When people hear the words “estate planning”, they often imagine wealthy families, complicated investments and large amounts of money.
But estate planning isn’t just about wealth.
For most people, it is simply about making sure that the people and things that matter to you are looked after in the way you would want – both during your lifetime and after your death.
Whether you own a home, have children, have savings, run a business or simply want to make things easier for your family, some straightforward planning can make a significant difference.
Here are 5 reasons why estate planning could be relevant to you:
1. It’s about more than what happens after you die
A Will is an important part of estate planning, but it isn’t the whole picture.
What would happen if you became unable to make decisions for yourself because of an accident, illness or loss of mental capacity?
A Lasting Power of Attorney (LPA) allows you to appoint people you trust to make decisions on your behalf if you are unable to do so yourself. There are two types covering property and financial affairs and health and welfare.
Without appropriate planning, your family may face a more complicated process when they are already dealing with a difficult situation.
Estate planning is therefore not simply about deciding who receives your assets. It can also be about deciding who you trust to help you if you can’t make decisions yourself.
2. Your family circumstances can change
Life rarely stays the same.
You might get married, separate, have children or grandchildren, buy a property, receive an inheritance or experience a significant change in your financial circumstances.
A Will that was appropriate several years ago may no longer reflect what you want today.
For example, you may have originally made your Will before having children, or your family structure may have changed since it was written.
Regularly reviewing your estate planning means you have an opportunity to check that your wishes still reflect your circumstances.
3. Your home may be one of your biggest assets
For many families, their home represents a significant proportion of their wealth.
How that property is owned, who ultimately receives it and what happens to it when one owner dies can all be important considerations when planning your estate.
The way a property is owned – for example, as joint tenants or tenants in common – can have implications for what happens to your share of the property.
This is one reason why estate planning shouldn’t be viewed as simply “writing a Will and forgetting about it”.
Your assets, how they are owned and your wider family circumstances all need to be considered together.
4. Inheritance Tax may be relevant even if you don’t consider yourself wealthy
Inheritance Tax is not necessarily something that only affects the very wealthy.
The current standard Inheritance Tax nil-rate band is £325,000, while a residence nil-rate band of up to £175,000 may also be available where the relevant conditions are met. The rules can be complex, and the allowances are subject to specific conditions.
The value of a family home, savings, investments and other assets can therefore mean that Inheritance Tax needs to be considered as part of wider estate planning.
That doesn’t automatically mean that tax will be payable – but understanding your position can help you make informed decisions about how your estate should be structured.
5. Good planning can make things easier for the people you leave behind
Perhaps the most important reason for estate planning has nothing to do with tax or wealth.
It is about your family.
When someone dies, their loved ones may already be dealing with grief. Having clear arrangements in place can make the practical and financial side of things easier to deal with.
A properly prepared Will can set out who you want to benefit and who you want to deal with your estate.
Depending on your circumstances, trusts and other forms of planning may also be appropriate.
The aim isn’t necessarily to create a complicated plan.
It is to create the right plan for you and your family.
Estate planning is about people, not just pounds
You don’t need to be a millionaire to benefit from estate planning.
If you have a home, a family, savings, a business, children or simply people you care about, it is worth thinking about what would happen if you were no longer able to make decisions yourself – or when you are no longer here to make them.
The right planning can help give you greater control over your wishes and greater clarity for those around you.
The question isn’t “Am I wealthy enough to need estate planning?”
It is:
“Have I made the right arrangements for the people and things that matter to me?”
At ProTrust Consulting, we help individuals and families plan for the future with clarity and confidence. Our estate planning services include Wills, Trusts and Lasting Powers of Attorney, with professional guidance tailored to your circumstances.
If you have any questions or would like advice tailored to your circumstances, please don’t hesitate to get in touch. We’re always happy to help.
Robert Cartmell
Founder & Senior Consultant
