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Estate planning 101: all the key things you need to do manage your assets

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Published
05/18/2023

For most of us, estate planning isn’t something we consider until very late in life. Indeed, 2023 research from The National Will Register found that 42% of UK adults haven’t spoken to anyone about what they want to happen to their assets, savings, and belongings once they pass away. Planning your estate is incredibly important though. In this guide, learn why, plus the important things you should do to organise your assets and ensure they go where you’d like when you’re gone.

Why plan your estate?

There are lots of reasons why estate planning matters.

First, without clear guidelines in place, your assets could be taxed heavily – more than they would have if you had properly organised them. Next they could be given to parties other than your beneficiaries, close family members, or children. Indeed, if your estate is worth below £270,000 and you are survived by a partner, your children would not receive any money automatically.

What’s more, without a plan in place, acrimonious and expensive arguments could break out amongst your family – hardly the legacy you want to leave.

How to plan your estate

Making sure your money and assets go where you want them is relatively simple and will give you peace of mind going forwards.

1.  Work out the value
Before you begin taking steps to protect your assets its crucial you know the exact worth of your estate so that you can make sure each item is properly covered in your will.

To do this, go through your entire estate and tot up how much it’s worth, using online valuation tools for assets like homes. Make sure to check things like pensions, bank accounts, savings, stocks and shares, life insurance, and debts others owe you. Then tot up your liabilities – mortgage, loans, credit cards etc. Subtract the latter from the former and you’ll know exactly how much your estate is worth.

Using an asset finance facility to release equity from your high-value assets such as sports cars, jewellery, or even art and fine wine, can give you additional flexibility with your wealth when planning your estate.

2.  Create a will and LPA
Nobody likes to think about leaving their family, but it’s important to have all the necessary paperwork filled out well in advance. That way, if the worst happens or you become unable to care for yourself, everything can be sorted out smoothly.

Consider using an estate lawyer who can take you through the will-making process and draw up a will properly that will hold up to legal scrutiny in the event of disagreements after you pass on. It’s also important to register a lasting power of attorney (LPA). This nominates individuals who can make decisions on your health and welfare, and/or property and financial affairs, if you are mentally incapacitated.

3.  Organise your documents and assets
Finally, make sure to keep all paperwork to do with your assets organised and easily accessible. This will make protecting them far easier and will mean you’re able to update and change things in accordance with how they happen. It’ll also make your family’s job easier once you pass away.

 

With the tips above, your assets should be properly protected and planned in the event you pass away. What do you think is the most important thing to bear in mind when estate planning? Let us know your thoughts in the comments section below.

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