Protect your wealth

by Michael Fogg

As we approach the Festive Period and – more specifically – the New Year, a number of my clients are contacting me to review their financial position, and to put things in place for their future and that of their children.

Why now?

Reviewing your finances regularly is important. This is a given and is something that many of us do – to a greater or lesser extent – on a daily basis. If we are fortunate enough to have a roof over our heads, food and drink, and human interaction we are in a privileged position that many are not. However, daily or monthly household budgeting – being short to medium term financial planning - is not the same as making or updating your Will, or thinking about whether you could use Trusts to better structure your assets. This is medium to long term financial planning and can be highly beneficial to many people even with a fairly modest asset base.

Quite often, when assisting a client to restructure their finances, I’ll be told that it is “a weight off their shoulders”. Not because it was urgent to get done, but because when the work had been completed, the client has a very real sense of achievement. Of having done something meaningful for themselves and for their loved ones, whomever they may be. And, quite frequently, this is something that the client had been thinking about – either actively or subconsciously – for some time.

The new year tends to give added focus to this. Although some new year’s resolutions are physical or mental (losing weight, going to the gym more, meditating or taking up yoga) others are more financial in nature. With the fast moving nature of the housing market in Cardiff at present – and with inflation starting to rise and interest rates likely to go in only one direction in the coming years – a lot of my clients are now seeking to take advantage of house price growth, for example taking advantage of long fixed rate mortgage deals whilst they are still being offered, or investing in property improvements and the new developments throughout Cardiff but focussed in the north of the City.

When is the best time to review your financial position?

Although the trite answer is “at any point”, the more sensible time to conduct a full review of your financial position is when you have a little free time to ‘deep dive’ into the various options available to you. Although this is not the same for everyone, many people do tend to have a little more time free, often in the company of family and close friends, at this time of year and so it may be sensible to have a discussion about how to structure your assets (taking into account any debts you may have) in the privacy of your own home.

The sort of thing which tends to require a Will review, for example, would be any major life milestone – buying a home, moving in with a partner, marriage (either you or any of your potential beneficiaries), children (either born to the family or adopted in or out), divorce or legal separation.

Considering whether a Trust – or Trusts – could be beneficial is also worthwhile at this stage, as well as at the point that you have purchased or inherited investment assets (whether these are subject to a mortgage or not). Lasting Powers of Attorney are far more straightforward. This is because, regardless of what you have and who you want to leave it to, you still need to protect against decisions being made which you wouldn’t necessarily want to happen. Decisions relating to your care, your treatment if seriously ill, and who you would want to make decisions on your behalf. It’s a common misconception that the person named as ‘Next of Kin’ or ‘Emergency Contact’ has the legal authority to make decisions on your behalf. They may do – if you have given your legal authority for this through an LPA. But it’s not always the case and can sometimes result in long, costly and stressful applications for someone to be appointed as a legal Deputy by the Court of Protection.

How long does it take?

It can be difficult to provide very specific timescales for work to be completed, in particular when dealing with outside organisations like the Office of the Public Guardian (who supervise LPAs and with whom the LPAs need to be registered) or HM Revenue & Customs (where settling assets into Trust). However the work to get the process underway can take as little as an hour of your time, if you are familiar with your financial position.

Trusting Willpower offers free face-to-face consultations for those who wish to explore their options in the comfort of the client’s home. These consultations have no obligation – you don’t have to take a service – although it is true that many of our clients have come from some initial free advice and guidance. They are also available from early morning to late night rather than the more traditional office hours of 9am to 5pm or 8am to 6pm. I’ve regularly found myself, as an example, getting home at close to the witching hour with a sense of satisfaction at another job well done and another client correctly advised and assisted.

What information do I need to recommend the best course of action?

If you’re broadly on top of your personal finances, surprisingly little preparation work is needed to allow me or one of my consultants to recommend the most sensible and efficient course of action. A rough idea of the value of your assets and any debts which you may have, plus information about your immediate family and who you want to benefit from your assets other than you. Finally, an idea about who you trust to carry out your wishes as you would like. Everything else, as useful as it may appear to be, can often unnecessarily muddy the waters.

Contacting Me

If you would like any help or advice on anything mentioned above, we would be happy to answer any questions by phone or email, or to arrange a free no-obligation meeting at your home to review your situation. Alternatively, we are now holding regular seminars on wealth management with the next one scheduled to take place on 4 January 2021 at Cardiff Golf Club in Cyncoed.

Please get in touch on 029 2021 1693, by emailing TrustingWillpower@outlook.com, or by visiting our website: www.TrustingWillpower.co.uk