If I asked my fellow believers, “How many of you would like to go to heaven when they die?” I am likely to be met with a very passionate, “Yeah!!”. If I then followed up that question with, “Who wants to go to heaven tomorrow?”, I suspect that I would receive a rather more muted response!

In all seriousness, death is quite understandably an uncomfortable topic for many of us to consider, however it is a reality that all of us must face at some point. Given that we do not know when we will die, it would make sense to make reasonable preparations for death sooner rather than later. Despite this many people bury their heads in the sand about planning for this certainty. Here are a few areas that we should to consider:

Making a Will

I was going to start with life insurance however I really wanted to provide focus on an area where there is a distinct lack of knowledge – wills. Research from Canada Life says that a staggering 59% of UK adults do not have a will.

Dying without a will can cause a lot of avoidable problems administering your estate when you die. The main issue is that your assets may not be distributed in the way you would have wished causing potential conflicts for your relatives to deal with after your death. Writing a will is the best way to ensure your assets go to the right people when you die.

Inheritance Tax

Inheritance Tax (IHT) is a tax on the estate of someone who has died, including all property, possessions and money. The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the tax-free threshold which is currently £325,000.

You can pass a home to your spouse or civil partner when you die, and there’s no Inheritance Tax to pay.

If you leave the home to another person in your will, it counts towards the value of the estate.

However, the Residence nil rate band (RNRB) can increase your tax-free threshold if you leave you home to your children or grandchildren. This includes stepchildren, adopted children and foster children, but not nieces, nephews or siblings.

There is tapered withdrawal of the home allowance if the overall value of your estate exceeds £2 million.

Life Insurance

We have previously covered the necessity of financial protection policies here. However, it is definitely worth re-iterating the importance of ensuring that those who depend on you financially are taken care of after you die. Among the many things to consider are paying off the mortgage, replacing the household income that has been lost and potentially the various costs that are associated with raising children.

Finally, the not insignificant cost of paying for a funeral may be another area to consider which can be met with insurance.

In conclusion, I hope I have helped you consider the financial implications to those closest to you if you were to die. Estate and tax planning can be complicated, so it’s worth getting advice to help you make the right decisions for your situation.

In Proverbs 13:22 it says,

“A good man leaves an inheritance to his children’s children.”

By planning ahead, we can be good men and women to our future generations.

God bless

Ten Talents