Where to start - new years resolutions?

[lionmummy]

DMIL had an accident and whilst we can help her manage the health stuff, DH & I have realised that if she had died (fortunately she is fine, just temporarily incapacitated), we would have no idea how to sort out her financial affairs.

I know this is a morbid one but does anyone have some advice as to where to start in getting herself in a more organised state (and we can gently guide on this). Imagine that writing a will is a good start. thank you!

Has she asked you to help?

Yes, she wants to get things in order but doesn't know where to start - like me.

Had to establish that first. :) I'm a big fan of the free-to-download Microsoft 'Money' software for getting personal finances under one umbrella - let you decide on that. Information gathering is probably the best place to start. Can recommend investing in a small metal box-file since the biggest headache when dealing with someone else's finances is often lost documentation.

• (Assuming she has a bank account and doesn't just work with cash) Start with bank and credit card statements. Cheque stubs and receipts are useful if she's paid for things but the payment hasn't gone through yet. This should give you both a good picture of her day-to-day finances and highlight any issues.
• Investments, savings, passbooks, share certificates, premium bonds, ISAs, bonds, private pension etc. If she has any assets like these (and I know my own mother has money squirrelled away all over the place) sometimes the statements are less frequent or non-existent and therefore more likely to go astray or get overlooked. Make a note of each one and its balance. Update any passbooks and keep any eye out for statements dropping on the mat from now one.
• Insurance documents, coverplans, rental agreements, loan agreements, HP agreements, tax matters etc. Any documents of this nature need keeping carefully in case she needs to claim or in case you, on her behalf, need to query something.
• Property deeds (assuming she owns a house) may be with a mortgage company or she may have them. Another one to be kept in a safe place.

Once you've got all of the above assembled, depending on how much money, assets etc. are involved, you may think it's worthwhile getting hold of an idependent financial adviser to give some guidance on how to make her money work efficiently on her behalf.

A will is a very good idea for everyone. In fact, if you haven't got one yourself then you may find someone who'll do you a BOGOF deal :)

Cogito, thanks so much. This is really helpful. I definitely need to sort out a will too so bogof if I can.

Careful of IFA - They claim to offer free advice, but get paid on commission on the products they sell, so not always best. If less than about £50k unfortunately will pay more for advice than it is worth. Use cash ISA and trackers.
If more than £50k get a time based fee with all commission refunded to you.
Think about a power of attorney advice. This will give you the ability to act if your MIL becomes incapacitated (short term or long term) and also stops anyone else taking power over her.

tenminutewill.co.uk can sort a will for most peoples situation. I'm not connected with them, but it's online and very very competitive compared to going to most services.

Just to mention that certain investments can be protected from the local authority when assessments are made if long term care becomes an issue... ISA's are not one of them. Single premium bonds issued by life offices are, however there are other issues (tax planning etc) to consider. Action cannot be taken as 'avoidance' and therefore just investing in them immediately before care is required will not work. This is the sort of thing that a good IFA can assist you with, and hopefully add value. I would echo the advice that fee based is preferable, however ongoing advice is also essential as things change and what is a 'good' investment will not always remain so.