September 27, 2023

E20: What to do when someone dies with Simon Levy, Justin Harper and Jaypee Soule

32 minutes

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As we all know, there are only two certainties in life - death and taxes - and going through the admin when someone dies can be a slow and expensive process. That's why it's a good idea to think about where you'd like your own money and personal belongings to go in advance to avoid making it complicated for those you leave behind.

In this episode, we discuss all the useful things you can do to make sure you've got your own affairs in order - from wills and to life insurance, to pension beneficiaries. We also talk about what's important to address when you're dealing with somebody else's estate.

Helping us to do this are our three expert guests:

Solicitor for Frank Brazell & Partners and Free Wills Month; Simon Levy,
CMO at LifeSearch; Justin Harper, and
PensionBee's Head of Second Line Compliance; Jaypee Soule.

Episode Breakdown:

03:16 Executors and beneficiaries

03:51 Keeping things organised for your loved ones

08:25 Lasting powers of attorney

09:54 Letters of wishes

11:21 Prepayment funerals

12:36 Life insurance

13:21 Inheritance tax

15:29 Pension beneficiaries

18:25 Writing a will

22:06 What are the rules of intestacy?

27:18 First steps when a loved one passes away

28:06 Tell Us Once service

29:37 What's probate?

*We talk about what happens to your pension after death in this episode. We want to be clear that we're referring to defined contribution pensions. Here are a few more things to know:

If the deceased is under 75 years old, and the pension proceeds are paid within two years of the provider knowing of the customer's death, then their beneficiaries can get the money tax-free.
From 2026, if the deceased is under 75 years old, tax may be charged to the beneficiaries if the deceased has reached their lifetime allowance. Find out what the current pension lifetime allowance is.
If the deceased is aged 75 or above, the pension proceeds are taxable at the marginal rate of the beneficiary's income tax.

*We want to be clear that your pension isn't legally considered part of your estate, so isn't covered by your will. However, mentioning your pension in your will may help to eliminate any doubt over your wishes, though it's recommended that you still contact your pension provider to add your beneficiaries to your policy.