When estate planning, one thing that is commonly overlooked is whether your surviving spouse/cohabiting partner will have sufficient cash to sustain their costs of living immediately after your death.
Even if the whole estate is left to the survivor, these funds may be locked away until a Grant of Probate is issued, leaving their spouse or partner without any capital or income other than their own.
The survivor’s income will immediately drop, widow’s pensions take time to set up and start paying out, and generally (with the exception of Council Tax) bills will not decrease much.
If bills are in only one person’s name, the account will need to be transferred to the survivor. Or the account will need to be closed, with a new one being opened in the survivor’s name.
If the bills are joint, the deceased’s name will usually be removed from the account.
Pre-Planned Solutions
- Joint bank accounts pass immediately to the survivor on death and do not require a Grant of Probate to access. This would be the easiest way to provide for a dependant in this situation. However, of course, this relies on a level of trust between you and the joint account holder whilst you are alive.
- Life Insurance can be taken out, this could pay off any mortgage, or simply provide a sum of money to support your partner. It is important to make sure that if you pursue this route that you officially nominate it, then it will fall outside of the estate administration. If you do not, it will be classed as an asset of the estate and may require a Grant of Probate to release and will also be subject to Inheritance Tax.
But What If You Are In This Situation Now?
Speak to your mortgage lender and utility companies if you are struggling to keep up with payments.
Most of these companies have teams dedicated to working with people to make sure that bills are affordable.
They are used to dealing with bereavement and the additional stresses that this can put on a family’s finances in the short term.
Make sure you are claiming any additional benefits you may now be entitled to. Bereavement Support Payment and Universal Credit are just two of the additional payments you may be able to claim after a death and drop in income.
The Citizens Advice Bureau is available to speak to free of charge to discuss financial support and eligibility for benefits.
As well as being available to speak to over the phone, they run free drop-in clinics all over the country.
To see how to speak to your local Bureau, visit their website - Citizens Advice.
You can also book a free initial appointment to speak with one of our Probate lawyers.
Asset holders are sometimes more likely to release money without a Grant of Probate where a solicitor is involved.
We can negotiate with asset holders on your behalf and see if any interim payments or additional support can be given.
Please note that we are unable to offer free legal advice. Our client services team are here to take your case details and explain any costs involved
If you would like to speak to our expert legal team about this, or any related subject then please contact our team by phone on 0207 936 6329, Email or by completing our Quick Contact Form below.
Please note that we are unable to offer free legal advice. Our client services team are here to take your case details and explain any costs involved