Spring into action and plan for whatever the future holds
HERE, ILAWS EXPLAINS THE STEPS YOU CAN TAKE TO PROTECT YOUR WELFARE AND YOUR ASSETS
AS we begin to see brighter, longer and slightly warmer - days, it’s clear spring is on the way. And with the change in season, many of us will be making plans for the exciting months ahead.
Whether a holiday abroad is on the cards, or simply some more time spent outdoors on local walks or in the back garden, there’s lots to look forward to.
But although our favourite seasons of the year are knocking at the door, it’s important not to forget those vital necessities and plans we must put in place to protect ourselves and our families whatever the future holds.
is includes making sure your nancial assets and welfare are well protected - and is not only something to be considered in later life, but at any age, should you unexpectedly fall victim to an accident or illness.
PROTECT YOUR WELFARE WITH POWER OF ATTORNEY
One such 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 estate planning professionals 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.
UTILISE A TRUST TO PROTECT YOUR HOME
As well as a POA for your welfare and/ or nancial assets, there are other legal tools you can harness to help protect the latter, especially if you
nd yourself moving to a care home in later life.
And nowadays, this seems all the more likely. 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 currently average over £50,000 a 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.
In England, there are plans now in place to cap the amount taken from an individual at £86,000, but there is currently no such cap in Scotland.
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 both 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 just some things we just need to do, such as having car or home insurance. None of us enjoy paying for insurance policies, 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.”
EXTRA PROTECTION AND MORE THROUGH 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, you should 100 per cent have a Will.”
CONTACT ILAWS TODAY
With more than 30 years of experience, ILAWS is the estate planning professionals of choice for many residents across Scotland, understanding your needs fully and providing quality advice.
e team will ensure the whole process is smooth - and will visit you in your own home if needed.