Why estate planning has become increasingly important
If you were born between 1946 and 1964, you’re part of what’s called the “Baby Boomer” generation, who profited from the growth years to the point where it is estimated that one in four Boomers are millionaires when pensions and housing wealth are taken into account. What may once have seemed like modest assets can now form a substantial estate, particularly as property values have increased across the UK.
As a result, more families are becoming exposed to IHT. Without proper planning, this can lead to unexpected tax liabilities and may reduce the amount ultimately passed on to children or other beneficiaries.
The importance of reviewing your will
A professionally prepared will remains one of the most important elements of any estate plan. It ensures that your estate is distributed according to your wishes and provides clarity for your family at what can already be a difficult time.
However, many people do not review their will regularly. Significant life events such as marriage, divorce, retirement, purchasing property or the arrival of grandchildren may mean that an existing will no longer reflects current intentions.
A carefully drafted will can also incorporate additional planning where appropriate, including provisions to protect vulnerable beneficiaries, arrangements for blended families or trusts designed to help manage inheritance tax exposure. Reviewing your will periodically with an experienced solicitor can ensure it continues to reflect your wishes.
Planning for the unexpected with lasting powers of attorney
While wills deal with what happens after death, it is equally important to consider what might happen if you were unable to manage your own affairs during your lifetime.
A Lasting Power of Attorney allows you to appoint trusted individuals to make decisions on your behalf if you lose mental capacity. This may include decisions relating to your finances, property or health and welfare.
Without a valid power of attorney in place, family members may need to apply to the court for authority to act, which can be both costly and time-consuming.
Take time to review your estate plan
Estate planning should never be treated as a simple box-ticking exercise. Every family’s circumstances are different and factors such as family relationships, property ownership, pensions and long-term financial planning can all influence which arrangements are most appropriate.
Taking the time to plan now can provide lasting peace of mind for both you and your family. Contact Downs Solicitors to see how we can help.
Contact Liz Dalgetty
