There are some weeks that Karen Houlihan of Keohane’s Funeral Directors in Montenotte, Cork, has two or three calls from people who, she says, “want to get a few things sorted”.

She says it is not unusual any more for people to plan ahead for their death while they are still alive. “A lot of people just like the idea of having everything organised so their family isn’t left guessing.”

Houlihan says with funeral planning someone can sort everything while they are still alive — except when and where they are going to die.

“People can pick their music, the type of service, the coffin, what they’d like to wear, even if they want a slideshow or photos,” she says. “Some people come in with a full list, others only want to make one or two decisions. There’s no right or wrong way, whatever makes them feel comfortable.”

In general a funeral will cost between €3,000 and €4,000.

“It’s actually a lovely thing to do for your family. Even a small bit of preparation takes a huge weight off their shoulders later on,” Houlihan says.

A funeral, of course, is just one financial consideration that will be needed after someone’s death. There are many ways someone can plan financially for their passing.

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Steven Barrett of Bluewater Financial Planning says that having a will is the most important thing to do as it speeds up progress and it ensures that assets go to those you want to get them. There are also ways to minimise how much goes to Revenue.

“If you are in old age and have significant assets, use the annual gift exemption to give your loved ones €3,000 a year without it impacting on their future inheritance,” he says. “This can be given to your children and grandchildren, so a family of five can receive up to €15,000 a year tax-free, or €30,000 a year [from both parents].”

Barrett also says to create lists because an executor of a will must collate assets and expenses once someone dies.

“Have a list of where your bank accounts, pensions and investments are. This is especially important if some of your assets are held with non-mainstream investment providers that your executor may not think of asking. If you use a financial adviser, put their contact details in your file for who to contact.”

An executor will also have to cancel bills, so they need to know what to cancel. This could also mean having a list of passwords.

“We’ve come a long way since we used to only have basic utility bills. We live in a world of subscriptions, so you may have multiple newspaper subscriptions as well as Netflix and other online subscriptions that may need to be cancelled. Even things like Apple iCloud, make sure you download all the photos before cancelling the subscription,” Barrett says.

Teresa Bruen, financial planning consultant at Gallagher, says that preparing for the later stages of life is something many people put off but doing it early can spare families confusion and financial strain.

“Loved ones should be able to easily find the details of bank accounts, life insurance policies, investments, loans, credit cards and any company shares. It is also helpful to keep certificates, property deeds and important identification documents together. A list of contacts, such as your solicitor, accountant or financial adviser, can guide family members when they are trying to settle your affairs.”

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It is also worthwhile to think ahead about finances. When someone dies, their assets are usually tied up until probate is completed, which can take months.

“To ensure dependents are not left struggling with rent, mortgage payments or other essentials, it is sensible to have some funds in an account that a trusted person can access immediately. It provides stability while legal processes run their course,” Bruen says.

“An equally important step is preparing for the possibility of losing the ability to manage your own affairs. An enduring power of attorney allows a person you choose to handle financial, legal or personal care decisions if you become unable to do so because of illness or an accident. Without this, families may be unable to access funds, make payments or act on your behalf without lengthy court processes. Putting this in place can prevent significant complications.”

Pensions should not be overlooked either, Bruen adds. “Pension arrangements often sit outside the normal estate structure and have their own rules for who receives any remaining benefits. Reviewing and updating beneficiaries is crucial to ensure these benefits go to the right people.”

Glenn Gaughran, head of business development at Independent Trustee Company, points out that deciding between an annuity and an approved retirement fund (ARF) with a pension will be important.

An ARF is a personal retirement fund where someone keeps the money in their pension pot invested after retirement. An annuity is an annual pension someone can buy with the money in their pension pot when they retire.

“A big advantage of ARFs is that any money remaining in your ARF after your death can be left to your next of kin or family,” Gaughran says.

“This isn’t always the case with annuities, as with some annuities your pension simply stops when you die, even if you pass away shortly after retiring. For this reason, a guaranteed annuity is something you could consider if you wish to take an annuity rather than an ARF when you retire but also wish to ensure your loved ones get the benefit of that annuity when you die.”

With a guaranteed annuity, your pension will continue to be paid to your estate for a certain amount of time, usually five or ten years, even if you die shortly after buying your annuity. These annuities are more expensive than the ones without a guarantee, but they offer peace of mind.

A section 72 policy could also be worth considering, according to Barry McCutcheon, protection propositions lead at Royal London Ireland. This is a type of whole-of-life insurance cover where proceeds are tax-free, as long as the proceeds are used to repay an inheritance tax bill. It is possible to set up a section 72 policy so that it covers your children rather than a surviving spouse, as the surviving spouse is exempt from inheritance tax already.

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“With inheritance tax it is important to do what you can to reduce the inheritance tax liability for your family — especially in relation to capital acquisitions tax reliefs and exemptions,” he says.

A section 72 policy can be used to help your children pay an inheritance tax liability they may face when you die. Where the proceeds of a section 72 policy exceed the inheritance tax bill, the surplus becomes liable to inheritance tax, however.

Houlihan also points out that there are supports for funeral finances. “Social welfare might help depending on circumstances. Some people have credit union insurance and sometimes families discover an old policy they forgot about,” she says.

“People are far more open now. And most of them say the same thing: that they just don’t want the kids worrying. It’s very practical, very thoughtful.”