In today’s society, many of us are homeowners and have paid our mortgages for many years, worked hard and saved our money for many years in savings accounts and pension funds.
It is very difficult for us to consider the fact that these things we work so hard for may not be able to be passed on to our loved ones as we would assume, but could be swallowed up in external factors beyond our control such as:
- Probate costs – these costs are becoming increasingly more common and often families are having to pay thousands of pounds up front when dealing with the estate of their loved ones. Furthermore, the time it takes for probate to be completed is often between 9-12 months – delaying the passing on of assets to your loved ones.
- Inheritance Tax – your estate may be taxed when you die, then taxed again when your beneficiaries die and so on and so forth – the tax man will quickly obtain the lions share of your estate following this plan.
- The Local Authority – following the death of the 2nd spouse, your home may be sold to pay for the cost of your care- average costs are currently in the region of around £40,000.
- A new partner or spouse and their children – if you die and your spouse remarries or finds a new partner – your estate may pass to them and their children – bypassing any of your own children.
- Claims against your beneficiaries i.e creditors – if your children have any financial issues of their own and happen to inherit your estate, your assets may be immediately subject to pay off any creditors.
This list is not exhaustive and there are numerous issues that could arise, outside of our control, that could play a part in drastically reducing or even totally excluding the people we intended to benefit from our assets.
However, with careful planning, your assets can be protected from all the above events. Hexagon Life Planning Services offer a tailored approach to your estate planning that will consider all eventualities and provide you with a solution that enable you to protect your assets for the benefit of your loved ones.