Bereavement

Support and guidance for families.

Experiencing or preparing for bereavement can be overwhelming from both an emotional aspect and a practical perspective.

Receiving inheritance combined with the grieving process may be a lot to digest immediately. You might not be ready to make any decisions in the immediate future so the first thing to do is check how much of your cash balances are protected under the Financial Services Compensation Scheme (FSCS).

For UK authorised banks and building societies, you are typically covered up to £85,000 per individual, per institution. The following link to the FSCS website will provide you with further information on this as well as access to the FSCS Bank & savings protection checker tool.

Knowing your capital is safe in the first instance could help provide some breathing space for you to work out what is next.

How we can help

Our consultants will be there to help you during this difficult time, whether this involves action or simply involves understanding what you have currently, knowing that you are financially stable allows you to focus on your emotional wellbeing.

Clarity

You may not have been 'hands on' with the family finances, so having to take control all of a sudden could feel very stressful during this time. Our consultants can help provide additional support on all finances.

Transparency

We can review assets neutrally and help when confusion may arise. Understanding your cashflow, asset base and the fiscal implications of the decisions you make can help secure your future and help facilitate clear decision making.

The steps outlined below can provide some structure on actions to take next.

Register: the death within five days in England (different timescales apply to different parts of the UK so please check these). You will need to obtain a medical death certificate from either the hospital or doctor and then complete the official registration at a register office. Upon completion you will also get other relevant documents such as a burial certificate. Find a register office

Locate: the most recent Will (if there is one). Solicitors are likely to have a copy of this on file but we can also hold a copy for existing clients, do not hesitate to contact us if you are struggling to locate it. Final wishes may be recorded in the will regarding the funeral, charities and chattels, so it could be useful to look over the will before finalising any arrangements.

Inform: there may be many people who need to know the deceased has passed. Letting family and friends know in the first instance can be one of hardest stages of the process, experiencing others grief along side your own can be emotionally challenging. You will also need to inform third parties such as banks and the relevant government departments What to do after someone dies: Tell Us Once

Assets: CroweFPUK will have an understanding of the asset base of existing clients, any outstanding liabilities and any inheritance tax planning undertaken to date including financial gifts for existing clients. In addition to this, going through all documents, files or paperwork the deceased held will take time but help paint a clear picture for you as executor.

Inheritance Tax: now you have a clear picture of the estate, you will need to work out if inheritance tax is due. Our 'Inheritance Tax: Could it impact you' article provides more information.

Probate: not every estate needs to go through probate and working out if this applies to the deceased’s estate is an important part of this process. Probate procedures vary in length depending on the complexity of the estate; with more complex estates taking more time along with other assets which may be harder to sell. You can administer probate yourself or you can appoint a professional to undertake probate for you, but this will incur charges.

Assess: You may be entitled to non means tested bereavement benefits from the government, known as Bereavement Support Payment (BSP) which you can check on the government website. Bereavement Support Payment: How it works | Bereavement Advice Centre | Bereavement Benefits.

Mail Suppression: you can reduce the amount of junk mail received via this service to reduce any undue distress Bereavement Advice Centre | Junk Mail Suppression Service.

Ask for help if you are struggling, there are many services out there that are experienced in dealing with bereavement and how it may uniquely impact you. Do not suffer alone as the right support can be invaluable during this turbulent time.

Further information on areas that may need consideration

Is there a Will outlining the distribution of the estate?

The will may also contain instructions regarding the funeral and wishes on distributing more personal items, earmarked for certain individuals. Intestacy is when there is no valid Will in place.

Please note assets in trust such as most pensions belong to the Trustees and not the estate, therefore it’s important to have nominated death beneficiaries as they cannot be bequeathed in a Will.

If there isn’t a will that can be located, the estate will be subject to intestacy rules. Please see more details around this on the government website Intestacy - who inherits if someone dies without a will? - GOV.UK (www.gov.uk).

As at December 2023 there are 6147 unclaimed estates which are managed by the Bona Vacantia government department.

Probate

Can be applied for 20 working days following the submission of the IHT400 form and is the process in which someone is able to legally deal with a deceased estate. In the UK and Wales, if the deceased owned ‘significant assets’ solely in their name you may need probate to be able to settle an estate.

More information can be found at the below link. Applying for probate: What is probate

If there is a Will, grant of probate will be applied for by the executors, if there is not a Will grant of letters for administration are applied for by close relatives. Once granted, you can administer and distribute the estate as per the wishes in the Will or through intestacy rules if there is not a Will.

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Disclaimers

Crowe Financial Planning UK Limited is authorised and regulated by the Financial Conduct Authority (‘FCA’) to provide independent financial advice.

The information set out in this publication is for information purposes only and is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. It does not constitute advice to undertake a particular transaction. Appropriate professional advice should be taken on specific issues before any course of action is pursued. Any advice provided by a Crowe Consultant will follow only after consideration of all aspects of our internal advice guidance.

Past performance is not a guide to future performance, nor a reliable indicator of future results or performance. The value of investments, and the income or capital entitlement which may derive from them, if any, may go down as well as up and is not guaranteed; therefore, investors may not get back the amount originally invested.

The Financial Conduct Authority does not regulate Trusts, Tax or Estate Planning.

Please be aware that by clicking onto any links to third party websites you will be leaving the Crowe Financial Planning website. Please note that Crowe Financial Planning is not responsible for the accuracy of the information contained within the linked sites.