Combat future life storms with these three simple steps
ESTATE PLANNING PROFESSIONALS, ILAWS, SHARES WHAT YOU CAN DO NOW TO HELP YOUR FUTURE SELF
OVER the past week or so, we’ve witnessed a huge storm sweeping across the country, bringing gusty winds and signi cant downpours with it. Not to mention, an incredible, once-in-a-lifetime solar eclipse across the pond. Life continues to be unpredictable, whether it’s the ever-changing weather or unique occurrences, there’s always something new to experience, battle and live through.
And though the unpredictability of life is often regarded as what keeps it exciting, there are de nitely situations you don’t want to nd yourself in without having su ciently prepared beforehand.
is includes a multitude of things but, most especially, concerns our health and the provision of our loved ones should something unfortunate happen to us, like an unexpected illness or accident.
We often can’t prevent these things from happening, but there are ways we can lessen the impact of them on ourselves and our nearest and dearest, starting from making sure our future wellbeing and nancial assets are well protected in advance.
Here, estate planning professionals ILAWS shares some actions you can take now to help you and your loved ones in the future.
1. APPOINT A POWER OF ATTORNEY
One provision to consider is appointing a Power of Attorney (POA). A POA allows you to nominate someone you trust - such as a relative or close friend - to make decisions on your behalf, should you become mentally or physically incapacitated and no longer able to make them yourself.
It could also help to provide much-needed peace of mind for both you and your loved ones, knowing there’s a secure plan in place whatever may come. Tony Marchi at ILAWS, said: “Power of Attorney is essential nowadays because we all get older and pass away. “ough it isn’t mandatory, think about whether you have building or contents insurance - that isn’t mandatory, but if you don’t have it and one day need it,
you’re in trouble.”
As long as it is in place before you are incapacitated, a Power of Attorney gives you long-term protection relating to your welfare and nanical assets - and means you have personally selected the person who will take control.
2. SET UP A TRUST
As well as a POA, there are other legal tools you can harness to help protect your nancial assets speci cally, especially if you nd yourself moving to a care home in later life.
is is proving to be ever more prevalent nowadays too - according to recent statistics, conditions like dementia and Parkinson’s are on the rise, meaning many of us may end up requiring additional care.
But should you need to go into a care home, your nancial assets namely the family home - could be at risk. If you have capital assets worth £29,750 or more, you are required to meet your own care costs in full, which are continually increasing and currently average over £60k per year.
is means that if you go into care, and your pension and savings do not su ciently cover the cost of fees, the local authority could take your home.
Whilst it is illegal to deliberately stop the local authority from taking money to pay for care home fees, there are legitimate options available o ering protection, including property transfers and/or trusts.
By setting up a trust, you can maintain control over your nancial assets, including your home, even if you move into a care home in later life. With a trust, you will become a ‘trustee’ and be able to retain legal ownership and control of the property.
Take a husband and wife for example. If they move their home - or part of their home - into a trust, they become ‘trustees’. Should one or both of them go into care, the property cannot be touched as it is not legally owned by them, but is owned by the trust.
Nothing can a ect the home while it is protected by the trust, and when the couple passes away, their children or loved ones - as ‘bene ciaries’ - will inherit everything in the trust, such as the family home. Tony said: “ere is no one-sizets-all solution, but we can o er options - such as a trust - to prevent the sale of the house.”
Even if you have a mortgage with the house, or equity release, you can still protect your home. And depending on your circumstances, you don’t necessarily have to be mortgage free to be protected either.
Tony continued: “In life, there are some things we just need to do, such as having car or home insurance. None of us enjoy paying for them, but we know it’s the sensible thing to do. It gives us peace of mind, as we know that if anything were to happen, we would be covered.
“When it comes to trusts, the cost varies from property to property, depending upon its value and individual circumstances. But it is much less expensive than most people think.”
3. WRITE A WILL
For maximum protection, it is crucial that a Will should be put in place - and it’s something that needn’t be time-consuming or complex.
“Lots of people put o writing a Will because they think it’s complicated,” said Tony.
“But we make it a simple and inexpensive process at £60. If you own a property especially, you should 100 per cent have a Will.”
CONTACT ILAWS TODAY
With over 30 years of experience, ILAWS helps many individuals and families across Scotland to plan for the future, understanding your needs and providing quality advice.
e team will ensure the whole process is smooth - and will visit you in your own home if needed.