Estate planning in Sutton Coldfield is a crucial component of your overall financial strategy that cannot be ignored. It not only guarantees that your assets are distributed according to your wishes, while also addressing aspects such as Inheritance Tax (IHT), but it also provides you with a sense of assurance about your future.

You have recently learned about the significance of estate planning, how to determine who should inherit your assets, and when it is necessary to establish a plan to deal with IHT. Now, keep reading to discover what measures you can take to enhance your financial security in your later years with proper estate planning specialists in Sutton Coldfield. Although addressing these three areas may be challenging, they are critical for ensuring the protection of your future.

1. Create a care plan

Creating a care plan is an essential step towards ensuring a comfortable and well-supported later life. It can take various forms depending on the individual’s needs, with nearly 500,000 people estimated to be residing in care homes across the UK, while others may receive home-based care services.

Developing a care plan enables you to articulate your preferences clearly, such as whether you would like to stay in your home, and which care home would suit you best based on the facilities and accessibility for your loved ones.

As you may be responsible for funding at least a portion of your care expenses, outlining how you intend to pay for it is a vital aspect of creating a care plan. Carehome research indicates that living in a residential care home can cost an average of £760 per week, while nursing home costs can average around £960 per week. These costs can vary considerably depending on the care home, so it’s essential to take the time to research and understand potential expenses in your area.

By estimating the possible cost of care, you can set aside some of your assets to finance it. Even if you don’t end up using your care fund, the knowledge that it’s available can provide a sense of security and peace of mind. Don’t wait until the last minute to create your care plan; it’s crucial to start planning early for estate planning in Sutton Coldfield.

2. Name a Lasting Power of Attorney

Naming a Lasting Power of Attorney (LPA) is an essential component of planning for your future, particularly in the event that you become unable to make critical decisions due to illness or an accident. There are two types of LPAs: one for healthcare and care decisions and another for financial and property matters.

Even if you are married or in a civil partnership, your partner does not automatically have the right to make decisions for you. In the absence of an LPA, they could be locked out of joint accounts and unable to make important decisions on your behalf.

Without an LPA in place, your loved ones may not be able to manage your affairs if you become incapacitated. They would need to apply to the courts to designate someone to act on your behalf, which can be a costly, time-consuming and stressful process. There is also no guarantee that the individual selected by the court would be your preferred choice.

Despite its significance, research indicates that many individuals overlook the importance of an LPA. According to Scottish Widows, only 37% of Brits have a Lasting Power of Attorney in place. It is crucial to consult with an estate planning expert to establish an LPA and ensure that your future needs and wishes are safeguarded.

3. Make funeral arrangements

Thinking about passing away can be difficult, but it could ensure your wishes are carried out. It can also give your loved ones welcome guidance at a time when they’re grieving. The cost of a funeral may also be something you consider. According to MoneyHelper, the average cost of a burial is £4,383 while the average cremation costs £3,290.

There are various ways to make funeral arrangements, such as setting out your preferences in your will, although this would not be legally binding. However, it can still be useful for your family to have a clear understanding of your wishes.

Another option is to arrange and pay for your funeral in advance, allowing you to have full control over the arrangements and relieving your family of the burden of covering the costs. Consult with an estate planning expert to discuss your funeral arrangements and ensure that your wishes are carried out.

Contact us to create an estate plan you can have confidence in

An estate plan should give you confidence about your future and what will happen when you pass away. We can work with you to create a plan that reflects your wishes and circumstances. Please contact us to arrange a meeting.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate estate or tax planning.

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