Wills, inheritance tax and power of attorney: don't leave it to chance

Some of the most important financial planning has nothing to do with growing your money, and everything to do with protecting the people you love. Wills, inheritance tax and Lasting Powers of Attorney all come under that heading, and they are far too easy to put off.

It is so important to plan for the future. Here are the key things worth knowing.

Inheritance tax

Inheritance tax currently affects only a small share of estates, but the rules catch people out. One trap in particular: if you are not married or in a civil partnership, you cannot transfer your unused inheritance tax allowances to your partner. That can make a real difference to what your loved ones are left with.

You need a Lasting Power of Attorney

A Lasting Power of Attorney (LPA) appoints someone to help with your finances, and separately with your health decisions, if you are ever unable to make those decisions yourself.

This is not just for the elderly. Everyone should have Lasting Powers of Attorney in place, young or old, because none of us know what is around the corner.

If you have assets, you should have a Will

A few simple rules of thumb:

• if you have assets, you should have a Will
• if you live with a partner but are not married, you should have a Will
• if you have children under 18, you can appoint guardians for them in your Will
• if you made a Will but have since married, your Will is likely to have been revoked

It is also worth making a list of your assets, including digital ones such as photos stored in the cloud, social media, email and online shopping accounts.

Don't leave things to chance

These are decisions that bring real peace of mind once they are made. If you would like to talk any of this through, please feel free to call me on 07778 397891 or send a message through the contact page.

Will writing, inheritance tax planning and Lasting Powers of Attorney are not regulated by the Financial Conduct Authority. Tax treatment depends on your individual circumstances and may change in the future.