Why Use A Financial Adviser To Write Your Will?
Deciding what will be included in your Will is one of the most significant financial decisions you will make. Your Will determines exactly what you would like to happen to your estate when you die, how assets such as your personal possessions, property, savings and investments are distributed to those you care for and want to help.
Many people have simple estates which are straightforward to organise. For others, a Will is just the first piece of the estate planning puzzle. Working with an independent financial adviser (IFA) to write your Will can provide you with confidence that the decisions you are making take in to account your whole financial situation.
By organising your Will yourself, your inheritance tax liability may not be assessed properly and your loved ones may be faced with an unexpected bill after you have gone. This bill must be paid before any assets are distributed to your beneficiaries and can run to a substantial amount.
When writing your Will, an IFA will be able to advise you on your inheritance tax position and discuss ways to reduce any tax liability. For example, you can give away gifts each year - £3,000 in one go and £250 to many different people.
It is possible to give larger amounts of money to loved ones and ‘Potentially Exempt Transfers’ are a great way of doing this during your lifetime but are still deemed to be part of your estate for 7 years after the gift is made. An IFA can advise on various ways to cover any IHT payable on these types of gifts.
There are many other areas an IFA can assist with when writing your Will - the process is far greater than just taking a note of your wishes and we would always recommend taking professional advice. As well as analysing your entire financial situation when making your Will, we can also organise Lasting Power of Attorney for you to ensure your interests are protected while you are still alive too.
Joining The Dots with a Financial Adviser
There is more to consider around making a Will than people think. In practice, when families begin to consider their Will more holistically, especially with our guidance as later life financial and legal specialists, they are often surprised to discover gaps and inconsistencies in their overall estate plan.
A well-considered Will arrangement usually brings together several areas of financial and legal planning. Wills, Trusts and Lasting Power of Attorney form part of that picture, but so do questions about inheritance tax, long-term care considerations and investment management.
Alongside Will 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, through the Will, on death.
For some families, another important aspect of estate planning, particularly with regard to the Will, 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, protection from care costs and inheritance tax strategies.
Many people find that different parts of their estate planning have been put in place at different times of their life. For instance, a Will may have been written long ago when circumstances, wishes and goals were completely different and probably were not discussed at length even then.
Writing your Will may have seemed straightforward and sensible at the time. But without reviewing it together regularly with your financial (and life) objectives 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.