Financial Death Planning: Your Complete Guide to Getting Organised
Financial Guidance: How To Guide
Financial Death Planning means being financially prepared for death, also known as 'estate planning'. It's about getting your money-related affairs in order at the very least, so that those who manage your estate aren't financially inconvenienced in doing so. Ideally, it's also about ensuring your financial legacy is secure for your dependents and others you wish to recognise with gifts of money or other assets. Moreover, there are practical things you can do so that you too can feel financial security while you are still alive (even better!).
When I administered my father's estate, the financial side was where his preparation paid off most visibly: the accounts he'd listed, the policies he'd flagged, the affairs he'd kept simple.
This section builds on the critical steps you will have taken in the 'Practical' section, so please visit there if you haven't already done so (for example, sorting a Will is probably definitely your Number One priority!).
You are also welcome to print my free Death Planning Master Checklist that accompanies this section, which lists all the practical, financial and administrative activities that you might wish to complete.
Financial Death Planning: Where to Start
Assuming you've already addressed the 'Practical' section then this is the next place for you to continue your 'death-proofing'. If you're feeling a bit lost, why not download my free Death Planning Master Checklist (excel format) which provides a helpful summary of all areas to consider, with helpful columns for you to capture your specific details. You can then also store this and/or give to relatives should anything happen to you.
In terms of the financial steps, here's a summary of why they are useful (click on the links to go to the specific, detailed page).
Organise a Pre-Paid Funeral
A pre-paid funeral plan allows you to lock in the cost of your funeral at today’s prices and ease the financial burden on your loved ones. You can also outline your wishes, helping avoid difficult decisions during an emotional time.
Create a Financial Lasting Power of Attorney (LPA)
This lets you appoint someone you trust to manage your finances if you lose capacity. They’ll be able to handle bills, bank accounts, property, and more, giving you peace of mind that someone responsible is in place.
Arrange Life Insurance
Life insurance provides a lump sum to your beneficiaries if you die during the policy term. It’s one of the simplest ways to protect your family from financial hardship and cover things like mortgages, debts, or living costs.
Arrange Critical Illness Cover
Critical illness cover pays out a tax-free lump sum if you’re diagnosed with a serious illness (such as cancer, stroke, or heart attack). It can be a lifeline, giving you breathing room to recover without money worries.
Arrange Income Protection Insurance
Pays a fixed amount as a percentage of your salary if you are unable to work. Note that any critical illness cover you have may make this amount less or - especially if you have substantial savings - possibly not worth paying for at all.
Minimise Inheritance Tax
Without careful planning, inheritance tax can take a hefty bite out of your estate. This section explains ways to reduce your liability, including lifetime gifts, trusts, charity donations, and using your full tax-free allowance.
Organise Investments
This section looks at ISAs and investments, keeping accounts consolidated and easy to find, understanding tax-efficient wrappers and capital gains tax, and making sure your strategy still makes sense as your priorities shift towards legacy rather than growth.
Manage Pensions
Your pensions form a big part of your financial legacy. Your pension usually passes via your provider's "expression of wish" form, not your will, so keeping that nomination current matters more than people realise. This section also covers how different pension types are treated on death.
Create Trusts for Beneficiaries
Trusts can be powerful tools to protect your assets, control how and when your beneficiaries receive them, and reduce tax liabilities. Especially useful for young children, vulnerable adults, or more complex family situations.
Death-Proof Your Business
If you own a small business, this section helps you prepare for continuity after your death. It covers how to choose a successor, protect cash flow, avoid legal wrangling, and use tax reliefs like Business Property Relief to prevent the business being crippled by inheritance tax.
“Fear of death increases in exact proportion to increase in wealth.”
Ernest Hemingway
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About the founder. I'm Alex Johnson, and I built Not So Grave after my father died suddenly in 2023. Going through his estate taught me more about death planning than any guide I could find at the time, partly because of the documents he'd left, and partly because of the gaps where he hadn't. I'm not a solicitor or a financial adviser, and I'll always tell you when to use one. What I am is someone who's been through it and wants to make your turn easier.