If they’re completely honest with themselves, nobody wants to consider the end of their lives or what might happen when they pass away.
However, when you look around you at the friends, family and loved ones you face leaving behind, the conversations about Wills and financial planning, however morbid they might be, become all the more important
Without a Will, your estate (that is everything you own and your financial assets such as your bank accounts) fall into “intestacy”. The Intestacy Rules mean that all of those assets will be disposed of according to the law.
In the most basic of terms this means that any debts and costs such as funeral expenses will be paid firstly and then what is left will be left to your closest relative. If you leave a husband or wife, they are the closest, then any children you have, any grandchildren, and after that your blood relatives starting with parents.
What this means however is that you have no say in the division of your assets, or more importantly, care arrangements within your family. Not to mention the inheritance tax payable at 40% over the personal allowance currently £325 000
Although the Intestacy Rules give a basic and very generalised approach to the division of assets when somebody passes away, they don’t take into account any specific circumstances, such as people who have co-habited for many years, close friendships or large community groups where relationships may be very close but are not “blood” relationships and would therefore not be recognised by the law.
A Will gives you the ability to circumnavigate these rules and lay down your own wishes, allowing you to protect your assets and ensure that those close to you receive the benefits you want them to from your estate. Writing a will to include trusts ensures that your hard earned assets are protected from the various threats to your wealth. This includes your beneficiaries getting divorced and your partner re-marrying after your death, thus ensuring that your assets remain in the bloodline for generations to come.
For many people, the biggest question they have surrounding their decease is what could potentially happen to their children. No parent wants to leave their children uncared for but without a Will and a proper arrangement for guardianship, your children could have their future living arrangements decided for them by the Court and in some cases social services care. Of course, they’ll be given a home and security but it may not necessarily be the home and security you would have chosen for them.
Nobody wants to consider situations like this but with recent statistics estimating that every year 23,600 people will die leaving a dependent child, you honestly can’t afford to not make arrangements for your children.
Aleka Gutzmore has a wealth of financial experience and believes passionately in future planning and the many benefits it can offer to families, “Many people are uniformed of certain rules and regulations and find themselves in difficult situations which could have been avoided had they or their loved ones implemented proper financial planning strategies”.
Visit here site |www.mylifechoices.co.uk and tweet here Twitter: @alekagutzmore