Estate Planning Steps
In order to ensure that on your death your wealth is distributed in line with your wishes, it is essential you make arrangements. Consider the following steps in organising your estate plan:
Talk openly with your family about what you would like to happen on your death. The subject of dying and inheritance is often viewed as a taboo subject in families, but unless those conversations take place, it may be difficult for family members to understand your requests.
Write a will – a will is a way for you to legally express how you want your assets to be distributed on your death. Astonishingly, around 60% of adults in the UK have not written a will. Ensure it is kept up to date.
Create a will trust – a will trust only becomes effective when someone dies and is a way for assets to be protected and distributed to beneficiaries in the future.
Write policies in trust – ensure any life assurance policies are written in trust. This will enable the money to be passed on to beneficiaries immediately without having to wait for probate.
Make gifts during lifetime – you can use your annual gifting allowance of £3,000 or you can use a number of trusts to pass money on tax efficiently. You can also pass on family heirlooms during your lifetime.
Trust planning – if you value control and certainty over how your wealth is distributed, combined with possible inheritance tax advantages, trust planning should be considered. There are a wide range of trusts to choose from which have varying levels of access, flexibility and inheritance tax efficiency to suit your needs.
When you have worked hard to acquire wealth or have been fortunate enough to inherit some family wealth, the natural instinct and desire is to protect that wealth for future generations. Let us know if you need some assistance, it’s our bread and butter.
Joining the Dots with a Financial Adviser
Often when people hear the phrase ‘Estate Planning’, they often think of writing their Will, perhaps incorporating a Lasting Power of Attorney as explained above. But in practice, Estate Planning often involves more than many people think. When families begin reviewing their estate plans more holistically, especially with our guidance as later life financial and legal specialists, they are often surprised to discover gaps and inconsistencies.
A well-considered estate plan usually brings together several areas of financial and legal planning. Wills, LPAs and Trusts form part of that picture, but so do questions about inheritance tax, long-term care considerations and investment management.
Alongside legal arrangements, financial planning considerations are often closely connected. Investment decisions, pension planning and inheritance tax allowances can all influence how efficiently assets might pass between generations both in lifetime and on death.
For some families, another important aspect of estate planning, particularly with regard to LPAs, is considering how financial resources might be used later in life, particularly if care or support becomes necessary. With this in mind, thoughts turn naturally to aligning investment management, Immediate Care Plans and inheritance tax strategies.
Many people find that different parts of their planning have been put in place at different times of their life. A Will may have been written many years ago, LPAs actioned at some point but long forgotten about, pensions and investments taken out whilst still working.
Individually, each decision may have been sensible at the time. But without reviewing them together, it is not always clear whether the overall plan still reflects current intentions and your life situation as it stands. It is critical that the financial and legal arrangements for your estate planning are perfectly aligned. If they are not, it can create unwanted upset down the line.
Local Estate Planning Events
To help people understand these issues more clearly, we will be running a series of free Estate Planning seminars locally this June and July. These sessions will explore key elements such as Wills, LPAs and Trusts and explain how they work alongside your financial planning arrangements like inheritance tax, investment management and care fee planning.
Tuesday 23rd June - 2.30pm - 3.30pm - St Peter’s Church, Henleaze
Wednesday 24th June - 10am - 11am - Thornbury URC
Tuesday 30th June - 6pm - 7pm - Stoke Lodge, Stoke Bishop
Wednesday 1st July - 2.30pm - 3.30pm - St Peter’s church, Henleaze
Tuesday 7th July - 10am - 11am - Henleaze Bowling Club
Call 0117 3636 212 or email community@haroldstephens.co.uk to book your place.