Planning for the future is something we all know we should do, but it’s easy to put off. The thought of making decisions that affect both us and our loved ones can feel overwhelming. Yet, taking time to prepare the right documents today can provide invaluable peace of mind. These documents ensure your wishes are respected while offering your family the clarity they need during difficult times.
In this article, we’ll walk you through five key documents that will help you plan ahead with confidence and give both you and your loved ones the security and peace of mind you deserve.
1. Will
A will is one of the most important documents you can create. It outlines how your assets will be distributed after your death, ensuring that your personal belongings are handled according to your wishes.
New research from Canada Life reveals that over half of UK adults (51%) have not written a will, nor are they currently in the process of writing one. This includes 13% of people who state they have no intention to write a will in the future.
Without a will, the state may decide how your assets are divided, which can lead to confusion or even disputes among family members. By writing a will, you can designate beneficiaries, name guardians for minor children, and provide instructions for your funeral.
What should a will include?
- A list of your assets (e.g., property, savings, investments).
- The names of those you want to inherit your assets.
- Details of guardianship for minor children, if applicable.
- Your funeral preferences, such as burial or cremation.
When should you update your will?
Major life events, such as marriage, divorce, the birth of children, or the purchase of property, should prompt a review. It’s also wise to revisit your will every 3-5 years to ensure it reflects your current circumstances.
If you would like help making these documents easier to manage, Finli offers personal, professional guidance, helping families create plans that truly reflect their values and needs.
2. Lasting Power of Attorney (Health & Finance)
A Lasting Power of Attorney (LPA) gives someone you trust the legal authority to make decisions on your behalf if you become incapable of doing so yourself. There are two types of LPAs: one for health and care decisions and another for financial matters.
An LPA ensures that someone can act in your best interests when you’re no longer able to manage your affairs, whether due to illness, injury, or age-related conditions.
Who needs an LPA?
Anyone over the age of 18 can set up an LPA. However, it’s especially important as you get older. If you have no LPA in place and become mentally incapacitated, your family may not have the legal right to make decisions for you.
How does it work?
- You appoint one or more people to make decisions for you in areas such as healthcare or finances.
- These decisions can range from day-to-day financial management to making medical choices if you become incapacitated.
When should you review your LPA?
You should update your LPA whenever there are major life events or if your chosen attorneys are no longer suitable. It’s also important to ensure the details reflect your changing health or financial situation.
3. Advance Decision (Living Will)
An Advance Decision (also known as a Living Will) is a document that outlines your preferences for medical treatment if you’re unable to communicate them in the future. It can include instructions for your healthcare team regarding life-sustaining treatment, such as resuscitation, organ donation, or end-of-life care.
While many people may not consider this document until later in life, it’s crucial to make your preferences known while you’re still able to do so.
Why is an Advance Decision important?
This document ensures that your medical team and family members understand your wishes should you become seriously ill or incapacitated. It can ease the burden on loved ones who would otherwise have to make difficult decisions without your guidance.
When should you update your Advance Decision?
It’s essential to update this document as your health changes. If new medical treatments become available or your views on care evolve, revising your Advance Decision can ensure that it reflects your current wishes.
More on: Advance Decision (Living Will)
4. Pension Beneficiary/Nomination Forms
Many people overlook pension beneficiary nomination forms, but they are just as important as a will. These forms allow you to specify who will receive your pension benefits after your death, ensuring that your wishes are followed.
Without a nomination, the pension provider may decide who receives your benefits, which might not align with your intentions. This can cause unnecessary stress and delays for your family during a difficult time.
What should you include in your pension beneficiary nomination?
- The name(s) of your chosen beneficiary/ beneficiaries.
- Their relationship to you (e.g., spouse, children, friend).
- Any specific instructions regarding how the pension should be divided.
When should you update your pension nomination?
You should review this form after major life events, such as marriage, divorce, or the birth of children. It’s also worth revisiting regularly to ensure it reflects your current intentions.
5. Funeral Plan or Expression of Wishes
While it may seem morbid, planning ahead for your funeral can provide significant comfort to your loved ones. A funeral plan or expression of wishes can outline how you’d like your funeral to be carried out, from the type of service to your preferred burial or cremation.
Why have a funeral plan?
Having a funeral plan can ease the emotional burden on your family at an already stressful time. By clearly stating your wishes, you can help your loved ones make decisions quickly and with confidence.
When should you update your funeral plan?
Review your funeral plan if your preferences change or if your family situation evolves. You can also update it regularly to ensure it aligns with your wishes at the time.
Conclusion
While thinking about these key documents may not always feel easy, it’s an important step in protecting your loved ones and ensuring your wishes are respected. By creating and regularly updating your will, LPA, Advance Decision, pension nominations, and funeral plans, you provide clarity and peace of mind to your family when they need it most.
