Support with Finances
Financial Check
We've asked some trusted experts to write a practical checklist, to help partners and spouses navigate their financial priorities during a terminal illness.
Free to download, edit and keep. You don't need to do it all at once. Start with one thing and make the choices which are best for you.
Money Matters
Personal finances can be complex. Many people struggle with financial hardship as a result of critical illness and bereavement. Even with financial security, it can be hard to know what to do about money.
It can be stressful to be thrown into the deep end of every decision, especially if you've never made those decisions before. It's common in a couple for one person to manage all of the money for the household.
We've written more about how to care for yourself as you learn about money matters here. The information offered below is intended only as a guide to help you get started. If you're worried that you're running out of time and there's not long left, you can get more advice here.
Understand Probate
Do I need a will? Yes. Check that your partner or spouse has one; then get a solicitor to check that it's legally binding and relevant to your needs. If they don't, get them to write a will now. You may also need to rewrite your own will.
Lasting Power of Attorney
An LPA removes crucial red tape, if your partner suddenly becomes unable to self-advocate. A solicitor can arrange one for you, or you can do it yourself using this online process. It must be registered, which can take over 10 wks.
Named Beneficiaries
It's essential that the intended people are formally named as beneficiaries of any pension, death in service or critical illness / life insurance policy pay-outs. This must be done by the policyholder when they have mental capacity.
Identify Debts
Debt isn't inherited in the UK, unless there was a joint loan or loan guarantee in place. But when a person dies any outstanding debt must be paid by the estate first. Read more here. Contact Citizens Advice or Stepchange.
Clarify Your Tax Status
As well as tax on the estate, a person must also pay income tax on any earnings before they died. The estate will need to resolve this with HMRC. You may need info from their employer, e.g. a P60 to complete this.
Understanding Critical Illness
Financial contracts may specify what happens on death, but not if illness prevents earning. This can be very stressful. You may need advice on how to request "exceptional circumstances" e.g. for mortgage payments.
Get Professional Advice
We recommend seeking professional advice. A financial planner can help you understand your long-term picture, including pensions, mortgages, etc. A financial advisor can recommend specific products or investments.
Account Ownership
List as many accounts and assets as possible. Put what you can into joint names, to make things easier. List digital assets. Most institutions will stop access to a single named account immediately after a person dies.
Track Your Spending
Many UK households live pay cheque to pay cheque. To reduce your long term risk you will need to know how much you spend. Tracking spending helps to identify the bills, subscriptions or habits that need to be changed.
Check for Bursaries
Some universities, colleges and private schools offer bereavement or hardship bursaries, if a parent has a terminal illness. Also some religious groups, professional bodies and trade unions make a provision for their members.
Ask for Help
A life-threatening illness is frightening, and it's common to have money worries alongside health fears. Your local hospice or Sue Ryder may be able to connect you with relevant grants, benefits or advice on costs.
Claim Your Benefits Early
Many families qualify for Universal Credit, Personal Independence Payment (PiP) or Carer's Allowance, although it can take a while to process. Find out more here or via Citizens Advice, apply as soon as you're able.
Don't Be Afraid To Ask for Help
Critical illnesses are often unpredictable and can rapidly change. We recommend reviewing your financial situation as early as possible, to give yourself confidence in decision-making before it's necessary. In many small ways you can reduce your own load. For instance, ask family members to help with research or talk through a decision with a trusted friend. If you don't understand something ask for an explanation, so that you feel informed.
We strongly advise that you get professional financial or legal advice, for your specific situation. An expert will be able to help you prioritise your effort and may identify solutions, which you might not have known were available.
Understanding UK Benefits
The provision from the UK government to support families during life-limiting illness and bereavement can change, and eligibility varies based on each person's situation. We recommend speaking with a representative from Citizens Advice as early as possible to understand which benefits you can claim and when, so you can apply as soon as possible.
Financial support, such as prescription exemption, can add up quickly and make a difference. You may want to look into an SR1 form (Special Rules), which can make applications easier and faster, with medical evidence. Availability of support changes with your situation, for instance the CHC funding (Continuing Healthcare), from the NHS is available for care in the last 12 weeks of life.
It's also worth being aware that there's currently no provision for a widow to claim their spouse's state pension in the UK. Current UK bereavement support is limited to a maximum of £9,500 paid over 18 months (eligibility varies). You must apply in the first 3 months, after your partner's death, to be eligible for the full support.
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