Assistance with Personal Affairs after death

Crazycat89

Good Morning All,

I’m wondering if anyone can help with a query I have regarding assistance for dealing with my personal affairs after death. 

The request is a bit more complicated in that I am also wondering if this could cover; life insurance dealings, pension, mortgage pay off, as well as any financial accounts I had (energy, water, etc). 

Basically my partner has Autism and would significantly struggle to manage such situation and affairs after my death. We do not have any family members that could assist and I wondered if this was something that a solicitor might do if appointed?

I want the process to be as stress free for my partner and therefore wondered if, or what options might be available?

Thanks in advance!

Keep_pedalling

It sounds like the most suitable option is for a will that creates a trust for your partner should you die first. The main difficulty here if finding suitable trustees. You should consult a STEO solicitor regarding drafting a suitable will. 

You should also get Lasting Powers of Attorney in place to cover you becoming mentally incapacitated through accident or illness. 

Keep_pedalling

One other point, you say partner so I presume not married or in a civil partnership. This creates another problem if your assets exceed £325k in that IHT would be payable on your death. 

Jowwie

Possibly also guidance from National Autistic Society?

https://www.autism.org.uk/advice-and-guidance/topics/benefits-and-money/personal-finances/planning-for-the-future

elsien

Would it not be the role of an executor to sort that out so if you appointed a solicitor as executor most of the bases should be covered.
Although obviously there will be a cost to that.

Crazycat89

Thank you this is all really helpful. We are not married, is it just physical assets that are affected by IHT or would this include cash payments for life cover and pensions?

And I don’t mind any fees for solicitors if they can provide the resolution required.

elsien

I think pension lump sums after death fall outside of the estate so that may be something that an executor wouldn't necessarily deal with. Would your partner be able to cope with some aspects if there were detailed instructions to follow? 

Marcon

Crazycat89 said:

Thank you this is all really helpful. We are not married, is it just physical assets that are affected by IHT or would this include cash payments for life cover and pensions?

And I don’t mind any fees for solicitors if they can provide the resolution required.

It does make life a lot easier for the surviving partner if you are married or in a civil partnership....and could give an automatic entitlement to a spouse's pension, depending on the type of pension arrangements you have. Pensions generally fall outside the estate, as do life policies written in trust, but other non-physical assets such as cash savings are within the estate.

Having a solicitor as your executor would make a lot of sense, but what would really help your partner would be doing your best to leave your affairs in good order. A really good starting point is a list of 'where to find...' including all your bank/savings accounts, computer and phone passwords - the everyday things which are fine while you're around to deal with them or answer the question 'Where....?'. The more information your partner can easily provide the less stressful for them, and the lower the fees being charged by the solicitor.

Not sure how creating a trust would help, unless your partner is incapable of managing their own finances, in which case it would be a very good idea indeed!

Savvy_Sue

elsien said:

I think pension lump sums after death fall outside of the estate so that may be something that an executor wouldn't necessarily deal with. Would your partner be able to cope with some aspects if there were detailed instructions to follow? 

Pension lump sums and life insurance usually fall outside the estate, if they were written 'in trust' - do make sure that your partner is a named beneficiary. Basically it means the trustees of those schemes have discretion: usually they will pay out to the named beneficiary, but they don't have to, and there might be good reasons not to. So just as a random example, if you had started your pension before your partner was on the scene and nominated nieces and nephews, then should the payment go to them, or your partner who could argue that he needs the payment? 

It's something that can easily be forgotten: one of my boys has recently broken up with a partner of several years, and did not think he'd nominated them for the pension scheme, but he had. Should DS die young, it will be harder for the former partner to argue that they should receive the pension if they are no longer nominated. 

pjs493

Savvy_Sue said:

It's something that can easily be forgotten: one of my boys has recently broken up with a partner of several years, and did not think he'd nominated them for the pension scheme, but he had. Should DS die young, it will be harder for the former partner to argue that they should receive the pension if they are no longer nominated. 

This is quite key. My husband had a very acrimonious divorce from his first wife that dragged on and on - he spent more time trying to get out of the marriage than he actually spent living in it as man and wife. When things started getting messy he made sure that he changed the beneficiary on his pension scheme so that if he died in an accident, his soon-to-be ex-wife wouldn't automatically get his death in service benefit and pension, he also changed his Will for the same reason.