How to get your finances in order before you die

Before planning ahead, it helps to understand where you stand right now. 

• Start by reviewing your budget so you know what's coming in and going out each month.  
• Use our Benefits calculator to check you're receiving everything you're entitled to. If you have a terminal illness, special rules mean your claim can be fast-tracked so you get help more quickly. 
• If you have debts, it's important to know they don't disappear when you die as they become part of your estate. Use our Debt advice locator tool to find free, confidential advice near you. Find out how to prioritise which debts to pay first, 
• If you're struggling with money right now, find out about emergency financial help available to you. 
• If you can, try to build up some emergency savings. Even a small amount set aside can make a big difference. 

A will is a legal document that says who should get your money, property and possessions after you die, known as your estate.

Having a will can:  

• let the people you care about sort things out more quickly and easily, with less stress when you're gone 
• let you decide who should care for any dependants, including children under 18, and arrangement for pets 
• help avoid family disagreements  
• make it easier to plan for Inheritance Tax.  

If you own a home with someone and you’re not married or in a civil partnership, they might not automatically inherit your share if you do not have a will. 

• Decide what you want to leave: How do I write a will and how much does it cost?
• Decide who will settle your estate and carry out your wishes, known as your executors. A big part of being an executor is organising the legal and financial duties. It is important to choose your executors carefully: Who can be an executor of a will?

There are lots of ways to write a will, and the right option for you will depend on your circumstances and budget. Take a look at our guides to find out more:

• How do I write a will and how much does it cost?
• DIY (do-it-yourself) wills: how to write your own will
• What is a will-writing service?
• Using a solicitor to write your will.

A letter of wishes can help explain your decisions in your own words. It's not legally binding, but it helps the people you care about understand the thinking behind your choices. 

If you have children or adult dependents, include clear arrangements for their care in your will. Informal arrangements can be misunderstood or legally challenged, so it's important to get this in writing. 

If your dependents will need lifelong care, you may need to set up a trust fund. This usually requires professional financial and legal advice. 

Include arrangements for pets in your will. 

Before naming someone to care for your pets, speak to them first to make sure they can take on this responsibility. 

Depending on the value of your estate (your money, property and possessions), your loved ones may need to pay Inheritance Tax after you die. Understanding the rules and any exemptions that apply can help reduce the burden on them.

If your estate is likely to be liable for Inheritance Tax, for example, if you own a property that you want to leave to someone, it's worth knowing that you can take out a life insurance policy specifically to cover that bill. This means the people you leave behind won't face a large, unexpected tax payment before they can access what you've left them and won't be forced to sell assets like your home to pay it. 

This is a non-essential step for most people, but if you think Inheritance Tax might apply to your estate, it's worth speaking to a financial adviser about whether this approach makes sense for you. 

Funerals can be expensive, but planning ahead can ease the pressure on the people you care about. You can do this by: 

• leaving clear instructions about your wishes, for example, burial or cremation 
• set aside savings in an easy-access account, as most large banks will allow your family/executors to settle the funeral director’s invoice from your accounts after your death
• taking out a pre-paid funeral plan but check the terms carefully, as they're not always good value 
• using a life insurance policy to cover costs. 

Life insurance can help provide for the people who depend on you financially after you die. It can also help cover costs like funeral expenses or outstanding debts. 

There are different types of life insurance to suit different needs and budgets: 

• Term life insurance pays out a lump sum if you die within a set period. 
• Whole of life insurance pays out whenever you die but tends to cost more. 
• Life insurance for over 50s is available if you're older and may not require a medical check – but check the terms carefully, as these policies don't always offer good value. 

If you're employed, it's worth checking whether your employer offers life insurance as part of your benefits package. This is sometimes called "death in service" benefit. 

Critical illness insurance is also worth considering. It pays out a lump sum if you're diagnosed with a serious illness – such as cancer, a heart attack or a stroke. This can be especially valuable if ill health forces you to retire early or stop working, giving you financial support at a time when you may need it most. 

Income protection insurance can help if illness means you're unable to work, replacing some of your lost earnings in the meantime. 

If you already have any of these policies, make sure they're up to date and that your named beneficiaries (the people who will receive the payout) still reflect your current wishes. 

One thing many people don't realise is that you can place your life insurance policy in a trust. This means that when you die, the payout goes directly to the people you've chosen, without having to go through the probate process first. Probate can take months, so putting your policy in trust can mean your loved ones receive the money much more quickly and with less stress. 

It can also be a useful way to manage how the payout is treated for Inheritance Tax purposes. Your insurer or a financial adviser or solicitor can explain how this works for your situation. 

Many pension providers will ask you to fill out an Expression of Wish or Nomination form to name your chosen beneficiaries (the people you want to receive your pension after you die). 

You can do this by: 

• completing a form for each pension you have, so each provider knows your wishes 
• keeping your nominations up to date, especially if your circumstance change (for example, after a marriage, divorce or birth of a child).

Keep a record of all your pensions schemes, including any from previous jobs. If you’ve lost track of an old pension, it may still hold money that can be passed on.  

Make sure to keep a note of all your pension plans, even old ones, so your loved ones know where to find them.

It's worth taking some practical steps now to make sure your loved ones can access money quickly and without difficulty after you die. 

Things to consider: 

Joint accounts: If you share finances with a partner, a joint bank account means they can continue to access money immediately after you die, without waiting for probate to be granted. However, on your death, any joint holder will inherit the balance of the account automatically rather than the funds passing under the terms of your will. 

Inform your bank: Some banks offer a 'nominated person' service, allowing a trusted person to let them know when you've died and begin the process of closing or transferring accounts. 

Keep a record: Make sure your executor has a full list of your bank accounts, savings, investments, insurance policies and any other financial products, along with the relevant account numbers and contact details for each provider. 

It's also a good idea to keep important documents, such as your will, power of attorney and insurance policies, in one place that your executor or loved ones can easily find. 

Your digital footprint includes everything from online banking and email to social media, photo storage and subscription services. Without clear instructions, your loved ones may struggle to access or manage these accounts after you die. 

Create a document that includes: 

• the name of each service or platform 
• your username or email address used for the account 
• where you've stored the password  
• what you want to happen to each account. 

You can store your digital footprint information:

• in a password manager that a trusted person can access 
• in a secure location at home (like a safe or locked filing cabinet) 
• with your solicitor alongside your will 
• using a digital legacy service designed for this purpose. 

Make sure your executor or a trusted person knows where to find this information and what you'd like them to do. 

Review and update the list whenever you open new accounts, change passwords or change your wishes. 

Make sure the people named in your will know where to find: 

• your will and other important documents 
• details of your bank accounts, investments and insurance policies 
• your pension information 
• your digital account list 
• your wishes about long-term care. 

If things feel overwhelming, a financial adviser can help you navigate complex decisions, understand your options and make sure everything is legally sound and as tax-efficient as possible. 

There may be an upfront cost, but good advice now can help you avoid costly mistakes later.