Latest news with #endOfLifePlanning
Fast Company
9 hours ago
- Business
- Fast Company
This overlooked personal finance tip can help your loved ones
Thinking about your own death is not something most people enjoy doing. However, if you plan to pass on savings or assets, like a home, having a will is important in ensuring those items end up in the right hands. Still, according to a new survey, most Americans don't have a will. The data, which comes from a Western & Southern Financial Group survey of 1,007 U.S. adults, showed that only one in four Americans has a will. Understandably, the likelihood of having a will differs widely between generations. Baby boomers were the most prepared with nearly half (47%) having a will, while only 23% of millennials did and 20% of Gen Zers. But astonishingly, nearly a third (30%) of respondents have never even discussed end-of-life plans with their family at all. And, according to the research, that's highly problematic, because often, the death of a loved one can cause more than grief. It can cause financial distress. Over half of respondents (51%) said they struggled financially after a death of a loved one and 14% described those challenges as being significant. The number one reason most said they've never discussed financial plans is due to discomfort (54%). But that discomfort can lead to a lot of confusion. The data showed 38% of people were not confident in their understanding of their parents' finances. That was especially true when it came to financial arrangements between siblings. Fifty-five percent of Americans felt uninformed about how finances would be distributed with millennials and Gen Zers most in the dark (57% each). A staggering number of those surveyed—38% overall—had not done any preparation either for their own passing or the passing of a loved one. However, nearly half of Gen Zers said the same was true (49%). It makes sense that Gen Z may be the least financially prepared for death (given they're the youngest working generation), however, it could also be due to the broad fears, spanning the generations, that there won't be much leftover to pass on. A previous Western & Southern survey found that nearly half of Americans (49%) were not confident in their ability to retire—ever. Gen X was the most concerned (52%), followed by millennials (50%) then boomers (47%). But the youngest generation of workers, who have the most working years left, were not confident about retirement either: 41% of the group said they worry they may never retire. While there are many reasons why writing a will can be intimidating, there are plenty of online resources that can help. Writing a will does not require an attorney and online will writing services can cost between $0 and $300.
Yahoo
12-05-2025
- General
- Yahoo
5 vital but difficult questions to ask family members
Next week is Dying Matters week (5 May). You'd be forgiven if this wasn't something you planned to celebrate. Nobody likes to think about death — so it's a hard sell to get people to spend a week talking about it. However, whether we like or not, this is something that's going to affect us all. If we don't have key conversations about this with older members of the family, it will make life even more difficult when they pass away. There are five questions we need to know the answers too, and if we don't, this is a sensible time to start having those difficult conversations. This is a legal arrangement, letting them nominate someone to make decisions for them if they eventually lack the mental capacity. Read more: Ignoring this form could delay pension inheritance and risk 40% tax There are two types of lasting power of attorney (LPA) — one will enable someone to make medical choices for them and the other will let someone handle their property and finances. It means someone they trust can step in if they're unable to stay on top of the day-to-day finances, or if someone needs to use their assets to help pay for care. Two thirds of Brits have no will, and it can cause serious financial problems for those they leave behind. If they die without one (which is known as dying intestate) the estate is divided according to specific rules, rather than how they might want. If they're not married, the rules can be particularly harsh, because a partner may inherit nothing — the estate will pass to children, parents and siblings, in that order. Even if they're married, their spouse doesn't inherit everything, because if they have children, they may be entitled to some of the estate too. Once they've made a will, they need to keep it up to date. If their circumstances change it needs to reflect their new situation. It's worth them taking steps now to take some of the pain out of the "sadmin" after their death. Most people will build up a number of pensions, ISAs and savings accounts, during their lifetime, so they can consider consolidating them where possible, closing old current accounts, and bringing things together. They need to be careful not to give up any valuable benefits, but this process not only saves extra admin for their loved ones, but can make their own financial life much easier to manage as they go along too. Then they need to make a list of every account, and keep it alongside their will and lasting power of attorney, so their loved ones know where to find everything. The huge potential costs mean they need to think things through. They might have assumed their family will care for them when the time comes, but if this isn't practical, it's worth having the conversation sooner rather than later. Read more: Home renovation mistakes and how to avoid them If they might need formal care, charges of £1,500 to £2,000 a week are not uncommon. It means they need to factor in the potential costs when considering what to do with their assets, especially when they're thinking about making gifts to family, so they don't give away too much too soon. There's a good chance many people will need to use the equity in the family home, so they may want to discuss what they want their family to do with it in advance — whether it's renting it (although you need to consider the risks and costs), selling it, using equity release, or entering into a deferred payment agreement with the local authority (which means care home costs roll up and are paid when the property is sold). The right solution will be different for everyone, but they need to consider the options carefully. It can be difficult to pitch this question, because there's a fine line between being helpful and seeming greedy. However, with inheritance tax thresholds frozen, house prices so high, and new rules set to bring pensions into the mix, they might end up with a tax bill that's worth considering. The vast majority of people will be protected by the nil rate bands of £325,000 and £175,000 for property left to children or grandchildren. If they're married and pass everything to their spouse, then their nil rate bands will pass too, so £1m is tax free on the second death. Read more: How to make up to £175 by switching bank accounts However, it's worth them considering how much their estate might be worth, and whether tax could be an issue. They shouldn't feel forced to give away assets they can't afford, but if they're set to bust the nil rate band there are gifting allowances that can help. They can give away up to £3,000 a year, plus wedding gifts and gifts from surplus income that pass out of their estate immediately for inheritance tax purposes. They can also leave bigger gifts and as long as they live for another seven years these will also fall out of their estate. If they have younger family members who are struggling to take key steps with their finances — like buying a house or retiring — a gift could make a world of difference and ease the tax burden too. Read more: Major lenders bring back under-4% mortgages amid interest rate cut hopes How higher house prices are impacting young people's finances Why Trump's tariff turmoil should not sway pensionersundefined Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
