On 29th November 2024, the UK parliament voted on the “assisted dying bill” – officially known as the “terminally ill adults (end of life) bill”. If it passes, this new law will give terminally ill patients with fewer than six months to live the option of ending their own life.
MPs voted in favour of the bill and it passed to the committee stage, meaning it will be scrutinised by a cross-party group before another vote, expected in April 2025.
If parliament votes in favour of the bill again, the new law could bring about a momentous shift in the way we approach end-of-life care in the UK, with wide-ranging implications.
While we don’t yet know whether the law will pass or what the precise details will be, there are some potential implications for your finances.
Read on to learn three reasons you might need to review your financial plan if the assisted dying bill passes.
1. You may need to reconsider and communicate your own wishes when creating an estate plan
When creating an estate plan, it’s important to consider your wishes for the end of your life. Normally, these decisions are about who should handle your affairs if you’re deemed to be mentally incapable of doing so yourself, or how you might want your estate to be divided after you’re gone.
If the assisted dying bill passes, you may also need to consider whether you would take the option of ending your own life if you were diagnosed with a terminal illness.
While assisted dying could give you and your family more control towards the end of your life, it’s a very complicated decision for anybody to make. That’s why you may benefit from considering it ahead of time and discussing it with your loved ones.
By incorporating the decision into your estate plan when making other important choices, you can ensure that you’re prepared for the situation should it ever arise.
2. Assisted dying could affect what your family inherits from your estate
Depending on the precise rules the government decides on, assisted dying could affect the wealth that your family inherits from your estate after you’re gone.
Currently, if you help a person end their life in an overseas assisted dying clinic, you may be affected by the “forfeiture rule”. This prevents you from inheriting anything from a person’s estate if you unlawfully killed them or aided in their death.
These rules can be very stringent, and you may forfeit your right to inherit from a person’s estate if you helped them book travel to a euthanasia clinic, for example.
Naturally, if the assisted dying bill passes, the government will likely make provisions for this, and your family may not forfeit their right to inherit from your estate if you opt to end your life.
That said, there might be certain situations when the rules of forfeiture still apply. For example, if a judge suspects that beneficiaries of a Will pressured a person to end their life, this might affect their inheritance rights. There may also be concerns if you update your Will shortly before a decision to end your life.
Additionally, the proposed rules of the assisted dying bill state that it only applies to those who have six months or less to live, and meet the following requirements:
- The person must be of sound mind.
- The person must make two declarations, both witnessed and signed, confirming they want to end their life.
- The person must undergo assessments by two independent doctors who both agree the person is eligible for assisted dying.
A judge will then decide if the criteria have been met. As these requirements are very narrow, it’s crucial that you and your family consider whether you will fall foul of the rules of forfeiture.
The specific guidelines about assisted dying may change before the bill becomes a law. Regardless, to avoid any issues, you will need to make sure that you have a clear Will in place ahead of time, and you take all the required steps before choosing to end your life. It may be worth seeking professional advice to make sure you don’t inadvertently break the rules.
3. The details of your protection policy might change
Protection is another key area that could be affected by the assisted dying bill. Currently, when you take out a life insurance policy, you normally answer questions about your age, lifestyle, and health. Your premiums are typically based on this information and if you’re older or in poor health, you could pay more.
It’s not yet clear exactly what impact the assisted dying bill will have on contracts of insurance, however, there is a significant chance that coverage or the fine print of insurance policies may change. That’s why you may need to review your protection and ensure you and your family still have adequate cover.
Further to this – to ensure there was no foul play – insurers may follow a more comprehensive due diligence process before releasing the funds if the deceased chose to end their own life. As such, your family may need to prepare for a delay in receiving a life insurance payout.
Get in touch
If the assisted dying bill does pass into law, we can help you determine how this might affect your financial plan.
Email hello@fcadvice.co.uk or call 0333 241 9900 today.
Please note
This article 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, Lasting Powers of Attorney, or will writing.
Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.