The Age of Ultimate Privacy

Probate and Estate Administration | 12 September 2024

We all place a high value on our privacy, not just because it guards against theft and identity fraud but because we don’t want to share personal and financial information with anyone, often including those closest to us.

Technology and legislation have advanced and developed to ensure ultimate privacy; online password-protected portals, face recognition social media, and GDPR to prohibit information sharing, to name but a few. Over the coming years, there will likely be further advancements. We already see cryptocurrency, artificial intelligence that can draft complex documents and retina scanning for building access. Of course, all these things serve a very important purpose, and we can all be reassured that information held about our health, finances, lifestyle and even shopping habits will not fall into the wrong hands.

The unforeseen result of these protections is that when someone passes away it can be incredibly difficult to establish their assets, close social media accounts and deal with third parties to clear liabilities. Most bank accounts, investment portfolios, utilities, mortgages, and insurance policies are online with little or no paperwork. If the deceased’s estate is valuable enough to attract Inheritance Tax, a full tax return must be made to HMRC, and this requires exact date of death values for every account and liability. If an estate is non-taxable, date of death values can be estimated but, even then, it is only possible to estimate figures when accounts are known.

Insurance policies are particularly difficult to locate. They often involve a one-off payment made years before death and, unless paperwork is available, they are hard to trace. Many people now choose to pre-pay their funeral. This is effectively an insurance policy and, again, is often a single payment. Estate administration will always involve an element of detective work, but this is likely to get much more difficult in the future. The result may be that dormant accounts, investments or policies are not located and funds are not passed onto the intended recipients.

There is, however, a simple solution to the problem. Make a list whilst you are alive. Include your bank accounts with account numbers and sort codes, investments with reference numbers, details of any insurance policies, utility providers, mortgage, loan and credit card details and passwords for social media and online accounts. This list can be handwritten and does not need to be stored on a computer if you have concerns about security. The list can be placed in a sealed envelope and stored with your Will.

Wills should be reviewed every three years to ensure that they still reflect your wishes and that is a great time to update your information list. You don’t have to reveal any information whilst you are alive, but you can tell your loved ones that you have made the list and where it is located. Even if you don’t wish to share it or if you have no-one in such a position of trust, the required details will be available for the executors of your estate when the time comes.

It can also be useful to include some personal information, such as date and place of birth, any previous names you have been known by, your occupation and national insurance number. This can assist the person registering your death, particularly if you have chosen for this to be undertaken by a professional.

Technology is a fantastic tool but sometimes all that is needed is a straightforward, practical, common-sense solution.

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