Hi, I'm Lee Platt, Director, Wealth Planner, with Barclays Wealth and Investment Management.
Today, we're talking: estate planning.
Estate planning is an important consideration for everyone.
It’s about structuring your estate and planning ahead in line with your wishes, so there are no uncertainties about how your assets are managed in the future.
Estate planning can also help minimise the effect of tax; and ensure that your desired beneficiaries are looked after, especially young children or any dependants who may be vulnerable and need special care.
Most people have an idea of what they would like to happen to their wealth and that their wishes are taken into account and acted upon.
However, this may not always be the case.
There are actions which you would need to take to ensure that your wishes are documented and acted upon in the event of death, or to take into account any specific wishes that you may have for passing on wealth whilst you are still alive.
These could be facilitated by putting in place a Will and could also require the use of gifts, Trusts and other vehicles, depending on your wishes.
If you were to become incapacitated during lifetime, then ensuring that your affairs can be managed on your behalf is also important.
Estate planning can also help to reduce the impact of tax on the estate and for beneficiaries.
The distribution of your estate may not be in line with your wishes and dying Intestate (without a valid Will) would follow a set path of succession, which may not reflect what you would actually want to happen.
You may not be aware of the impact of taxation on your estate and the mechanics of how and when tax needs to be paid.
It might be that you become unable to manage your own affairs, which can cause significant stress and difficulties.
Most people don’t realise how much tax may be payable upon their death and so often fail to plan adequately for it.
Working with a Wealth Planner to establish legacy plans (who will benefit, when, and how) brings peace of mind, and increases your legacy.
The Money Advice Service (MAS) has great information on their site.
Citizens Advice Bureau is also a fantastic resource.
And If you’re a Barclays Wealth client, speak with your Wealth Manger.
It is important to note though that Barclays does not offer tax advice.
Look out for the second part of estate planning where we will take a more in-depth look at the options and types of planning to consider.