“In this world nothing can be said to be certain, except death and taxes,” Benjamin Franklin wrote in 1789.
More than 200 years later, it couldn’t be truer.
Indeed, financial planners spend the majority of their time advising clients on tax-efficient strategies to maximise their wealth opportunities. And with so many interlacing options, no wonder.
Yet, when it comes to death, we sometimes shy away from the subject.
We’re not the only ones.
According to research from the UK Bereavement Commission, 39% of bereaved people say they found it difficult to get support from friends and family.
Losing someone close can be devastating, and grief is often unpredictable. Having to cope with the emotional turmoil is bad enough. But there are also practical decisions that will need to be addressed.
Don’t assume that bereaved widows will be looked after by their husband’s financial adviser. Statistics shared by Schroders suggest that 70% of women switch to a new adviser following their husband’s death.
With all this in mind, introducing your bereaved clients to a financial planner you know and trust could provide valuable support.
3 meaningful ways we could help and support your clients after the death of a loved one
- Help them deal with immediate pressures
When a loved one passes away, it can be difficult to think straight, but some matters will need dealing with straight away.
A financial planner can work with your client to address any immediate financial obligations someone may have, such as bills, or mortgages.
In these early days, our aim is to remove some of the early pressures, so clients can feel less overwhelmed.
We can help a bereaved client take care of:
- Paying for funeral costs
- Sorting pension payments
- Claiming appropriate benefits.
Having someone you trust to provide the right information, support and guidance in the immediate days of bereavement could help alleviate additional distress.
- Calculate and pay Inheritance Tax
For families with substantial wealth, Inheritance Tax (IHT) is an essential conversation.
As of the 2024/25 tax year, spouses and civil partners do not pay IHT, but anyone else who inherits money could be liable, if the estate exceeds the nil-rate band of ÂŁ325,000.
In respect of property, if a child receives the main residence from their parent, grandparent, or great-grandparent as part of their inheritance, they could benefit from the residential nil-rate band – an additional £175,000.
Essentially, it’s possible for an estate to pass up to £500,000 before IHT becomes due. Where an estate exceeds the thresholds, IHT would usually be charged at 40% (2024/25).
Working out which assets are liable for IHT, and how to pay it, can be complex. This is especially true if the inheritance is part of a larger estate that has been divided between several individuals.
We can help your clients calculate their IHT liability and work through any nuances.
- Talk about planning for the long-term future
With immediate matters and potential IHT considerations sorted, it may be appropriate to contemplate the future.
A financial planner can have open and constructive conversations, covering things like:
- Planning for a change in the household income
- Options for how to handle a large inheritance, if applicable
- The affordability of your future plans, including retirement and later-life care considerations.
Our ultimate goal is to ensure clients gain peace of mind so they can comfortably strive towards their future goals.
Give your clients financial peace of mind
Nothing can take away the devastation of losing someone you love. But unnecessary stress can exacerbate an already difficult period, especially where money is concerned.
Bespoke financial planning could help lift some of the burden.
Forming a relationship with a planner early in life could mean that your clients have a trusted guide. That said, it’s never too late to gain bespoke guidance from an independent professional.
Depending on the circumstances, we work with solicitors, mediators and accountants, providing our specialist expertise to ensure a smooth and collaborative process from beginning to end.
Get in touch
If you’d like to find out more about how we could help and support your clients and their families, please do get in touch.
Email mail@delaunaywealth.com or call us on 0345 505 3500.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate trusts, estate planning, or tax planning.
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