Even though it’s not a pleasant thought, preparing for the worst helps you to ensure your loved ones are taken care of. As a people-centred credit union, we know how important this is. Our credit union is owned by its members, and we all want to make sure the important people in our lives can benefit from any credit union savings or wealth we pass on.
Let’s take a look at what happens to your account after you pass away.
Preparing Your Finances
Getting your finances in order early is a good idea. This ensures your loved ones won’t be hit with any unexpected bills or costs and that everyone is clear on what they are entitled to from your estate. Here are some things to consider.
1. Write Your Will
Your will is an essential document. It helps your family understand your last wishes clearly and ensures there’s no confusion about what needs to happen to your assets. A will is legally binding and can ensure your wishes are carried out.
Not creating a will means your assets and wealth will be shared out in a way defined by UK law which might not be how you want. A will can also reduce the amount of inheritance tax your loved ones end up paying on anything they inherit.
2. Plan Funeral Expenses
Ensure your funeral preferences are clear, and decide whether you would like cremation or burial. Creating a plan for your funeral not only helps relieve your loved ones of some stress as they know they’re carrying out your wishes, but it also helps you plan for the costs associated.
Paying into a funeral plan can help to distribute some of the costs associated with having a funeral. Paying for life insurance can also involve extra benefits that help pay for your funeral. Your credit union could help you save towards your funeral costs. Talk to us about putting away a little extra money each month to help pay for these expenses when the time comes.
3. Organise Important Information
Make sure all legal and financial matters are taken care of or will be tied up, including
- Providing a solicitor or a person you trust with important documents, account information, and contact details.
- Instructing a solicitor or lawyer to formally arrange and tie up any lose ends.
- Plan for any debts to be fulfilled or handled.
- Plan for long-term costs and expenses associated with care, disability, illness, and early retirement.
- Ensure there is someone who can speak on your behalf if you lose your ability to give consent, such as a lasting power of attorney.
Money Helper offers a comprehensive guide to organising your financial affairs in more detail.
What happens to your credit union account after you die?
All good credit unions, like Metro Moneywise, will help members make the necessary preparations with their loved ones and final wishes in mind.
Your credit union will set up a beneficiary on your account. Your beneficiary can be anyone; it doesn’t have to be just one person. You may want to choose to nominate the same people you’ve written into your will or choose one person you trust who has agreed to handle the money in your account according to your wishes.
Nominating a beneficiary is legally binding. This means you can be assured your money will go to the person or people you nominated. You may want to review your decision every few years to ensure it’s up to date in case you wish to add or remove any nominated people.
The beneficiary or beneficiaries will be passed the money held in your account as a lump sum when you pass away, no matter how much you’ve saved.
Many credit unions offer life insurance on loans. This means that your loan is automatically paid off if you die, and your loved ones don’t need to worry about it.
Saving with a credit union has a whole range of benefits that can give you more financial independence and help you accumulate more wealth for a rainy day. Take a look at our blog for more information.
- Credit Union Savings Rates and Interest Rates Explained
- Benefits of Saving With Credit Union
- Should You Open a Credit Union or Bank for Savings Account?
- How to Find the Best Credit Union for Savings Account
- Can I Take My Savings Out of My Credit Union Account?
- How Are Credit Unions Regulated?