Settle up this spring: 3 things to do to protect your assets
WE SPOKE TO ILAWS ABOUT HOW YOU CAN PLAN FOR THE FUTURE, WHATEVER IT MAY HOLD
SPRING is well and truly here. e daffodils are blooming, the weather is warming, and the rain is pouring. And just like nature, for many, spring is a time to start afresh - whether that’s getting ready for the annual spring clean or make exciting plans for the months ahead.
Yet when it comes to planning ahead, it’s easy to focus solely on the good things - such as a holiday abroad or how you’re going to redecorate the garden - which means we often neglect important things like making sure our financial and emotional assets are well protected, as well as that of our loved ones.
And it’s not only something to be considered in later life, but at any age, as we never know what’s around the corner; you could unexpectedly fall victim to an illness or accident.
However, to help prevent unnecessary heartache and worry in these unfortunate, worst-case scenarios, there are things you can do and put in place should you ever need them.
Here, estate planning professionals ILAWS details three potential courses of action you can take now to ensure you’re in the best position possible in future when it comes to your welfare and assets.
1. APPOINT A POWER OF ATTORNEY
e rst measure you can take in terms of future planning is 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 finanical-assets - and means you have personally selected the person who will take control.
2. SET UP A TRUST
As well as a POA, another legal tool you can harness to help protect your financial assets, is a property transfer and/or trust.
With conditions like dementia and Parkinson’s on the rise, according to recent statistics by dedicated UK charities, you may nd yourself needing to move to a care home for extra, round-the-clock care.
In this instance, 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. And if 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, a trust could help.
By setting up a trust, you can maintain control over your nancial assets, including your home. 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-size-fits-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.
“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
When planning for the future, it’s also recommended to have a Will in place, for maximum protection.
If you die without a Will, the rights of succession will dictate how your money and assets are distributed after your death, which may not be in the way that you wanted. For example, if you’re not married or in a civil partnership, your partner won’t automatically inherit your money.
Or if you’re a parent with young children, a Will means you can determine who assumes guardianship if anything happens to you, as well as leave instructions on how they should be cared for.
What’s more, a Will allows you to detail things that may be otherwise overlooked. In the modern age, it’s particularly likely that we have digital assets e.g. money stored in online shopping accounts or personal details on social media accounts. Having a Will will enable you to ag these and share plans on what to do with them after your passing.
CONTACT ILAWS TODAY
With over 30 years of experience, ILAWS is the estate planning professionals of choice for many across Scotland, understanding your needs and providing quality advice.
The team will ensure the whole process is smooth - and will visit you in your own home if needed.