5 all important steps employees can take after the death of a loved one

According to a 2021 report from Marie Curie, only 1 in 3 UK companies have a clear bereavement policy in place.

The truth is, the absence of a bereavement policy poses a significant problem for employers. That’s because the same report found that 56% of employees would consider leaving a job if treated badly following a bereavement, and 58% said their job performance was seriously affected months after the death of a loved one.

However, as an employer, you can make this difficult time easier by improving the bereavement support you offer.

Increasing paid leave is an important part of this, but educating employees about the steps they could take after the death of a loved one is equally valuable. Having a trusted professional they can turn to may also reduce their stress and help them avoid mistakes.

Here are five all-important steps employees can take after the death of a loved one.

 

1. Get a death certificate

A death certificate is required by certain organisations when dealing with the death of a loved one. In order to obtain this, your employee must register the death.

They may need several of their loved one’s documents to register the death, including their:

• Birth and marriage certificates
• NHS medical card
• Proof of address (utility bill)
• Driving license
• Passport

Once the death is registered, they need to contact their local register office to obtain copies of the death certificate. Your employee may need a certified copy (not a photocopy) for the deceased’s:

• Bank
• Insurance company
• Funeral and cremation providers
• Pension companies

Knowing exactly what they need beforehand may speed the process along, so they can start arranging the deceased person’s affairs immediately.

 

2. Notify the necessary institutions

Notifying family members and friends about the death is an important step, but there are also certain organisations that should be told.

Various government departments need to know the person has died so they can update their records. Luckily, the government Tell Us Once service informs them all, so there is no need to deal with lots of different services separately.

Your employee may also need to speak to pension providers, banks, insurance companies, and anybody else the deceased person had a financial product with.

To help employees cover all bases, you could consider creating a checklist they can consult, so they know exactly who to contact after the death of a loved one.

 

3. Piece together their loved one’s estate plans

According to Moneyfacts, 51% of people aged between 55 and 64 don’t have a will in place. As a result, there can be complications around estate planning.

If this is the first time your employee has lost a close family member, they may not understand the process. So, as an employer, your guiding them through it could be of invaluable help.

If there is a will, your employee may be named as executor, in which case they are responsible for administering the estate. However, if there is not a will, the next of kin is usually named as the administrator and takes on these duties.

If your employee is responsible for dealing with the deceased person’s estate, they must gather their financial information and create a clear picture of their assets.

To do so, they may need the following documents:

• Bank and building society statements
• Credit card statements
• Tax and National Insurance documents
• State and private pension documents
• Car, home and life insurance policies
• Utility bills
• Property deeds
• A letter from a solicitor detailing the value of any property.

Often, speaking to a person’s financial planner, if they had one, is the best way for your employee to find these documents. A planner may also be able to provide information about pensions and investments that the person held, as well as any protection policies, such as life insurance.

Once they have the relevant documentation, they can build a clear picture of the deceased person’s assets and begin administering the estate.

Crucially, the executor of the will is personally liable for IHT. This may feel like a huge weight of responsibility for your employee, so it’s vital that you help them understand how to calculate and pay what they owe correctly and efficiently.

By offering financial advice as a workplace benefit, you can reduce the stress of being an executor and support your employees during this difficult time.

 

4. Go through the probate process

Probate – called “Confirmation” in Scotland – is the process of administering a person’s estate after they die. It involves dividing up assets according to their will and distributing them as inheritance. Any debts and Inheritance Tax (IHT) will be paid before this.

Probate is necessary in most cases, but there are some exceptions. You may not need probate if:

• All assets are left to a spouse
• The total estate is worth less than £5,000
• The total estate is made up of physical cash and personal possessions like jewellery and cars
• All property is jointly owned, and ownership automatically passes to the other person
• They had a joint bank account, so the money automatically passes to the other person
• The estate is insolvent – there is not enough money to pay debts, taxes and expenses.

However, each case is unique, so your employees may benefit from receiving bespoke advice from a financial planner on this if they are unsure.

 

5. Make a life insurance claim

According to SunLife, only 69% of people made provisions for their funeral while alive, and 59% of those people did not leave enough money to pay for the full funeral.

A life insurance claim on their loved one’s policy can help your employee cover those costs. It may also reduce financial stress because it could allow them to:

• Continue paying their mortgage (or repay the loan in full)
• Fund education for their children
• Pay off debts
• Cover everyday expenditure.

To make a claim, your employee should contact the insurance company with the deceased person’s policy number and death certificate. They can also cancel other insurance policies like critical illness cover, to ensure they aren’t paying unnecessary premiums after the death.

Provided there are no complications, most life insurance claims are settled within a month. A financial planner can answer any questions your employee might have about the claims process, and could help them manage a lump sum payout when it arrives.

 

Get in touch

Your employees need support after a death of a loved one. Ultimately, trustworthy financial planning can help alleviate administrative stress in a time of grief. We can help you provide reliable advice to your employees.

Email info@second-sight.com or call us on 0330 332 7143.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.