New Year's Resolutions - 10 Things to Think About for Your Estate Planning
The New Year is a time for fresh starts, setting goals, and taking steps to secure the future you envision. While many of us focus on fitness, finances, or career aspirations, 2025 is the perfect year to prioritise something equally important: estate planning. A well-drafted Will ensures your loved ones are protected and your wishes are honoured.
Here are 10 things to think about for your estate planning resolutions:
1. Make My Will
If you don’t have a Will, now is the time to act. A Will is the cornerstone of estate planning, allowing you to:
• Decide who inherits your assets.
• Appoint guardians for minor children.
• Reduce the risk of family disputes.
• Protect your partner if you’re not married.
Without a Will, your estate will be distributed according to intestacy laws, which may not align with your wishes. Don’t leave it to chance—resolve to make your Will in 2025.
2. Review My Will
Already have a Will? Great! But when was the last time you reviewed it? Life changes, and your Will should reflect those changes. Key times to review your Will include:
• Marriage or separation.
• The birth of a child or grandchild.
• Changes in financial circumstances.
• The purchase or sale of property.
Set a reminder to review your Will every 3-5 years or after major life events to ensure it’s always up to date.
3. Consider a Protective Property Trust
A Protective Property Trust can safeguard your property for future generations, ensuring it isn’t lost to care home fees or other unexpected costs. This type of trust is particularly valuable for couples who want to protect their share of the family home while allowing the surviving partner to live there for life.
4. Set Up a Lasting Power of Attorney (LPA)
An LPA allows someone you trust to make decisions on your behalf if you lose capacity. There are two types:
• Property and Financial Affairs LPA: For managing your money and property.
• Health and Welfare LPA: For decisions about your health and care.
Both LPAs are crucial for protecting your interests and giving you peace of mind.
5. Plan for Inheritance Tax (IHT)
Inheritance Tax planning can help reduce the tax burden on your estate. By using allowances like the Nil Rate Band (NRB) and Residence Nil Rate Band (RNRB), you can maximise the amount passed on to your loved ones. Consider gifting during your lifetime or setting up trusts to manage your estate efficiently.
6. Think About Digital Assets
In today’s digital age, your estate planning should include your digital assets. These might include:
• Online bank accounts and financial platforms.
• Social media accounts.
• Digital photos, videos, and documents.
• Cryptocurrency wallets.
Ensure these assets are accounted for in your Will, and consider leaving clear instructions for accessing and managing them.
7. Discuss My Wishes with Loved Ones
Having open conversations about your estate planning wishes can avoid misunderstandings and ensure your family is aware of your intentions. It’s also an opportunity to discuss practical matters like funeral preferences and executor responsibilities.
8. Review Beneficiaries on Financial Accounts
Check your pensions, life insurance policies, and other accounts to ensure the named beneficiaries align with your current wishes. Updating these details is quick and can prevent complications later.
9. Protect Vulnerable Beneficiaries
If any of your loved ones are vulnerable due to age, disability, or other circumstances, consider setting up a trust to ensure their inheritance is managed appropriately and safeguarded for their future needs.
10. Seek Professional Advice
Estate planning can be complex, and mistakes can have costly consequences. Working with a professional ensures your Will is legally sound and tailored to your unique circumstances. At Pardoes Solicitors, our experienced Private Client Team can guide you through every step of the process with care and professionalism.
Start 2025 with Peace of Mind
Making or updating your Will doesn’t have to be daunting. Take the first step towards securing your family’s future and make 2025 the year you prioritise your estate planning. Whether you need to make a new Will or review your existing one, we’re here to help.
Call us today on 01278 457 891
Visit our website: www.pardoes.co.uk
Let Pardoes Solicitors help you protect what matters most.
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