Coping with Loss and Navigating the Financial Implications

Losing a loved one is an emotionally challenging experience, and amidst the grief, managing financial matters can feel overwhelming. At Stringer Mann Chartered Financial Planners, we understand the complexities that arise during such times and are here to provide compassionate, expert guidance to help you navigate the financial implications.

Understanding the Immediate Financial Steps

In the UK, when someone passes away, certain financial procedures need to be addressed promptly, such as:

1. Register the Death: This should be done within five days at a local register office. You'll receive a death certificate, which is essential for managing the deceased's affairs.
2. Notify Relevant Institutions: Inform banks, insurance companies, and other financial institutions about the death to prevent fraud and begin the process of settling accounts.
3. Locate the Will: If a Will exists, it will outline the deceased's wishes regarding their estate. If there's no Will, the estate will be distributed according to intestacy laws.

The Importance of Having a Will

It's concerning that a significant proportion of UK adults do not have a Will. According to the Money and Pensions Service, as of January 2025, 56% of UK adults aged 18 and over do not have a Will, including 53% of adults aged 50-64¹.

Dying without a Will can complicate the distribution of assets and may not reflect the deceased's wishes.

Navigating Probate and Estate Administration

Probate is the legal process of administering a deceased person's estate. It involves validating the Will (if one exists), settling debts, and distributing assets to beneficiaries. This process can be complex and time-consuming, often taking several months to over a year, depending on the estate's complexity. Seeking professional advice can help streamline this process and ensure all legal obligations are met.

Inheritance Tax Considerations

Inheritance Tax (IHT) is a significant consideration when managing a deceased person's estate. As of October 2024, the UK government announced an extension of the IHT threshold freeze until 2030, meaning the first £325,000 of any estate remains tax-free, with a 40% tax rate applied to amounts above this threshold.² Understanding these thresholds and potential exemptions is crucial to effectively manage and potentially minimise the tax burden.

If the value of the estate exceeds the standard Inheritance Tax threshold, it may still benefit from additional relief through the residence nil rate band (RNRB). This applies when a home is passed on to direct descendants, potentially reducing the Inheritance Tax due. The RNRB is up to £175,000 and is also frozen until 2030. To help determine how these allowances may apply, the Gov.uk website offers a useful calculator.

Emotional and Financial Wellbeing

Dealing with the financial aspects after a loved one's death can take a toll on one's mental health. According to the Bereavement Index 2024, 88% of legal professionals say estate administration in the UK remains slow and inefficient, with many families struggling to manage the process.3 Engaging with financial professionals can alleviate some of this burden, providing clarity and support during a difficult time.

How Stringer Mann Can Assist

At Stringer Mann Chartered Financial Planners, we offer:

• Personalised Guidance: Tailored advice to suit your unique circumstances, ensuring your loved one's estate is managed according to their wishes.
• Inheritance Tax Planning: Strategies to minimise IHT liabilities, preserving more of the estate for beneficiaries.

Facing the death of a loved one is never easy, but you don't have to navigate the financial complexities alone. Seeking expert advice can provide peace of mind and ensure that all financial matters are handled with care and professionalism. At Stringer Mann, we're here to support you every step of the way.

Please note that financial and tax regulations are subject to change. It's advisable to consult with a financial adviser for the most current information and personalised advice.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Will writing involves the referral to a service that is separate and distinct to those offered by St. James's Place. Wills are not regulated by the Financial Conduct Authority.

¹Money & Pensions Service, Press Release 27 January 2025

²Gov.uk, Press Release 30 October 2024

³Today’s Wills & Probate, Bereavement Index Report 2024

Further Reading

Additional articles in this series include:

• How much money do I need to see a Financial Adviser?
• Starting Work: Kickstart Your Financial Future
• Taking a Joint Approach to Finances
• Navigating the Home-Buying Journey
• Planning Financially for Parenthood
• Planning for the Unexpected
• Rebuilding your Finances after Divorce or Separation
• Retiring or Scaling Back at Work: Will Your Pension and Investments Last?

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Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.