Life Insurance

[JulieB]

I kinda disagree. people have the same attitude.. "it will never happen to me bud" and it invariably does...not just life insurance but also other forms of pro

tection like permanent health insurance etc. Also most life insurance plans cover the option for some critical illness cover which is far more likely to happen.

Each individual has to weigh up their own cicumstances and ask the questions "What If".... now it maybe in one case that no life cover would be necessary it's already covered... but in many cases I don't think it's fair to expect a family to be forced to assist in case of a death. In many cases that just wouldn't be an option.

If someone is single then it's not really an issue lest having enough liquid assets to pay for a funeral and say your beneficiaries could sell a house that you had a mortgage or debt secured on it and didn't want it to be covered if you died.

All I'm really saying is that a death can cost a family far more than a car crash, if you've not planned adequately for it. we plan for car crashes so we should surely plan for death. It's prudent.

[YankeeinMadrid]

Make a WILL THEN especially if you have liabilities cover them with life cover.... decreasing is the cheapest for a repayment mortgage and it's not alot a month at all. Starts from about £5. Families don't always have enough to even pay for Funerals now as they cost many thousands.

If applicable WRITE life insurances into a Trust Deed! Most life offices provide them free of charge. Two of the biggest causes of death in the UK for Males in particular are road traffic accidents & suicide. BOTH events require inquests to be held, and you can't obtain a death certificate off the coroner until the inquest is over. In some cases inquests can happen months even years after a death. Life offices won't release proceeds from a policy until the death certificate is produced. If the plan is written in Trust the life office pays out within days with just a short note from the Coroner. Also if in Trust the proceeds don't form part of your estate on death, which can avoid Inheritance tax.

That's the very least you can do for your loved ones.

Having been involved in estates where the main breadwinner died intestate, without any cover for his family, I've seen first hand the problems and the heartache this can cause.

Just sit back & think...What if?

What would be the financial consequences........

If I were to die......my wife were to die? How would the other cope?

One of us got a serious life threatening illness?

One of us couldn't work due to accident or sickness, how long would we get paid by our employer?

We got made redundant?

Who would look after the kids if we both died say in a car accident? If we haven't put that in a Will then the state could decide....etc etc...

Writing a Will and getting Life cover to provide for your family does not mean you're going to die.... it just means you've been wise and planned for one of those worst case scenarios.

I second most of this. Dying intestate, if you have a spouse and or children that depend on you financially, is selfish.

[mjmooney]

Make a WILL THEN especially if you have liabilities cover them with life cover.... decreasing is the cheapest for a repayment mortgage and it's not alot a month at all. Starts from about £5. Families don't always have enough to even pay for Funerals now as they cost many thousands.

If applicable WRITE life insurances into a Trust Deed! Most life offices provide them free of charge. Two of the biggest causes of death in the UK for Males in particular are road traffic accidents & suicide. BOTH events require inquests to be held, and you can't obtain a death certificate off the coroner until the inquest is over. In some cases inquests can happen months even years after a death. Life offices won't release proceeds from a policy until the death certificate is produced. If the plan is written in Trust the life office pays out within days with just a short note from the Coroner. Also if in Trust the proceeds don't form part of your estate on death, which can avoid Inheritance tax.

That's the very least you can do for your loved ones.

Having been involved in estates where the main breadwinner died intestate, without any cover for his family, I've seen first hand the problems and the heartache this can cause.

Just sit back & think...What if?

What would be the financial consequences........

If I were to die......my wife were to die? How would the other cope?

One of us got a serious life threatening illness?

One of us couldn't work due to accident or sickness, how long would we get paid by our employer?

We got made redundant?

Who would look after the kids if we both died say in a car accident? If we haven't put that in a Will then the state could decide....etc etc...

Writing a Will and getting Life cover to provide for your family does not mean you're going to die.... it just means you've been wise and planned for one of those worst case scenarios.

I second most of this. Dying intestate, if you have a spouse and or children that depend on you financially, is selfish.

Is it? I always thought it only really matters if there are some special considerations (e.g. you want stuff to go to Battersea Dogs' Home, or one child more than another, etc.) If you die intestate surely the default is that whatever you have goes to spouse and/or children anyway? Which is what I want. Who else could get it?

I've got **** all beyond a big record collection and half a house, anyway.

[gregavfc]

By the way guys, anyone who fancies setting up some cover for themselves, I'm only too happy to help

[JulieB]

Is it? I always thought it only really matters if there are some special considerations (e.g. you want stuff to go to Battersea Dogs' Home, or one child more than another, etc.) If you die intestate surely the default is that whatever you have goes to spouse and/or children anyway? Which is what I want. Who else could get it?

I've got **** all beyond a big record collection and half a house, anyway.

The laws of intestacy vary between England & Wales, NI, & Scotland.

Don't forget everything like bank accounts/ISAs belonging to the deceased are frozen on a death. Only funery costs can be accessed immediately. If you die intestate it just creates more mess, which family have to sort out with the probate office. Recently banks and financial institutions have been hauled over the coals for holding onto dosh after death.

If you're not married dying intestate can be disastrous for the partner who may have to go to court to fight over assets that aren't jointly held with the deceased.

If you are married a spouse is only entitled to a certain amount of assets unless they're jointly held, thereafter the children or other relatives can be entitled. In some cases this has caused houses to have to be sold.

