Whilst writing a will provides some reassurance that your assets will be handled accordingly following your death, estate planning ensures an extra layer of control. Lakeside Practice Principal, Matthew Hibbert, outlines its value.

What does estate planning entail?

M: Through estate planning, you can put clear guidance in place on how you would like your estate to be managed upon your death and by whom. Going one step further than a will, this level of planning looks specifically at who will own, control and benefit from your assets when you are no longer here. It often entails setting up trusts that avoid the need for probate and can sometimes reduce the amount of tax paid by your estate.

More complex family circumstances where people have children from previous relationships can often make decisions quite complicated. Estate planning can simplify the process by giving transitional benefit to different people.

Why is this level of planning important?

M: It can help to keep your assets within your bloodline and protect them from being lost due to things such as long-term care, divorce, bankruptcy or inheritance tax. It also ensures your wishes for your estate are watertight. So, for example, you could set out that you wanted funds to be drip-fed to particular beneficiaries or that they could only access the money at a certain age or for specific requirements/purchases, such as educational and care needs or a house.

What are the most common misconceptions of estate planning?

M: Many people think that estate planning is expensive, but the value of its benefits will often easily outweigh the initial cost. A regular will generally costs £100 to £200, and estate planning is around £400 to £800, so to protect an estate worth tens or hundreds of thousands and ensure your wishes are met, it’s not a huge amount to pay.

At what point would you advise clients to look into estate planning, and how can Lakeside assist?

M: It makes sense to take care of estate planning while writing your will. If you already have a will in place and haven’t included estate planning, this is something that we can easily take care of. Meanwhile, if you are a homeowner, have children or both, estate planning should be a serious consideration. As independent financial advisers, we can help clients look at the bigger picture beyond “who gets what” when they are no longer here.

When estate planning, we do a thorough review of a client’s finances and suggest options to suit their circumstances and wishes. Ultimately, this will give them control over who can access their assets, how and when whilst protecting their estate against inheritance tax and potential losses posed by other threats.

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Please feel free to contact us for further information: admin@lakesidefs.co.uk

First published on March 11th, 2021

The information provided above is believed to be correct at the time of publication and is provided for information purposes only, it does not constitute advice. Any reference to interest rates or growth rates are examples only and are for illustrative purposes only. You should seek independent financial advice before making any decisions about your finances and financial products. We accept no liability for loss as a result of any action taken based on the information on this page where appropriate independent financial advice is not taken from Lakeside FS Ltd.