How to die tidy…
You may find it an honor to be asked to act as the executor of a friend or family member. However, being asked to act as an executor is a huge financial responsibility, and if it is poorly handled, then it can even result in the executor being personally liable.
To help avoid this, aside from writing a will, you can also create a “Die Tidy” log. What this means is you create a document that you update regularly and make sure that your executor is given a copy of each time you update it. This document should include the following:
- Your state pension arrangements
- Your private pension arrangements
- Your National Insurance Number
- Details of any bank accounts along with any standing orders and direct debits
- Details about your mortgage
- Life Insurance Policies
- Hire Purchase Agreements
- Loans
- Vehicle Leases
- Any other financial commitment
- Any debts that you have and the balances due
- A personal balance sheet
- Any ISAs
Though ISAs may be free of both income tax and capital gains tax, they still form part of your estate and have to be included in the inheritance tax calculations when you die. Once you have prepared this “Die Tidy” log, and put any documents that need to go with it, put it with your will. If you keep this in your home, put all of the documents together in an envelope marked “to be opened in the event of my death”.
If you are giving these files to your executor, then there should be a note with the papers that details where they will be able to find all usernames and passwords that they will need in order to access your accounts.
International Investments
If you have any overseas investments, you may want to consider reinvesting that money in UK investment funds that have the same or a similar level of international exposure. This will make your estate much tidier as dealing with international banks, and investment firms can be quite difficult and take a long time for the executor to deal with. If the accounts are all held in the UK, then it is much easier for the executor to settle your affairs.
Choosing an executor
This is one of the most important things you can do when creating your will. You should have at least one executor, but two is better. They should both be people that you can trust with anything – especially money. Ideally, they should be a close friend or family member who is aware of any familial politics, and a professional such as your financial adviser, accountant or your family solicitor.
Review Regularly
Once you have drafted your will and the accompanying “Die Tidy” document, along with any Expression of Wishes, make sure that you are reviewing it regularly and making any necessary changes. Most people make changes after major life events, such as marriage, divorce, civil partnerships, the birth of children, the death of those mentioned in the will. However, it is wise to update documents every two years as a minimum. This will also ensure that your “Die Tidy” documentation remains relevant.
For help creating a “Die Tidy” document or with any aspect of writing your will, contact our experts today and get the assistance you need.