You've worked hard for everything that you have, right? So, why risk losing all you have gained from deliberately procrastinating from organising your financial affairs?
You can carefully plan for the future inheritance of your loved ones by just spending a few hours intricately planning your Estate and organising how and to whom your money, property and any other assets deemed valuable will be distributed after your death.
It is naïve and a common misconception to think that once you pass, your assets will automatically be inherited by your next of kin. This isn't always the case, even when there is some kind of provision in-place, the burden and stress created when your loved ones are claiming for their inheritance.
• Make a Will - Without a Will the state will decide on the distribution of your estate. Now, that may sound like a good idea and it will go to whom you intended it for, but having a Will written will eradicate any bitter family members or past relationships from making a claim and potentially benefiting from your estate.
• Add a Trust to your Will - If you own your home the majority of your wealth will be tied up in your house or other properties you may own. You can't simply give your home away without it being deemed as Deprivation of Assets. If you're relying solely on your Will to dispose of your assets and the value of said assets has eroded over time, there will be little left for your beneficiaries, after ones death.
• Lasting Power of Attorney (LPA) - LPAs are the legal documents that will give your chosen Attorney (usually your spouse or children) the power to handle all your affairs and make the decisions on your behalf, should you lose mental capacity.
There are two types of LPA:
A "Property and Financial Affairs" LPA gives your Attorney the authority to deal with buying and selling your property, your bills, bank accounts and investments.
A "Health and Welfare" LPA covers decisions about health and care and even deciding where someone is to live. This can only be used if someone is incapable of dealing with such matters themselves.
• Have a Funeral Plan, and protect yourself from inflation - As morbid (excuse the pun) as that may sound, it is essential. These days a typical funeral using a funeral director costs around £3,600. However, you can pay much more or less than this, depending on how you want to remember the person who’s died, what you can organise yourself and how much you can afford to pay.
Funeral cost inflation has averaged about 7% over the last 10 years. According to the Mintel report of September 2012, the average cost today of a funeral is in excess of £3,284. It is estimated that the average funeral, assuming 7% inflation, will cost over £6,900 by 2023, and £13,600 by 2033.
• Consistently update your Estate Plan - At The Will Associates, we recommend that you review all of your plans between every 2-5 years. This will keep you constantly up-to-date with the latest laws and legislation regarding your assets. This will prevent what you have in-place becoming null and void.
Spending a little time ensuring that you have these 5 tips in-place could potentially save you money in the long-term and benefit your loved ones. Contact The Will Associates today by calling us on 0800 9500 700 to arrange a free, no obligation appointment with one of our highly-trained experts at a time convenient for you and your loved ones, in the comfort of your own home.