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Building and protecting your wealth

Protection Spotlight Series – Preserving Your Wealth With Estate Planning and Wills

If you have family or loved ones who depend on you financially, the sensible and responsible thing to do is to have a solid estate plan that preserves and protects your hard-earned wealth and ensures that your wishes are honoured posthumously.


This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice. 


Our Protection Spotlight series will take you through the four key elements of a robust wealth protection plan: Life Insurance, Critical Illness Cover, Income Protection, and Estate Planning.


If you haven’t considered what will happen to all of your assets or how your family will be taken care of after you’re gone, now is the time to do so.

Estate planning and creating a will is the best choice you can make. Discussing and planning the transfer of wealth might not exactly be a cheerful topic, but the peace of mind is worth the discomfort.

It can be easy to make mistakes when estate planning, so it’s always advisable to work with an independent financial adviser.


Estate planning overview

Planning your estate allows you to explicitly state who you want to leave your belongings to and the manner in which these people can receive it once you pass.

Decide if you want your assets to go to:

  • your family and friends,
  • charity or…
  • the government in the form of taxes.

If you plan to leave money or valuable assets to your underage children, you may wait to grant them access until they reach a specific age.


If you don’t specify who you want your estate to be left to in a will, your estate will be ‘intestacy’ and the assets will be shared out according to the law, which is not necessarily who you want to receive it.


Writing a will

A will puts you in control of who will benefit from your estate and what they are entitled to.

At the same time that you decide which assets you give to your loved ones, you should also choose an executor. who will administer your affairs after your death. If you don’t, the law will follow the predetermined hierarchy of who is able to handle your financial affairs. An executor will also be chosen for you if your initial pick is disqualified due to age, health, geographical location, or for any other reason.


Assign a Lasting Power of Attorney (LPA)

You can have a Power of Attorney for two things: Property and Financial Affairs and Health and Welfare. An LPA is tasked with carrying out your wishes.


You don’t have to wait to draw up a will to assign an LPA, you can do it at any time, but as people usually get all of their affairs in order at once, this is the best time to pick someone.


It’s important to make these choices while you’re still around so whoever you choose to represent you after you die knows exactly what you want to happen.


Plan for Inheritance Tax

One of the aims of estate preservation planning is to save your family from a potentially massive Inheritance Tax (IHT) bill.

IHT is paid upon death and calculated against the value of your remaining assets over the amount of £325,000 – including property, possessions, and savings. There are ways to effectively reduce your IHT liability such as spousal transfer of nil band and or successfully using your own allowance, but it’s important to have a plan.


Trusts

Trusts are extremely useful wealth management and tax planning tools. They allow you to give away assets while retaining a degree of control over them. The different types of trust allow for a considerable degree of flexibility in your planning.

With the strategic use of trusts, you can ensure that your loved ones will benefit entirely from the inheritance you want them to receive. As a bonus, they also protect your assets from the costs of long-term care. Don’t forget to include them in your plan.


Figuring out what exactly you’ll need to get covered might seem overwhelming, but not if you have help.

Our advice is built around your personal and professional needs and circumstances. An adviser will create a bespoke plan for you but will likely include:

  • Income Protection: A monthly, tax-free sum paid out to you if you’re unable to work due to illness or injury.
  • Life Insurance: A lump cash sum, usually tax-free, paid out on the death of the policyholder.
  • Critical Illness: A tax-free sum, paid out if serious illness or injury prevents you from being able to work.
  • Estate Plan: Craft a will, set up trusts, assign power of attorney, choose executors and trustees all to ensure your family is taken care of once you pass.

Protecting your wealth in case the worst happens should be a top priority. Ensure you have a comprehensive plan – not just an estate plan, but also any additional insurance policies that could help provide peace of mind for a hard-working dental or medical professional.


Do you need help with estate planning?
Investments | Financial Planning | Retirement | Save Tax | Protection |

Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.
Call Darren to discuss your options.

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