The Cost Of Being Unprepared In Estate Planning
Estate planning is about you deciding what you would like to happen to everything you own on your death and how to provide for those you’ll leave behind. Ensuring your affairs are in order not only makes things easier for your loved ones but can also reduce inheritance tax and protect your estate for your beneficiaries.
The first step to estate planning is often to make a valid Will. A staggering 60% of adults in the UK don’t have one! If you die without this, your estate will be subject to The Rules of Intestacy which don’t take in to account your wishes.
An often-overlooked reason for preparing a Will is to make the estate administration process as clear and straightforward as possible.
Take time to choose the most appropriate executor(s) to deal with your estate. Faced with a wide range of actions required in the immediate aftermath of a death, and as executors are often close relatives, having this extra responsibility can provide another great stress at an already highly emotional time.
Do you have Lasting Power of Attorneys in place? Without appointing an attorney to look after your health and/or financial affairs, you and your loved ones lose the ability to make decisions about this if you lose capacity to make them yourself. Without an LPA, your loved ones may be faced with the costly and stressful route of dealing with the Court of Protection.
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.