Dying Tidily: Ensure Your Affairs Are In Order

What do Aretha Franklin and Prince have in common, apart from being very talented singers, songwriters, and musicians?

Well, they both died intestate (without a legal will), leaving a very complicated and difficult situation behind them in terms of settling their affairs.

How could this happen I hear you ask. Surely, with the army of advisors around them, this was easily avoidable?

Unfortunately, the issue is often with the person themselves. People don’t like to consider their own mortality. They just don’t want to think or talk about it…

Dying Without Making a Will

So, then you need to consider, what is the impact of dying without making a will? I suggest you talk to anyone who has been through the loss of a partner or parent who died intestate. They will confirm the difficulties this causes.

If you die without leaving a will, then your estate will be distributed in accordance with the law of succession. This may be totally at odds with your own wishes.

Also, as there would be no executor of a will in place to handle your affairs, one of your family members will have to apply to the Probate Office to be accepted as your Administrator.

This all takes time, during which bank accounts/ARF payments will be frozen and access to other investments in your name will be closed. The potential for family disagreements also escalates due to lack of clear instructions. This is all going on while they’re still mourning.

A Common Occurrence

Unfortunately, this is a common occurrence. According to the Law Society of Ireland, back in 2019, it was estimated that only 27% of people in Ireland had made a will.

This compares unfavourably to other countries, where it’s also a significant issue. In the UK the figure was 39%, while it is estimated that two thirds of Americans die without having a will in place.

Death & Taxes

Dying intestate is unfortunately only one issue to be avoided. We want you to leave happy memories when you die and not a list of problems behind you.

It’s for this reason that we’ve made ourselves comfortable discussing the uncomfortable (but inevitable) subjects – death and taxes.

We place a lot of emphasis on ensuring your wishes are easy to carry out should you become incapacitated or after your death.

Legacy and estate planning should be carried out many years before your death (in so far as possible). Everyone, regardless of age and health, should spend some time considering a plan for when they die.

The sooner you start thinking about your estate plan, the more tax efficient you can make it and the less head space it takes up. Once you’ve started the process, it tends to be a relief and less daunting than you imagined.

Your Everlake financial plan is always created with later life, death, and legacy planning in mind. In turn, when creating your will it’s useful to look at the tasks from various perspectives, including a financial planning one.

Pension Considerations

In the case of pre retirement pensions you can request a ‘Letter of Wishes’ or ‘Expression of Wishes’ letter from your pension provider. This will allow you to nominate a beneficiary in the event of your death. This means that they will not have to wait until probate is completed before receiving any payments due.

Enduring Power of Attorney

Consider also for a minute the impact of you and your partner becoming unable to manage your affairs because of a bad accident or death.

An Enduring Power of Attorney is a legal process by which someone you appoint can legally step into your shoes. They can manage your affairs on your behalf should you become incapacitated.

However, it is estimated that only 6% of Irish people have put one in place. Without one, it is incredibly difficult for your family to manage your affairs, follow your care preferences, and access your financial resources.

Practical Considerations

But even at a simpler level, would your children know who to call if something happened to you? Would they know where to find valuable documents and relevant passwords? What would you want them to do with your social media accounts for example?!

If you have young children or children with special needs, what are your guardianship preferences? Have you discussed this with family (or a close friend if that’s your preference) and has this been stated in your will. These are all important issues that require careful consideration.

How can we help?

We’ve put our collective Everlake heads together and created a checklist for you to complete and leave for your partner, family, or a friend.

In the event of your death or incapacity, this list will help them to understand your wishes and carry them out, without being left in a spin.