Dealing with the death of a loved one may not only be emotionally challenging.
It could come with its financial challenges. Whilst you may inherit some of their wealth, you may also inherit responsibility over bills or a mortgage. There may also be taxes to consider. Then of course there’s cost of arranging a funeral. Here are some tips on helping you to cope with the financial burden that the death of a loved one can sometimes bring.
Check if your loved one had any schemes in place
It’s possible that your loved one may have taken out life insurance, set up a funeral payment plan or even set aside some savings. They may have even left you money in a will.
All of this could help you financially. It could pay for the funeral and even possibly help to fund future mortgage payments. Your loved one is likely to have left information on all this in their will.
Money may sometimes not always go into the right hands. If you feel you are owed something that another person has received, you could look into contesting a will. If there isn’t a will in place, this could all be more challenging and it could be worth hiring a solicitor to help you.
Talk with creditors
If creditors are demanding bill payments from you loved one, you should let them know immediately of the circumstances. In the event of death, most of a person’s debts will be wiped clean, whilst bill providers may stop payments temporarily. Make contacting these creditors one of your first priorities.
Don’t go overboard on funeral costs
Many of us want to splash out on the ultimate send-off for our loved one, but think about what they would have wanted – would they really want you getting into debt to throw an extravagant party? Consider options such as having a wake at home, using a basic casket rather than a gasketed one and resisting huge flower displays. You can still host a meaningful celebration of their life without spending huge amounts.
Check that you don’t owe inheritance tax
If you inherited a large amount of money or a property, you may have to pay inheritance tax if the total is over a certain amount. You usually have a year to pay this, but it can be a lot of money. If you’re selling a property that has risen in value, also be prepared to pay capital gains tax.
Consider getting help from a financial advisor
During this difficult time, your emotions are likely to make it difficult to think logically. Many people inherited large amounts of money or multiple assets can benefit from getting advice from a financial advisor. This could help to take a lot of stress away and ensure that your making the most sensible decisions for you and your loved one.
Don’t reject help from friends and family
There may be friends and family who are willing to chip in to help raise funeral funds if you need more money for this occasion. Friends and family may also be able to financially support and emotionally support you during this time of need. Make sure that you’re not turning them away.
Financially, the death of a loved one can be difficult. These points should help you get back on the straight and narrow.