A lack of awareness about where family documents and financial policies are kept could leave millions at risk of delays and potential penalties during periods of bereavement, Canada Life research has found.
Nearly half (47%) of UK couples do not know where their partner’s will is kept, while 66% are in the dark about the location of their parents’ will. The gap widens to 87% for siblings.
While private pension wealth is the second largest component of household wealth after property in the UK, more than a third (37%) of those in a relationship would not know where to find their partner’s pension documents, rising to 58% when it comes to locating their parents’ pension policies.
However, if will or pension policies cannot be located, executors and personal representatives may face delays in gathering the information needed to distribute assets and settle the estate, slowing down the probate process. With pensions coming into scope for inheritance tax from 2027 and personal representatives responsible for tracking down these policies, not knowing where to find the relevant documents could not only delay payments to beneficiaries but increase the risk of penalties if an inheritance tax bill is not settled in time.
The research also found that 40% of adults would not know where to find their partner’s life insurance policies, and nearly half (47%) would not be able to locate their partners’ debt and loan agreements.
Liz Hardie, tax, trusts and estate planning specialist at Canada Life, said: “It’s easy to put off conversations about where important documents are kept, but the consequences of not knowing can be serious, particularly as previous research has shown that the most common problem encountered by executors of a will is tracking down policy documents.
“Whether it’s delays in accessing funds, missing out on benefits, or facing unexpected liabilities, families could be left in a difficult position simply because they didn’t have the right information at hand.
“Make time for the conversations that matter. Knowing where key documents are kept isn’t just about being prepared for the worst, it’s about making life easier for everyone, whatever the future holds.”
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