Following a chat with my brother after recently attending a family funeral, we got to discussing whether the kids would be able to run our houses if we ‘went’. We then realised that while they could cook, load the washing machine, and even get themselves to work, they probably wouldn’t know how to access our online bank accounts or know who our mortgages are with.
Thinking about it, there were a number of things my family would need to know if I was no longer there to help (and pay!) for everything. That’s why I’ve developed an “ICE Pack” – with ICE standing for ‘In Case of Emergency – because if I am ever incapacitated in anyway, there are few important things my kids will need to be aware of to keep the house running.
Here are 5 ideas to start your ICE pack off, but remember to tailor it to your specific needs:
Look at the numbers
Should the worse happen, your family are going to need to be able to access your accounts, if not to use them, then to advise the appropriate people that they need to be closed. Would your family know who you bank with, or where you savings are?
One modern issue is that people often have accounts that are entirely online, and often don’t receive paper statements. I personally have a Monzo account, that can only be accessed with my card and through the app, so they would need to contact the bank online through my phone – or at least know my login information.
You should create a list that gives the basics to the family so they can locate everything you would need them to know. A simple list could look list this :
Lloyds – Main bank that all direct debits come out from. Card is in my purse / Sort code: 12-34-56 Account number: 01234567
Nationwide – Savings account. Card is in my purse / Sort code: 12-34-56 Account number: 01234567
Online bank account with Metro. Card is in my purse/ Will need to use app to access it. The PIN is 1234.
Sort code: 12-34-56 Account number: 01234567
This would also be the perfect time to dig out those old accounts – I recently received a statement for a cash ISA I have with the Co-op, that I had forgotten all about, and it had a whopping £8 in it! Go through all of your paperwork and compile a list that includes everything you can think of that relates to your finances.
People also need to be aware of your outstanding debt; You don’t want interest piling up because the family didn’t know you had a credit card or a secret loan!
Delete my internet history!
If you are a frequent flyer with us, you will know that I am all about writing lists. That is why I have another list for you: you don’t need to just note down your online banking and savings, but utilities and subscriptions.
Another account my children will need to access is the one that controls the electric in our house. We use an app and have a Smart meter that needs loading with funds every month. While they are perfectly capable of getting into my phone, they will need to know the names of the companies and utilities that will be expecting money, unless they want to be planning my funeral in the dark when the electricity goes off.
While discussing this post with one of my daughters she also pointed out that they would need access to my emails, as if they needed a new password for Netflix, Disney plus or Amazon they would be sent there. I think that, basically, people will need full access to your laptop, phones or computer. So if you have anything that REALLY never needs to see the light of day make sure that those files are password protected, and take those passwords to the grave with you!
Peace of Mind has a policy… It’s called Life Insurance
As a mortgage holder I was legally obliged to take out life insurance. Now that I am getting older and the mortgage is going down – for now!- the money from my policy will form a good part of my estate as well as give the kids enough cash to bury me. (I’ve already told them that I want one of those wicker caskets and to have a tree planted over me)
Therefore it is really important that the family knows who you are insured with, the policy numbers and most importantly that you have updated the beneficiaries of the policy to reflect your wishes. I had to recently update all of my policies to remove my ex and share the pay out between my four children.
This is your reminder if you need to do this too, Don’t forget pensions and other policies that will pay out to your estate. This would include your work benefits, such as ‘death in service’. Make sure your money goes to the people you want to; don’t risk their financial future because you forgot to update your paperwork.
I have heard horror stories of a long ago ex turning up to lay claim to peoples policies because they were never removed, so be sure to keep yours up-to-date
Where there is a will…
Research from the Money and Pensions Service suggests that 56% of people in the UK over 18 do not have a will. This includes the 53% of adults aged between 50 and 64, who have not left clear legal instructions as to where they want their money and property to go.
Perhaps this is because they assume it will all go to a partner or their children as next of kin, perhaps they just don’t want to think about dying. I imagine many have the intention of writing a will, eventually, and just never get around to doing it.
Either way, if you do not make your wishes clear, they may not be carried out. This is particularly important if you have minor children, or adult children with care needs.
Writing a will need not be expensive. To be legal in England and Wales, a will must be in writing, made voluntarily by a person of sound mind, and signed by the testator in the presence of two witnesses, who then also sign the will in the testator’s presence. The witnesses must be over 18, not beneficiaries of the will or married to a beneficiary, and must have a clear view of the signing.
If you have a more complex estate, it is certainly worth involving a solicitor or will writing service. And if you have an estate worth over £325,000 then your beneficiaries could be liable for inheritance tax. (Which may all change after the budget!) There are legal ways of avoiding some of this tax, such as trusts and gifts, but this is something that you should discuss with qualified advisors.
Another important aspect to consider once you have you will is to make sure your executors know where it is, and for you to keep it up-to-date. A change in circumstances, such as death of a spouse, or marriage, could possibly invalidate it. Remember to update it so that it reflects your wishes.
Letting people know
I have a number of friends who live alone, some of whom are in their late sixties and seventies. I sometimes wonder if anything happened to them, when would I find out? Would their families know to contact me, or would I think they were ignoring me until I saw a post on Facebook? (While I think about it, make sure the family can access your social media so they can see any message that come in for you)
This is why I have made a list of all the people my daughter will need to text (she doesn’t phone people, so I wouldn’t expect that from her). This includes my workplace, as they would certainly need to know if I am in a hospital bed sleeping off a stress induced episode.
It is amazing how many people in my friendship group don’t really cross over with my children now that they are adults. This is why a list of the people who they would need to contact with their details is vital.
Precious Things
I know I said five things, but consider this one a freebie. Do you have special things, heirlooms, that you specifically want to go to certain people? You can do this in your will, but have you considered letting them have them now?
There is a whole concept known as ‘Swedish Death Cleaning’ – which I will get around to writing about- that looks at going through your things in a timely manner. One consideration that crops up is… will they actually want the thing? There is little point you sitting on an heirloom if your family intends to flog it for cash the second you are gone. YOU could benefit from that cash now!
You may have deep feelings for certain belongings, but it is worth checking if the person you intend gifting it to is going to appreciate it. Perhaps if it is of importance you could find someone who would actually use it. No-one wants to be guilted into keeping a terrible ornament because it once belonged to Great Aunt Hilda.
Really look at your belonging and why you are keeping them and whether someone could benefit from them now rather than waiting for something to happen to you.
Over to you
Do you need to create an ICE pack? Are you happy that your possessions will go to the people you want them too? Would your family know how to access all of your information if they needed to?
Make yourself a list and look into getting your wishes set in place.