Helping our clients plan in the later stages of their lives is one of our specialisations and requires a sensitive approach to deal with important and often difficult decisions.
Wills and Trusts
Few people understand the financial consequences of failing to make a will, which means that the Rules of Intestancy will apply when you die. This means that you have no say in what happens to your assets, or dependents, after your death.
If you die without leaving a valid will the government will decide who is entitled to inherit your estate and Social Services will decide who will become guardians of your children in accordance with the intestacy rules laid down in the Administration of Estates Act 1925, which establishes who is entitled to inherit from your estate. Only married couples, civil partners and blood relatives can inherit under the rules of intestacy. If you have no relatives the Crown is entitled to take everything.
Trusts can also be created by a will or independently. Trusts enable you to pass assets to others whilst retaining an element of control. This can generate significant tax savings, as well as preserve your assets in case of needing State-funded care.
We can assist you to arrange a will or trust with our excellent contacts in the legal profession, so that you can be sure that your loved ones will be the prime beneficiaries of your estate.
Long Term Care Planning
Putting a Care Plan into place involves discussions with medical experts, Social Services, and private care firms. It often requires you to provide full details of your income and assets. Knowing which of those assets must be considered and which are disregarded in the financial assessment can make a big difference to in the standard of care you receive and how much you are expected to contribute.
We also assist Attorneys with arranging the finances to fund a relative’s care home fees and can recommend a range of lower-risk income-producing investments. The average annual care home now costs in excess of £24,000 per annum, and if nursing care is required this often exceeds £30,000 each year.
Why should I plan?
Paying for an annuity or care insurance plan could allow you to remain independent in your own home through the provision of specialised equipment and care services that enable you to live independently for longer.
It is also a way of ensuring that you spend less of your money in providing the care you need so that your family can inherit more. Local Authority care is a tax on people who need care, but unlike the Taxman, Social Services will take nearly all of your money and assets.
There is no doubt that the need for care is likely to increase as life expectancy continues to rise and with only limited care facilities available, the costs are likely to rise.
Equity Release – unlocking money from your home
With the rapid increase in house prices over the last 10 years and the reduction in state support for pensions, together with volatile investment performance, many retired people are finding themselves in an “equity-rich cash-poor” situation where most of their wealth is tied up in the property they live in.
All the schemes we recommend are covered by the SHIP (Safe Home Income Plans) code of practice. Equity Release is now a fully FSA-regulated activity, which provides greater consumer protection by setting legally enforceable standards to reinforce the previous voluntary code of conduct. This means that you are now protected by the Financial Adviser's legal responsibilities as well as your solicitor's, and in the unlikely event that things should go wrong you have the protection of the Financial Ombudsman Service.