If Inheritance tax is payable then that has to be paid as a primary debt on the estate. An effective Will can mitigate IHT liabilities in most cases.

Also if both parents died intestate, say in a car crash and no directions on who will look after any dependent children... the state will decide, which may not be what you or the children would have wanted. That could mean them taken into care.

Again it's only prudent just to think about a worst case scenario.

Only about 30-40% of the population have valid Wills in place. Of those about 30% of these will be invalid because they've not been witnessed correctly, or can't be found on death because no-one knows where the Will is kept. I've given my chosen executors a card to tell them where my Will is stored. I have been amazed to find just how many very wealthy individuals, I've come accross do not in fact have a Will. It's crazy!

Don't forget Lasting Powers of Attorney as well. Especially with elderly relatives these documents can be invaluable if they are required if someone becomes incapacitated.

[mjmooney]

Is it? I always thought it only really matters if there are some special considerations (e.g. you want stuff to go to Battersea Dogs' Home, or one child more than another, etc.) If you die intestate surely the default is that whatever you have goes to spouse and/or children anyway? Which is what I want. Who else could get it?

I've got **** all beyond a big record collection and half a house, anyway.

The laws of intestacy vary between England & Wales, NI, & Scotland.

Don't forget everything like bank accounts/ISAs belonging to the deceased are frozen on a death. Only funery costs can be accessed immediately. If you die intestate it just creates more mess, which family have to sort out with the probate office. Recently banks and financial institutions have been hauled over the coals for holding onto dosh after death.

If you're not married dying intestate can be disastrous for the partner who may have to go to court to fight over assets that aren't jointly held with the deceased.

If you are married a spouse is only entitled to a certain amount of assets unless they're jointly held, thereafter the children or other relatives can be entitled. In some cases this has caused houses to have to be sold.

If Inheritance tax is payable then that has to be paid as a primary debt on the estate. An effective Will can mitigate IHT liabilities in most cases.

Also if both parents died intestate, say in a car crash and no directions on who will look after any dependent children... the state will decide, which may not be what you or the children would have wanted. That could mean them taken into care.

Again it's only prudent just to think about a worst case scenario.

Only about 30-40% of the population have valid Wills in place. Of those about 30% of these will be invalid because they've not been witnessed correctly, or can't be found on death because no-one knows where the Will is kept. I've given my chosen executors a card to tell them where my Will is stored. I have been amazed to find just how many very wealthy individuals, I've come accross do not in fact have a Will. It's crazy!

Don't forget Lasting Powers of Attorney as well. Especially with elderly relatives these documents can be invaluable if they are required if someone becomes incapacitated.

That just seems to confirm what I thought. We're married, house (in joint names) is very nearly paid off.

I personally have naff all in savings (at the moment, although there will be a lump sum when I retire), she has a few grand.

Two grown up daughters. That's it. No previous spouses, no parents, no wish for our money to go anywhere other than to each other and/or the girls.

So I assume the only thing we would have to worry about is how much the state takes, no?

[leviramsey]

Ned... Ryerson!

[JulieB]

So I assume the only thing we would have to worry about is how much the state takes, no?

Possibly but on a joint basis as Nil Rate Band is now transferable IHT is not an issue unless the estate is more than £650K

[kingphil]

My wife and I made a will earlier on this year which gave clear instructions as to who we would want to look after our daughter, if both of us went at the same time, and obviously how to share our estate.

I'm kind of glad I stumbled upon this thread, as it made me realise that the only two people that know where our will is stored, and where copies of the will are kept is myself and the wife !!!!

I've therefore made a few copies, and will provide these to the people I've declared as executors of the will.

[mjmooney]

So I assume the only thing we would have to worry about is how much the state takes, no?

Possibly but on a joint basis as Nil Rate Band is now transferable IHT is not an issue unless the estate is more than £650K

Sorry, didn't understand a word of that. Bear in mind that when it comes to financial things I am pre-school remedial.

I know we're not worth 650 grand though.

[JulieB]

So I assume the only thing we would have to worry about is how much the state takes, no?

Possibly but on a joint basis as Nil Rate Band is now transferable IHT is not an issue unless the estate is more than £650K

Sorry, didn't understand a word of that. Bear in mind that when it comes to financial things I am pre-school remedial.

I know we're not worth 650 grand though.

Apologies - every person in the UK is allowed to die with an estate valued at £325,000 before Inheritance Tax (IHT) is levied by HMRC. This allowance is called the Nil Rate Band (NRB). Anything over that amount is charged at 40p in every pound . Any couple, if married, even if a partner is deceased now has a joint NRB to use of £650,000.

Assets transferred to a Spouse on death are exempt from IHT at that time.

There's lots more to IHT, gifting, NRBs etc but just to try & keep things simple.

[mjmooney]

Thanks Julie, that's slightly clearer. I think I'll Google inheritance tax for more info, because I'm still not sure whether we need to worry about it or not.

[JulieB]

If you have an estate well below £650K, then you shouldn't have anything to worry about as long as you're married.

Sorry it's so complicated Mike....I don't think anyone, anywhere could have dreamed up a more complex, convulated system of tax and pensions as the UK.

Still it keeps people like me in business unpicking it all, so shouldn't complain!