27/09/2021
The COVID-19 pandemic has a lot of people reprioritising, and it's meant a lot of difficult conversations around life, money and the people we love. I believe that it's more important than ever to ensure your loved ones – whether you're married, single or in a relationship – feel secure.
It shouldn't be, but financially protecting the people in your life can be tricky, especially depending on your relationship status. That's why I believe there are a series of conversations that you should be having around planning your estates.
Choosing your beneficiaries, guardians and how to divide your accumulated wealth is tough, but we shouldn't shy away from talking to the people we want to inherit from our estate.
Whether it's your parents, your children, your spouse, your partner or other relatives, identifying the people who will help carry on your financial journey is paramount, and that means putting your wishes in writing through a Will.
Without a properly drafted Will, there are potentially major legal implications for your intended heirs. If you die without leaving a valid will, your estate will be distributed amongst your surviving spouse, children, parents or siblings in accordance with a set formula. This means that loved ones that you would want to inherit from your estate may not be catered for- for example, unmarried partners will struggle to claim from an estate, regardless of how long they had been in a relationship with the recently deceased. While there have been some Court Judgement developments around this, one can avoid worrying about the court system entirely if there's a valid Will in place.
Also important is ensuring that your debt is settled.
Debt management means having liquidity in your estate after you pass away. One of the easiest ways to ensure liquidity and a coverage of outstanding debt is through life insurance. Investing in a life policy means that a pay-out could potentially cover your debts and allow your family to inherit the remainder.
Planning for the future isn't always easy, but the peace of mind you can get from having these conversations with your partner or other family members, with guidance from a Financial Adviser is priceless.
