N01E - Pre-death Planning

Not surprisingly, many people do not feel the need to organize their affairs in anticipation of eventual or sudden death. Consequently, when death does occur, the next of kin assigned to wind up their estate, has the daunting task of determining what assets and liabilities the deceased has left behind. This bulletin deals with the ordering of an individual's or a family's administrative and financial affairs, so that, when a death occurs, funeral and post-death estate administration can be conducted with the minimum of distress and to the best financial advantage of the surviving family. A list of official documents that may be required pre- and post-death, Portuguese terms with their English language translation, and a list of the principal departments/offices dealing with the above documentation can be found in Appendix C. In general, it is advisable to ensure that one's executor or lawyer is appropriately briefed on one's personal affairs so that estate administration is easily handled after death.

Administration
A well-ordered filing and record system is of immense help to those responsible for winding up the affairs of someone who has died. It is also a great aid to smooth administration if the person responsible - generally a close family member - can be aware of the existence and location of records and files prior to the death. Not everyone naturally organizes their administrative affairs well, but in such circumstances, it is good practice to have files and records put in order professionally if old age or ill health indicates that death is on the horizon. Business agencies or sometimes law practices, can handle such work. The following is a categorised list of the most important files or records to which reference will need to be made after the occurrence of death.

Filing
Insurance policies, deeds, scripts, share certificates, and other legal documents (if not held at a bank or by a financial advisor) should be kept together in a convenient box file for easy identification and access. Bank statements, tax records, and medical expenses should also be kept (at least for the current fiscal year) until all tax liabilities are resolved. If valuable documents are held in a safe, the next of kin should know where to find the key or combination. Similarly, if they are held in a safety deposit, you may want to consider giving your next of kin joint access.

Banking Affairs

• List details of each bank account by type (cheque, savings, credit card, etc.)

• List details of all direct debit arrangements (utilities, subscriptions, covenants, etc.) 

• List details of mortgages and loan accounts

• List items held in Safe deposits

It is advisable for partners to operate bank accounts jointly so that, in the event of death of one partner, the other can still have access to funds while the death is not known by the bank. Note however, that Portuguese banks do not provide for joint accounts but do allow joint signatories which would allow access to the account(s) in the event of death of the principal while the death is not known by the bank.

Investments

• List all investments stating holdings and date of purchase together with whom and where the script or certificates are held.

• Maintain records of income earned from investments with notices of tax deducted at source 

Insurance
List details of all insurance policies. These should include Whole Life, Pre-paid Funeral Plans, Property, Household, Vehicle, Pets, Medical, etc. Although this study focuses on death, these will need to be cancelled after the interment.

Taxation

• Maintain copies of all tax returns preferably separating tax liabilities in different countries.

• Maintain records of payments (or exemption) of the property tax "IMI". Maintain records of income received from employment.

• Maintain records of income through participation in commercial or agricultural enterprises (directors emoluments, dividends, share entitlements exercised, etc.

• Records of income from rentals received.

Pensions and benefits

• List details of all pensions and benefits received with dates of payments.

• Record of benevolent organisations that may be applicable to a surviving partner Wills.

Wills
It is a remarkable fact that many people die either without having prepared a will at all, or in such a way that problems result post death leading to lengthy and complicated procedures to obtain probate. It is advisable; not only to prepare a will but to be absolutely certain that it is drawn up in such a way that probate following death is not complicated. Your next of kin should be made aware that a will exists and with whom or where it can be is located.

This research is not about drafting a will due to its complexity. However, you can find this in a separate bulletin ‘Testament N06NL’. 
 

Medical
Many medical treatment and insurance tax costs can be offset against income tax. For this reason, it is advisable to retain VAT invoices of all medical expenses. Therefore, retain records of medical expenses at least for the current fiscal year.

Other Vital documents

• Birth and Marriage certificates

• Adoption or naturalization certificates

• Passport. Make sure that the details of your next of kin or other person to be notified in case of emergency are recorded in your passport and are registered with your consulate where this service is provided.

• Identity card (where these are issued)

• Residence card

• Driving permit

• Property Escritura and Caderneta Predial

• Wills, codicils and specific instructions following death

• Living Will, Advance Directive and Durable Power of Attorney

• Statement regarding disposal of organs — In Portugal, the law allows for the removal and use of body organs to be used for research or teaching from any deceased person. If you do not want your organs to be used for such purposes, you need to legitimise this by completing the appropriate “RENNDA” form at your local Centro de Saúde.
   

Burial related preferences

• Statement regarding body disposal if not included in will. This does not need to be notarised. It is suggested that copies of the statement be lodged with your consul and chaplain if they provide for this service.

• Funeral service arrangements and wording for epitaph on gravestone. Possibly have an obituary notice prepared stating the newspaper(s) of choice in which you want them published.

General

• List next of kin and/or persons to be notified in emergencies and the event of death together with telephone numbers and addresses.

• If you have a safe, ensure that someone knows the combination in an emergency.

• Consider leaving some record regarding jewellery and other valuables owned. It can happen that these disappear at the time of laying out the body.

• List all season tickets and memberships held (e.g. public transport, sporting and other entertainment functions)

• Prepare a notice of what should happen to any pets you own following your death

Aanhangsels

Appendix A – Documents that may be required pre- and post-death

Appendix B - Glossary of terms likely to be encountered pre- and post-death

Appendix C - Departments/Offices dealing with the above Documentation

Acknowledgements

The information in this bulletin was obtained from:

afpop archives 

Aliança Evangélica Portuguesa

Centro de Saúde in Portimão

Bombeiros in Portimão

Eduardo Serra Jorge (advocaat)

 Every care has been taken to verify the facts in this document. We therefore ask you to communicate
any errors that you may find with the data herein or suggestions for the inclusion of additional
information, to the afpop office. We would appreciate any constructive feedback on members' own
experiences with this subject matter

Other related bulletins in this series cover

Winding up an Estate N02E 
Wills N06E
Death and Burial I N07E
Death and Burial II N08E