An interview with
Paul Mullin
Paul Mullin is a seasoned Chartered Financial Planner and Fellow of the Personal Finance Society at Amber River True Bearing, dedicated to strategic financial planning and securing his clients’ financial futures.
Bereavement is a challenging time that we’ll all face at some stage. In my role as a financial adviser, I've supported many families through bereavement, and this has given me an insight into the challenges people face during such times. I'm here to offer advice on what you can do to prepare for a bereavement and make a very difficult time a little easier.
Here are Paul’s eight practical steps to help you prepare for a bereavement.
1. Talk about it
It’s not a pleasant topic, but death is a part of life. Having practical conversations about what will happen when a partner passes away and how the survivor will manage is crucial. These discussions are essential for preparing yourself mentally and financially for the eventuality.
2. Share information
From my experience, it’s common for one person to handle the finances in a relationship. If that person dies first, it can leave the survivor with not only grief but also significant confusion and worry. It’s vital to share details of bank accounts, pensions, investments, and household expenditures with each other to avoid this.
3. Make a list
Having one document that includes all important financial accounts like bank accounts, credit cards, pensions, and investments can significantly ease the process of organising the estate. Having your paperwork in order will help on a pragmatic level, avoid unnecessary stress and which can help maintain the mental wellbeing of the person left behind. Make sure you store this document securely, whether it’s in a digital or physical format, and avoid listing any account passwords.
At Amber River True Bearing we understand how difficult it is to keep all your financial information up to date and in one place, so we have introduced a ’When The Time Comes’ checklist for our clients. We encourage them to let family members know where this list/document is kept, and even suggest that a copy is passed to them for safe-keeping.
4. Make sure your Wills are up to date
Checking your Will to ensure it reflects your current wishes is vital, not just for what happens to your estate on death but also in terms of who the Executors are. They have legal responsibility to ensure the estate is dealt with according to the Will. Revisiting and possibly revising this document if it was drawn up years ago is good housekeeping, and make sure your executors know where it’s stored.
5. Think about the household budget
When a partner passes away, spending will not simply be reduced by half. Most household bills will stay the same, although leisure and holiday spending will likely decrease. Using cashflow modelling, I usually reduce the annual spending for two by 20-25% to assess what’s affordable for the survivor. Life will eventually find a new normal, but it can take time.
6. What income will continue?
Understanding what happens to the income of the deceased is crucial. Will any pension income continue in full, reduce by 50%, or stop completely? Are there older state pension benefits to consider? Will any benefits cease? These are important questions that will require some investigation with pension and investment providers, and possibly the Department of Work and Pensions (DWP). This information will clarify what income will be available to cover the survivor’s spending needs.
7. Prepare for the probate wait
Dealing with the estate through probate in the UK can take months, not weeks. The system is somewhat archaic, and obtaining the legal document needed by most institutions before they will release assets can be a lengthy process. Mentally and financially preparing for this period will make it easier than it would otherwise be.
8. Consider your support network
Family and friends will be a source of great comfort and help to you through a bereavement. Some may have been through it themselves and can offer guidance. Additionally, experienced legal and financial professionals can provide support if needed. It’s wise to ask your network for recommendations, particularly if they have dealt with advisers during a bereavement before.
These steps won’t eliminate the pain of losing a loved one, but they can help you prepare for a bereavement and reduce the burden of the practical realities that follow. Planning ahead can offer some peace of mind during a deeply emotional time.
Amber River Financial Planning
At Amber River, our team of independent financial advisers, including myself, are here to help you navigate these preparations to ensure you’ve taken all necessary steps. We understand the emotional weight and complexity involved in planning for bereavement, and we’re committed to providing not just expert advice but also compassionate support.
Get in touch
To set up an initial appointment with Paul or an Amber River financial planner in your area, call 0800 915 0000, or alternatively use our contact form here.
Disclaimer
The information within this article was correct at the time of publishing, but laws and tax rules are subject to change. Your circumstances and where you live in the UK may also have an impact on your tax treatment.
To learn about the government’s most recently-announced changes, please read our latest budget roundup: 2024 Autumn Budget Update
