Turning to the future
When someone close to you dies, it can focus your mind on your own financial affairs, or change your situation so significantly that you need to update your plans. As you begin to come to terms with a bereavement and start to think about the future, you may wish to consider the following issues.
Making a will
Dealing with the affairs of a loved one who has died emphasises how important it is for family and friends that there is a valid will. If you have not already made your own will, you may decide now is the time to do so. Or you may need to update an existing will, particularly if you have lost a partner or child. For more guidance, you can contact your solicitor or a special will writing service.
Dealing with the affairs of a loved one who has died emphasises how important it is for family and friends that there is a valid will
Reducing the effect of inheritance tax
Inheritance tax means the tax authorities can take a big slice of your estate when you die, unless you have planned carefully. Inheritance tax is due on estates valued above £325,000, at a rate of 40% on the amount over this threshold. To find out more about Inheritance tax, visit HM Revenue and Customs.
Will your pension be enough?
If you have lost your partner, you may wish to review your personal pension arrangements to check whether your retirement plans are still viable, or whether you need to increase your contributions. You can do this by consulting your pension provider.
Protecting what's important
It's a good idea to check your insurance policies to make sure they are right for your new circumstances. If you had life cover jointly with your deceased spouse or civil partner, talk to your provider about adjusting the cover, or shop around for a new policy.
If the death has left you as the main breadwinner, you may also decide to take out extra insurance such as critical illness cover or income protection cover. These products help provide financial peace of mind if you are unable to work due to illness or injury.
You may be entitled to bereavement benefits
If the death of a partner means you have lost your main household income, you may be entitled to financial help from the state. In England and Wales, bereavement benefits are paid by the Department for Work and Pensions to widows and widowers or to a surviving civil partner.
Bereavement benefits that you may be entitled to include:
- Bereavement Payment – a one-off lump sum you claim when your spouse or civil partner dies
- Widowed Parent's Allowance – if you have dependent children
- Bereavement Allowance – if you don't have dependent children
Find out more at the Government website or read the Department for Work and Pensions guide Support after a death, practical help when someone dies. You can download this at www.dwp.gov.uk or get a copy from your local register office or Jobcentre Plus.
Coping with debt
When someone dies with debts, it can create enormous pressure on those left behind.
Any outstanding debts, such as loans, will have to be paid off using the money in the estate. Unless the person who died had credit card repayment protection insurance, any outstanding balance on credit cards must also be paid.
If paying off the debts of a deceased relative has left you with money worries, talk to your bank for advice and support. You can also get help from a Citizens Advice Bureau - search for your local branch at www.citizensadvice.org.uk. Or the Debt Advice Foundation has a free helpline: 0800 043 40 50.
Where to get more information
Check if you qualify for advice
If you have £50,000 or more in savings and investments, you may be eligible for HSBC Premier Financial Advice. See the full eligibility criteria.
If you don't qualify for HSBC Premier Financial Advice or if you'd rather not pay for advice, see other ways we can help.
Eligibility requirements
HSBC Premier Financial Advice is available to UK residents who have £50,000 or more in Savings and Investments and who are at least 18 years old at the time of the initial consultation.
You'll also need to have an HSBC Current Account or Savings Account for us to be able to deduct your fee. We can accept payment from a first direct Current or Savings Account too.
To find out more:
- See our HSBC Premier Financial Advice
- Call us on 0800 328 1298 to book an initial no-obligation consultation with a Premier Client Manager. Lines are open Monday to Friday 8am to 9pm and 9:30am to 7pm on Saturday. (Textphone: 18001 0800 028 0126).
If you don’t qualify for HSBC Premier Financial Advice, or if you’d prefer not to pay for advice, see other ways we can help.
If you are not a UK resident, see our HSBC Expat service.
HSBC will writing service – our experienced team of advisers can help you write your will. We also provide professional and impartial executorship services.
The value of your pension can fall as well as rise and you may not get back the amount you invested. Pensions contributions are normally tied up until you take your retirement benefits.
HSBC insurance – we have a wide selection of insurance products including life cover.
Solicitors – ask for recommendations from family and friends, or try www.lawsociety.org.uk
