Eight Essential Points for Later Life Planning
Did you know that later life planning is much easier than you possibly thought it was?
At gpfm we have a wealth of knowledge when it comes to all aspects of personal finance management. Because of this, we look at eight points to think about during the process of life planning.
- The importance of an up-to-date will
Making a will is the start of preparing for the future, especially if you have children (under the age of 18). If you do, then now is an ideal time to talk with your family and friends about your wishes. Did you know that 59% of UK adults have not written a will?
- Lasting powers of attorney (LPAs)
LPAs are an essential part of later life planning as they ensure your wishes will be carried out should you lose physical or mental capability. They make sure that you have pre-decided the person who will be charged with decision-making regarding your finances and welfare, should you become unable to make them yourself.
- Discuss later life care
Social care is a worry for many, especially with it hitting the national headlines daily. Many people are worried about funding care they may need in the future, and what sort of care they would receive. Because of this, it’s wise to talk openly with your family and plan for each potential eventuality.
- Digital assets
As the law slowly wakes up to the importance of digital, you need to help your attorneys or executors by compiling a list of all your digital assets, such as social media accounts and email addresses. Think about any automatic payments and the amounts charged to debit and credit cards and give details on how to access these accounts, too.
- Talk to Beneficiaries and executors
Family members should know the basics of your estate and your financial plans. Different life stages – from births and marriages to deaths – will often encourage you to review your financial situation, so you should take this as a prime opportunity to discuss your will, inheritance, and all of your financial matters openly and honestly with the people that matter.
- Review ownership and devolution of assets
Some of your assets won’t be affected, even if you have a will in place. Although it’s true that joint assets remove the necessity for probate, they can also distribute assets to the co-owner, who might not be the intended beneficiary. Diligent planning can ensure assets go to your designated beneficiaries, whilst also enabling specific individuals to have the right to use them if needed.
- Efficient tax planning
You may be unaware that during your lifetime you can legally gift finance via your will. This is a great way to decrease the sum of tax liability on death. Pensions too can also be a tax-efficient way of planning, so long as they are appropriately structured. With this sort of situation, sound financial planning advice is essential.
- Discuss heirlooms and personal possessions
If you’re finding speaking to family members about later life financial planning difficult, discussing heirlooms can be an easier way to broach the subject. Many people cherish hearing about relatives, family objects of emotional importance, and ancestry, so it could help your family to know what they will inherit from previous generations.
Later life planning can baffle many people, but once you make the first initial steps you’ll soon find yourself getting under the skin of your personal finance. With an active approach to your later life planning, you will obtain that all important goal – peace of mind.
As expert financial planners, gpfm are best placed to give you the essential knowledge tools to take charge of both you and your family’s monetary assets. Contact our Chartered Financial Planners on 01992 500261 or on firstname.lastname@example.org.
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.