A fair few of you, myself included, will have gone through the trauma of having to deal with the death of a parent. It’s not a great time to say the least.
Personally, I realised there was a hundred and one things I hadn’t discussed with my mum. Now it was too late.
Who would take the dogs? What to do with the house? What hymns and prayers?
I can’t say it ever occurred (or seemed appropriate) to grill her at the time and I guess my mum thought I’d do the best I could and that would be good enough.
That all seems a bit unsatisfactory. Personally I think it’s best for the parent to be proactive and let the next generation know what they’d like to happen.
It’s easily the best way to avoid the trauma, drama and squabbles that can easily occur during a time of grieving.
Unbelievably a NS&I survey has shown only 7% of people have spoken to their parents about inheritance.
This is obviously not an easy topic and it may be a good idea to set aside some specific family time to have this discussion. Take some time to think about your priorities for your money after you are gone.
This could include things like making sure your partner or spouse is provided for, donating to a charity that is important to you, caring for a relative that is ill or has a disability, or making sure your grandchildren have the best possible opportunity of a good education.
During the meeting with your family, try to outline what you want to achieve and your reasons, rather than the exact sums involved.
This will help your family understand your specific goals and could reduce any potential disagreement.
They may also have some relevant input into the management of your estate and it is worth taking on board their expectations and opinions with regard to your assets and possessions.
You can also reassure them that nothing is set in stone as many things could happen between this discussion and the end of your life, and you can amend your will to reflect this.
This conversation can give you the foundation to adequately prepare your will knowing you have taken your loved ones’ wishes and expectations on board.
As part of your planning, talk about Inheritance Tax mitigation. Mitigation ensures you have done everything you can legally to pay the minimum amount of tax.
There are a number of ways of reducing tax on your inheritance which include making a gift to your partner or giving money to your family and friends. There are also options like trusts or leaving money to charity which can reduce your overall inheritance tax bill.
But still the most important aspect of this difficult subject is to a have an honest, open dialogue with the people that are important to you to help prepare them as best you can for the future after you are gone.