Thanks to those that have recently filled in our new post-review feedback forms. The results are really positive with some excellent pointers to areas where our clients want more support. One of the common themes has been learning more about how to help your family. This article will help support your planning and spark some conversations at your next review! The priorities will depend what stage of life you are in, some of this may be more relevant to your children, or conversely your parents. The ideal financial plan spans the generations!
Why make a plan?
Most people don’t think about financial planning in terms of “life” and “death.” They think about the mortgage, the bills, the school run, the holidays, retirement, and the hope that everything will just keep ticking along. But one of the most helpful things you can do for your family is put a plan in place that works both while you’re alive and when you’re no longer here. That means making sure your household can cope if something unexpected happens, and making life as easy as possible for the people you leave behind. It does not need to be complicated. In fact, the best family financial plans are usually the simplest ones: clear, practical, and reviewed regularly.
Start with the people who depend on you
The first step is to think about who relies on your income, your time, or your decisions. That might be a partner, children, older relatives, or even a business partner. Once you know who depends on you, it becomes much easier to see where the gaps are.
Ask yourself a few simple questions:
• If I wasn’t here tomorrow, how would the household cope?
• Could outgoings still be met?
• Would my family know where everything is?
• If something happened to me, who would make decisions?
These questions can feel uncomfortable, but they are exactly the kind of questions that lead to a stronger plan.
Make sure life still works if income stops
A family’s finances can change very quickly if someone loses their income, becomes seriously ill, or dies unexpectedly. That is why cashflow planning and protection are so important. We also can’t assume that just because someone is retired they will have paid off their mortgage and debts.
An emergency fund can be a real lifesaver. Even a few months’ worth of essential spending can give a family breathing room when life gets difficult. It can mean the difference between making calm decisions and making rushed ones.
It is also worth checking whether you have the right protection in place. That might include life insurance, income protection, or critical illness cover, depending on your circumstances. The right cover can help protect the family home, keep the household running, and reduce financial pressure at a difficult time.
If you have debts, this is also the moment to look at those. A mortgage or loan may feel manageable today, but it can become a much bigger issue if income is reduced. The aim is not to worry about everything that could go wrong. It is to make sure your family would still have options.
Don’t forget about incapacity
A lot of people focus on what happens if they die, but forget to plan for what happens if they lose capacity while still alive. That could happen after an accident, a stroke, a serious illness, or through dementia. If it does, your family may need to step in and make decisions for you.
This is where Lasting Powers of Attorney (LPA) are so important. They allow someone you trust to deal with your finances or health decisions if you cannot do so yourself. Without them, even close family members can face delays, stress, and extra paperwork.
This is also a good time to think about the practical side of life. Would your partner or another trusted person know how to log into the bank, find insurance details, or manage household bills? If the answer is no, it may be time to bring a bit more order to the paperwork.
You can make an LPA online but your financial planner will be able to recommend a solicitor if you don’t know where to start.
Make things easier after death
No one wants to leave their family with confusion, delays, or avoidable admin. That is why a clear will matters so much. A will helps set out who should inherit what, who should look after children, and who should deal with the estate. It gives your wishes structure and helps prevent uncertainty later on. But it is important not to rely on the will alone. Pension nominations, life insurance beneficiaries, and jointly owned assets can all affect what happens after death. These should be reviewed carefully so they match your wider wishes.
It can also help to create a simple file with the key information your family would need. This does not have to be fancy. Just a clear place where they can find:
• Bank and savings accounts.
• Pension details.
• Insurance policies.
• Mortgage and debt information.
• Solicitor details.
• Property documents.
• Contact details for key advisers.
That kind of preparation can save loved ones a huge amount of stress at a very difficult time. We will have some of this information which is really helpful for families, but perhaps not all of it. The Age UK website has some really useful resources including a printable booklet for you to keep all the information in one place.
Keep the plan fresh
Financial planning is not a one-off job. Life changes, and your plan should change with it.
Marriage, divorce, children, moving home, receiving an inheritance, starting a business, or retiring can all affect what your family needs. A plan that worked perfectly five years ago may not be right today.
A good habit is to review everything once a year, (you could tie it in with your annual review). That way, you know your plan still reflects your circumstances and your wishes.
Top tips for families
Here are a few simple tips that can make a big difference:
• Make sure you have an emergency fund
• Make sure you have the right protection in place.
• Write or update your will.
• Put Lasting Powers of Attorney in place.
• Review pension nominations and insurance beneficiaries.
• Keep key documents in one easy-to-find place.
• Make sure at least one trusted person knows where everything is.
• Review your plan regularly, not just once.
Some extra thoughts
Here are some additional family planning considerations:
• Have you discussed your preferences for your funeral?
• Have you made a ‘letter of wishes’ to supplement your will if you want certain items to be given to individuals
• Have you thought about your possessions, could you simplify things?
• Do you have pets? You might want to consider them in your plan.
The best financial plans do more than grow money. They protect the people who matter most, make hard times a little easier, and give your family a clearer path forward when they need it most.
Photo:- Roberto Nickson
This article is intended for general information only and does not constitute financial advice. Financial planning, protection and estate planning decisions should be based on your individual circumstances. The value of any benefits and the suitability of arrangements will depend on your personal situation. We recommend that you seek professional financial advice before taking action.