According to the ONS (Office of National Statistics), the population of the UK is ageing, and it is projected that by 2050, one in four people in the UK will be aged 65 years or over.
With this in mind, it’s wise to think about your plans for later life with the aim that you can then sit back, relax and enjoy your life without worry.
To that end, you might like to discuss the following with your loved ones and relevant experts.
Estate Planning and making a will
Your “estate” is everything you own, so estate planning means planning what you will do with everything you own once you pass away. This key part of your plan for later life is typically known as making a will. Your will is a legal document which means you can decide what exactly will happen to all your money, your house(s) and your possessions after your death.
Writing a will can also help you make sure you don’t pay more Inheritance Tax than you need to. It can set your mind at rest that your wishes will be honoured and can make your passing and the ensuing bureaucracy very much less stressful for your loved ones.
If you die without a will this is called dying “intestate”. If you die intestate, you cannot guarantee that you will be able to leave your estate to the person or people you wish to inherit it. If you are not married, your partner will not automatically inherit your estate if you die without a will.
Inheritance Tax is a tax on the property, money and possessions of someone who has died. Inheritance Tax rules change reasonably often, so we recommend you speak to an expert on this topic.
At the time of writing, the Inheritance Tax rate is 40%, charged on the part of your estate over the tax-free £325,000 threshold.
Power of Attorney
A lasting power of attorney (LPA) is a document that allows you to appoint a person or persons who can help you make decisions, or who can make decisions on your behalf. This gives you control over what happens to you if you have an illness, accident or mental health issues which mean you’re no longer able to do this at all, or alone. To make your LPA you must be over 18 and able to make your own decisions.
There are two types of LPA – property and financial affairs and health and welfare. You can choose to have one or both.
Long term care
Where you’d like to be looked after is a very personal decision, and there are pros and cons to every option. We know that our clients are delighted with their choice to receive care at home, and their families rest easy knowing their loved ones are in capable hands.
You work hard and want to know that you will be able to retire in comfort to enjoy time with your family and friends.
Financial plans can help you work out how you’re going to live once you retire, and the type of care you’ll be able to afford in later life.
These are important issues, so as your financial affairs and needs become more complex, it’s important to get advice, but only from someone who is authorised and regulated by the FCA (Financial Conduct Authority).
When it comes to making plans for later life, we recommend you think about this early, thoroughly and review it regularly. If you’d like to discuss long term care, that’s one of our true areas of expertise and we’d be delighted to offer advice and support without any obligation from you. Our goal is to help others have peace of mind. Speak to one of our friendly advisors by calling 01753 369088.