Insuring our houses, contents and cars is commonplace – what is often overlooked is personal insurance protection for ourselves and sometimes our loved ones too.
Most of us will have life insurance – especially if we own our own homes, however what would happen if you lost your job, or couldn’t work due to a serious illness? How would you cover the bills, especially the mortgage?
Insurance premiums may be escalating but we breathe a sigh of relief when they cover repairs, damage and potentially keep us afloat financially. For some of you, critical illness and income protection may be included in employee benefits, but if you’re self-employed – and the main bread-winner of the household – you owe it to yourself and your family to avoid any disasters before they happen.
But protection also involves ensuing your loved ones are taken care of should the worst happens. Do you have a will? If so is it up to date? Do you have a Lasting Power of Attorney in place so if you become incapacitated, your finances and health are protected?
– Theodore Roosevelt
If you die without a will, then you will have no say in how your estate is shared amongst those you love and leave behind. A valid, up-to-date Will sets out how you want your estate to be distributed, and must be updated in the event of a significant life event, ie a divorce, or additional dependents.
Dying without a Will is termed as dying “intestate” which means the Rules of Intestacy are invoked and are unlikely to reflect your wishes. Almost two thirds of Brits pass away without this protection, so although it’s not a particularly cheerful subject, it is a necessary one to avoid any further anguish for your family and those left to sort out your estate.
There are no rules for a Will to be drawn up by a lawyer, however the DIY versions can often lack the necessary structure and robustness required to ensure a Will cannot be contested, and meets a series of specific requirements.
– Warren Buffett
You may also wish to mitigate the severity of Inheritance Tax, when distributing your assets, so your beneficiaries are not left with a large bill to find, that could have been avoided, if you had made use of Trusts. There are several reasons for creating Trusts, usually to hold assets until children reach maturity, preserving your estate for your children and of course reducing tax liabilities.
Unlike a Will, you will need a Trust to be drawn up by a Solicitor who specialises in Estate Planning. They can be complex but when executed correctly can provide significant peace of mind to protect everything you have worked so hard for.
The thought of losing our mental capacity is not one we like to dwell on, however it could happen, and when it does, who would step in and make decisions on your behalf? Whilst this is commonly viewed as necessary in the event of dementia or similar conditions, you could fall victim to injury or illness that renders you incapacitated, even on a temporary basis. During this time life – ie bills, childcare etc – still need to be addressed.
There are two types of Lasting Power of Attorney (LPA) – Property and Financial Affairs and Health and Welfare. Appointing someone through the Office of the Public Guardian to ensure your financial affairs are taken care of, and ensuring your health needs ie medical treatment, moving into a care home etc are met is vital to avoid any long-term disasters.
The paperwork can be complicated so it is advisable to work with a suitably qualified solicitor or advisor who can take you through the entire process end to end.
At One Financial Solutions, we believe that planning for the future provides peace for the present. As a completely independent firm of financial planners, we are able to provide totally impartial advice and recommend the best products available to ensure the best safeguards are in place for you and your loved ones.
“Would highly recommend working with Ciaran. Fantastic knowledge of the markets, and I truly felt he had my best interests at heart.” – December 2023
At its core, One Financial Solutions believes in restoring humanity to the often impersonal landscape of financial management.
Recognising that each individual’s life, interests, and mindset are pivotal components in the financial journey, offering personalised guidance that transcends mere numbers and charts.
By fostering a deep understanding of our clients’ circumstances, One Financial Solutions empowers individuals to navigate their financial paths with confidence and clarity, ensuring that their aspirations and dreams remain at the forefront of every decision.
One Financial Solutions is an Appointed Representative of 2plan wealth management Ltd which is authorized and regulated by the Financial Conduct Authority. One Financial Solutions is entered on the FCA register (www.fca.org.uk) under reference number 607130. Registered office: Chapter House, 33 London Road, Reigate, Surrey RH2 9HZ. Registered in England and Wales, company registration number: 08141263.
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