Estate planning is something that should be done regardless of your age. However, with 2023 getting underway, it’s important to start thinking about what you need to do during the coming year to prepare for the future. In this blog post, we will discuss some of the things that you need to think about when it comes to estate planning. We will also provide some tips on how to get started!
First, we cannot stress how essential it is to have a Will in place. This helps ensure that your assets are distributed according to your wishes after you pass away. This should be your number one priority if you haven’t got a Will in place already. With over half the population in the UK without a Will, it is something that is often neglected until it is too late. Having a Will allows you to choose who inherits your estate, but also to appoint guardians for your minor children, as well as to place your funeral wishes.
When it comes to estate planning, one of the most important things to consider is trusts. Trusts can be incredibly useful in several different situations, and it’s important to understand how they work and what they can do for you. Trusts are essentially legal documents that allow you to transfer assets from one person to another, but in different ways. They also enable you to safeguard or ringfence assets. There are many different types of trusts and each has its own purpose. Some have different benefits and tax treatments so professional advice is always recommended. Some of the common types of trust include:
- Protective Property Trust (PPT)
- Vulnerable Person Trust (VPT)
- Asset Protection Trust (APT)
- Charitable Trust
Finally, don’t forget about having a Lasting Power of Attorney (often called LPA) in place. This allows you to designate someone who would look after your affairs in the event that you can no longer make decisions for yourself. There are two types of LPAs that are available. A Property and Financial Affairs LPA will allow your attorney to make decisions regarding your property and financial affairs, such as accessing your bank account, paying bills or selling your property. The other LPA is Health and Welfare which allows someone to make decisions for you regarding your care, including accepting or refusing life-sustaining treatment. These are vital if you are unable to make or communicate the decisions for yourself or if you need a little support but can only be made whilst you still have the required capacity to create the documents so therefore, can’t be put off.
Estate planning is a complex process but it doesn’t have to be overwhelming. If you take the time to do some research and plan ahead, you can ensure that your wishes are honoured and your assets are taken care of. 2023 is the perfect time to get started on estate planning – so don’t wait any longer! Make sure you use this year to get all of your ducks in a row so that you and your family can have peace of mind for years to come.
