I'm the breadwinner in the Fig house and I manage our finances. Due to multiple health conditions, Mr Fig works part-time and will probably never earn enough to support himself. I'm 40, he's just a bit younger, no children.
None of his conditions are defined as life-limiting. However, while I plan to live to 85, both my mother and grandmother had cancer in their 50s. At any rate, he is essentially a dependent, so it's sensible to make provisions for any emergencies and after my death. He doesn't receive any benefits and I'm not counting on the dwindling safety net of social security.
An added complication is that Mr Fig is American, though he has UK citizenship. He's unlikely to ever move back (not least due to healthcare costs) but he's obliged to keep filing US taxes. As we no longer have any major interests there, he won't owe taxes for the foreseeable future.
This is my initial list of what we need to consider and I'd welcome your comments and suggestions. I'm sure there are things I've overlooked.
Life insurance
- I’d like cover to repay the mortgage and cover many years of reasonable living costs, which I assume might be quite expensive. I may start a separate thread at some point as I have many questions and I need to get this right
My pensions
- Local government scheme – he’s named as beneficiary and will receive a small annual pension plus c£90k death benefit if I die in service
- SIPP from past job – I assume he’ll get something from this. I'll check both before I plan life insurance
His pensions
- We have a few £k aside but not currently invested. I need to help him set one up but I believe there are limits on how much can be invested in a pension on a low income
- SIPP from a past job – small income expected
- We need to look into the US tax implications of a foreign pension, though he may renounce citizenship later in life
- We don't plan to set up a LISA for him as the bonus would be taxed by the US
Cash/future investments
- Savings are spread across several accounts and I’m about to start investing
- We have an emergency fund of £15k
- Accounts are all in my name (to avoid the hassle to US tax reporting) and I plan to type up all the details
- However, I'm moving some cash into his name to provide ready access to some money
Debts
Legal papers
- Wills: if I die first, everything goes to him. To help him cope, my sister is named as executor, with a friend named as back-up
- Power of attorney for both of us: under consideration, would pass all decisions to each other
- Living will and funeral wishes for both: also under consideration
Possible inheritances
- Nothing likely from US family
- My lovely parents have made some provision for him in case they all outlive me
All of the above to be reviewed every few years