The last few years of economic uncertainty and unprecedented events may have got you thinking about your future. You may be considering how you can protect your finances to support you and your loved ones, being able to plan for the future you want, and for those that are important to you.
We understand the pressures and needs of our clients, so have compiled our top five tips for protecting your assets.
1. Assess Your Current Financial Position
One thing that’s become clearer in the past years, is that we can’t predict what obstacles may be waiting around the corner. Although you may be looking at asset protection further down the line, it’s never too early to start making a formal plan for your finances.
A good place to start is looking at your current financial situation. Do you currently have a plan that can support you right now in the event of an emergency? What can you do to improve your current financial position? Do you have any dependants that need to be factored into a plan? These are all questions you can start to ask yourself when starting to plan.
2. Set Financial And Aspirational Goals For The Future
Most of us have aspirations for later life. Whether you’re looking to retire early, or setting up funds for loved ones, making sure you’ve got enough to get there, and having the right plan in place, can protect you from unforeseen circumstances.
Understanding where you want to be in later life can help you judge whether what you have now is working well for you, and how it could be improved. Once you’ve created a loose plan for your own finances, you can start to implement it, making sure you’re protected for the rest of your life.
Only once you’ve arranged your own plan and making sure you are looked after for the rest of your life is it worth looking towards the next generation.
3. Seek Professional Advice
Once you’ve got a good idea for your goals and your financial situation, it’s worthwhile seeking professional advice. There are so many external factors that can affect your situation, not only from a financial perspective, but also from a legal standpoint.
You may want to consider the following options when looking at works best for you and your situation:
- Bespoke planning – everybody’s experience is different, and no plan will be the exact same as yours
- Wills – whether it needs to be created, or updated, do you have the right beneficiaries set up?
- Lasting Power of Attorney – setting this up means your chosen attorneys can make important decisions for you if you can’t make them yourself
- Trusts – a legal arrangement for managing wealth. Different types of trust can cover money, investments, land or property – for you, your family, or anyone else who you’d like to benefit
- Cohabitation agreements – protects wealth outside of marriage if property ownership is unequal and deals with financial matters in the event of separation
- Pre and post-nuptial agreements – having such agreements protects wealth by agreeing financial arrangements if the relationship were to end. For example, a post-nuptial agreement can be implemented if one partner wishes to protect an inheritance or lump sum after they are married
- Financial planning advice – whether it’s taxes or investments, the financial landscape is constantly changing.
4. Discuss Your Plans With Loved Ones
Talking is key. Keep your family updated on your financial plans to manage expectations. Clear communication can help your children understand any decisions that may impact them now and, in the future, avoiding disputes in the years to come.
It can also help with their own plans and open other options they hadn’t considered before. Knowing they have extra capital may influence decisions they make about their career, where they live, and life choices for their own children.
5. Review And Update Regularly
Life changing events that affect your future plans can happen. Whether you’ve welcomed new family members, or even facing a breakdown of your marriage, it’s important to regularly review your plan and update it accordingly.
We also understand that your goals and objectives can change over time, and what might have worked previously needs to be reconsidered. Incorporating flexibility into your plan can help tackle these changes head on, meaning your plan continues to be relevant years down the line.
Our friendly and approachable team can offer support and clear guidance, advising you on what action to take to ensure your wishes are followed and your best interests are looked after. We're one of the UK’s leading law firms, and our specialist teams located across multiple offices has extensive experience with asset protection.
Contact Us Today
Contact us today for help and advice on writing a Will. You can call us on 0808 291 2252 or contact us online.
Supporting You And Your Family
Future planning is one of the biggest investments you can make – not only for yourself, but for your loved ones as well. Please visit Supporting You and Your Family for more ways you can plan for the future.