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25 October 2024

In the aftermath of a death, while the family are coping with the tragic loss of someone close to them, a whole raft of important jobs remain to be done. We talked to Matthew Hutton, who has written a concise but comprehensive guide to the subject.

What inspired you to write the book?

It was having two recently widowed friends to stay and hearing their stories, especially the heart-rending account of one dealing with the affairs of a husband who had died unexpectedly abroad without a will and for both of them the time, energy and emotion taken up in dealing with everything that had to be done.

In your experience, what is the most commonly overlooked aspect of end-of-life planning, financial or otherwise?

Sadly, mental incapacity and specifically dementia is increasingly a fact of life. If any of us were to lose capacity, it is essential to have in place a lasting power of attorney (LPA). These come in two parts: health and welfare; and property and financial affairs. You appoint one or more people you trust completely to make decisions on your behalf. In the absence of such LPAs, the long-drawn-out and costly procedure of the Court of Protection comes into play.

Then there are wills – possibly the need to make one, either for the first time or since marriage (which revokes a will). Or, if a will is already in place, you should make sure it is up-to-date and reflects current wishes.

The final thing is ensuring access to digital assets.

How can people approach the sensitive topic of financial planning with their elderly parents or relatives? Or, indeed, the other way round?

Death remains a socially unacceptable topic. We plan for everything else in life, but not for the one certainty. We need to point out to those closest to us the enormous mess and the cost in terms of time, energy and emotion if their affairs haven’t been properly sorted.

What are some of the biggest challenges people face when trying to get their affairs (financial and otherwise) in order, and how does your book address them?

Of course, it all depends on the individual. I suspect it is simply a question of life being too busy even after retirement. We, and perhaps our spouses or civil partners, may know where everything is, but once you and your other half (if any) are gone, where are the records to point those who follow to what you own and how things need to be dealt with? In my book, there are two checklists, one ‘critical’ and the other ‘comprehensive’, each designed to winkle out the questions and issues which I think people need to address.

What advice do you have for younger adults who might think it is too early to start considering end of life planning, financial or otherwise?

Nearly three in five adults don’t have a will. You may think, ‘I don’t need one, as I am relatively young and if I die it will all go to my wife/husband/partner.’ But that ignores the impact of the intestacy rules, which kick in if you die without a will. These provide an order of inheritance of the estate depending on who survives: spouse or civil partner, children, parents, siblings and so on. If no blood relative survives, the whole estate goes to the Crown.

The problem is that, if you die leaving a surviving spouse or civil partner and children, the spouse or partner will take any personal chattels, the statutory legacy of £322,000 and half of the residue. The other half will go to the children at the age of 18. This means not only paying inheritance tax (which could be avoided) on the first death, but also putting possibly substantial assets into the hands of children at an age when it may be entirely inappropriate. The other importance of a will is of course the appointment of executors, who are people you trust to take charge of your affairs after your death.

The truth is that none of us knows when our end will come, and you are never too young to start planning to take care of your family. My book offers some simple solutions to help with that process.

GET IN TOUCH

Piers Wheeler

Director – Institutional

T +44 (0)20 7963 8258

Developing and executing asset management strategy for capital raising and strategic relationship management. Coverage includes EMEA, Asia and Australia. Piers joined Ruffer in 2021, having previously worked with asset management firms including Eastspring, AMP Capital and LEK as a strategic consultant. He holds a MA from the Bayes Business School and a BA (Hons) from the University of Oxford.

Annabel Paterson

Senior Associate – Institutional

T +44 (0)20 7963 8123

Joined Ruffer in 2021, having graduated with a first class honours degree in land economics from the University of Cambridge. After two years working with the UK Private Wealth team and completing her IMC and CFA Level I qualifications, she now supports Ruffer’s global business development and client servicing efforts.

Articles by Annabel

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