When dealing with grief the last thing you want to have to worry about is money
There is nothing we can do to lessen the terrible pain of losing a loved one. It can be a dark and frightening time and the last thing you want to have to do is think about your money – but sadly it just can’t be avoided.
As you face your emotional loss and a different future, it can make things so much harder if you are struggling alone with managing the finances for the first time, having to manage on considerably less money than you may be used to, or perhaps worse still, have no idea of what your financial circumstances are or where to find the information.
So we thought we would provide some tips so that you can make sure you never find yourself in this situation or, if the worst has already happened, and you are unprepared, what you need to do now to help to relieve the financial pressure.
3 essential steps you need to take
Write a disaster plan. Collate all your financial information so that you know what you have, how to access it and what it is worth. Make sure you both know the detail and where you keep all the information so you know how to manage your affairs in the event of your other half not being there. We’ve designed a document called the Magenta Manual to collate all this type of information. Contact us if you would like to receive one.
There are some practical and legal considerations you must take care of. Ensure your Wills are up to date and you know what your partner’s wishes are, and think about getting a Lasting Power of Attorney. Then consider whether you need to make provision for funerals, dependants, pets etc, all of which involve some serious and open conversations about your wishes. It might feel a little awkward, but if your partner does die unexpectedly, you’ll be extremely relieved that you took the time. Magenta can help with arranging these documents for you.
Take time with a financial planner to help you get a clearer understanding of what you may want from the future (with or without your partner) and how to make sure you achieve it even in the event of the unforeseen. Ensure your investments and assets are invested in the right way so that they’ll meet your needs, whatever happens and make sure you talk about Inheritance Tax and any planning that could be done to mitigate your liabilities.
I didn’t plan and now it’s too late
If you find yourself in this situation, don’t worry, help is at hand. The first thing you need to do is identify someone you can trust, who has experience and empathy, who can see the bigger picture but who is uninvolved and who is prepared to take as much time with you as you need to make sure you’re financially secure.
We are more than just financial planners
Unfortunately when it comes to a loved one’s death, finances are one of the most urgent and important things you’ll need to get to grips with. If you quickly find the right financial planner with the right skillset and experience for you, this will ensure you can delegate the complexities of your finances to someone, shifting this large burden from your shoulders and allowing you some much needed space.
At Magenta, we will:
Help with the essential and sometimes urgent financial decisions which need to be taken in the days or weeks after your loved ones death.
Listen and take time at the outset to understand your situation. That means looking back at what your lifestyle was and looking forward to what you hoped your future would and will still look like.
Investigate, identify and explain what your financial situation is in easy to understand language, including what that actually means in terms of how you can live in the future. That may mean helping you track down assets your partner held and this should involve some careful cash flow planning.
You will have all sorts of questions at this stage, such as, have I got to sell the house? Can I afford my lifestyle? What’s going to happen to me as I grow older? We can help you understand your position and how things will look.
Advise you as to what, if anything, can be done to improve your current financial situation and what to do with any lump sum payments you may receive.
Monitor your assets for you to make sure they stay on track and keep you informed so it’s one less thing for you to worry about.
Whatever the future holds for you, don’t let financial worries be part of it.
At Magenta, whilst we can’t bring back your partner, we can offer you a friendly face and valuable help, advice and assistance throughout this difficult time. You don’t have to manage everything alone and we understand that it’s not all about money.
If you need to speak to us, or you know someone we can help, please do not hesitate to call for a chat.