and, ideally, at a register office in the area where the person died.

You'll need a certified copy of the death certificate so that you can organise the funeral or cremation and notify the deceased’s bank, pension provider, insurance companies, and other organisations. It’s also useful to have multiple copies of the official certificate because not all companies will accept a certified copy only an original, and if you only have one, you’ll have to wait for it to come back.

How we can help

We often end up having an excellent overall picture of a client’s financial situation. This may mean we can help you understand who you need to notify.

Because we’ll know what protection, savings, and investments a client has, we can help you organise the paper trail. Where necessary, we’ll also be in a strong position to help you deal with financial institutions.

Figure out your loved one’s estate plans

According to Moneyfacts, 59% of UK adults don’t have a will in place (1). When someone dies without a will outlining their last wishes, it can cause complications around estate planning.

Where there is a will, you may be named as executor. If so, you will be responsible for administering the estate. It there’s no will, the next of kin is usually named as the administrator and takes on these duties.

As an executor, you will need to get to grips with your loved one’s financial information and create a clear picture of their assets.

To do this you’ll likely need to track down:

• Bank and building society statements
• Credit card statements
• Tax and National Insurance documents
• State and private pension documents
• Investment certificates
• Car, home, and life insurance policies
• Utility bills
• Property deeds
• A letter from a solicitor detailing the value of any property.

If someone dies without having considered their estate plan, or taking time to organise their affairs, this can be an overwhelming, time consuming, and difficult task. The Government ‘Tell Us Once Service’ can be really useful during this process.

How we can help

If your loved one worked with us, or another financial planner, one of the quickest and easiest ways to gather all the required financial paperwork is to get in touch and ask for help.

We should be well-placed to make light work of finding information and documentation relating to pensions, ISAs, or investments your loved one had. We may also be able to tell you if they held any protection policies, such as life insurance.

With all the relevant documentation to hand, you’ll be ready to build a clearer picture of your loved one’s assets and start administering the estate.

Remember, an executor is personally liable for Inheritance Tax (IHT). This may feel like a huge weight of responsibility, but we can help you understand how to calculate any tax owed and ensure that you pay it correctly.

Seeking support from a financial planner, whether they knew the deceased or not, could help to reduce the stress of being an executor and offer invaluable support at an emotionally difficult time.

Navigate the probate process

Probate is the process of administering a person’s estate after they die. This is where assets are divided according to the deceased will and distributing them as inheritance.

Any debts and IHT will be paid before this.

In most cases, probate is a necessary step, but there are some exceptions. You may not need probate if:

• All assets are left to a spouse
• The total estate is worth less than £5,000
• The total estate is made up of physical cash and personal possessions, such as jewellery, art or cars
• All property is jointly owned, and ownership automatically passes to the other person
• They had a joint bank account, so the money automatically passes to the other person
• The estate is insolvent – there is not enough money to pay debts, taxes, and expenses.

How we can help

We can help you understand whether probate is needed and explain what may be involved. We are here to provide advice and support to beneficiaries and executors as they sort through the probate process.

Recognise that you may be more vulnerable

Losing someone you love may leave you feeling incredibly vulnerable. While there's little you can do to combat this in the immediate, it's a good idea to enlist support from friends or family that you trust.

As you have read, there may be a lot of legal and financial administration to tackle and it's a good idea to ask someone you know well to accompany you to sit in on any meetings you need to attend.

Apart from anything else, your mind may be full of distracting thoughts, and this could make it difficult to recall what was said in the days following the meeting.

Having someone you trust by your side means there will be someone to take notes for you and talk things through with as and when you feel ready.

How we can help

Following a death in the family, we'd always encourage you to have another person present at meetings.

Even if you’ve dealt with the same financial planner or other professional advisers for years, we recommend having someone else present for your own protection, as well as to help make sense of everything.

It’s essential that you never feel pressured into deciding anything. Ensure that you meet with your professional advisers as many times as you need to ask all your questions and reach the right decision.

Don't rush into any big decisions

You have a lot on your plate. While you are coming to terms with your loss and processing your grief, it’s wise to avoid making any big decisions.

Sometimes, clients will speak to us only a few weeks after losing their spouse and already be thinking about selling their home and moving somewhere new.

Of course, it’s fine to start imagining changes you’d like to make, but it’s really important to allow time for the fog of grief to clear before you make any big changes. There’s no harm in waiting for the first few difficult months to pass.

Dealing with your grief is hard enough without the pressure of having to make complex decisions that could affect your future. We’re here to help you prioritise what needs to be done when and to support you through this difficult process.

Get in touch

If you’ve lost a loved one and would like to find out how we can help and support you, please get in touch. Email info@aspirafp.co.uk or call us on 01454 632 495.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Approval no. 190

(1) https://moneyfactscompare.co.uk/news/retirement/three-estate-planning-mi...