Future is in your hands

Procrastination over matters affecting later life can be costly, says Ken Mann

ADVANCES in medical science and greater awareness of lifestyle choices mean we’re all living longer but it seems to be giving too many of us a careless attitude to managing our affairs for the day when the inevitable occurs.

Whether making a will regarding your estate, securing the destination of your assets for the financial future of younger family members, or the assurance that funeral arrangements are in place and covered at the costs that may apply years from now, planning for a range of outcomes is essential.

More than half of Scots don’t have a will, according to a research conducted on behalf of the professional body for Scotland’s solicitors, The Law Society of Scotland.

Alistair Morris, its president, stresses: “Making a will is often a simple and inexpensive process and can make life much easier for the loved ones you leave behind, especially for people with children or property.

“Your will can nominate a guardian to take care of young

children and can also prevent some of the difficulties and delays that sometimes occur for those left behind. The best way is to see a local solicitor.”

The research indicated that 24% of the sample made a will after directly witnessing the negative impact on others of not having one. Solicitors are frequently named as executors, perhaps with trusted family members or other

advisors. Changes to wills are easily made, but should be done via a solicitor to ensure validity. Additional legal instruments, such as Power of Attorney, may be a desirable.

The more specific advisory services of a wealth manager could prove indispensable where substantial assets are involved. The Wealth Management Association (WMA) lists suitable firms.

Some people consider a trust as a

vehi-cle for locking down the way in which such assets and related income is passed on. The fit with your purpose needs to be determined; there are issues in terms of timing and tax – both the income and inheritance classifications.

For parents wrestling with selecting the most effective way to provide for their sons and daughters, advice is crucial. Establishing what is referred to as a bare trust, for the children of the donor, needs care; usually any income in excess of a low three-figure sum per annum will be treated as the parent’s income for income tax purposes.

Funeral arrangements are regarded as a central issue. Whether you’re of a particular faith or no faith at all, your wishes should be specified in your will. For most, they should then be clearly discussed with a funeral director.

The Funeral Planning Authority (FPA) exists independently to help protect consumers’ interests. The shareholders of this limited by guarantee company are the Funeral Planning Council and the National Association for Pre-Paid Funeral Plans. If a pre-paid plan is your preferred way of paying for your final journey, then FPA guidance could be particularly valuable.

The National Association of Funeral Directors (NAFD) – established in 1905 and representing the interests of the entire spectrum of funeral directing businesses, who conduct more than 80% of UK funerals every year – can suggest reputable local firms, small and large, to implement requirements and relieve much of the administrative burden associated with a death. Useful Contacts: The Law Society of Scotland: www.lawscot.org.uk, NAFD and FPA: www.nafd.org.uk and www. funeralplanningauthority.com