Thinking about wealth and assets, it’s natural to think in the short to medium term: what you have, your current ambitions, and ensuring you have enough set aside for a rainy day.
It is just as important to protect your wealth longer term so that it can be passed on after your death – in whatever way feels right to you. Practically speaking, that might be making sure your wife or husband is financially looked after, providing for your children or grandchildren, or leaving assets to a partner, friends, charities or other beneficiaries.
Deciding how to transfer wealth
It’s estimated that the ‘baby boomer’ generation is either already enjoying a well-earned retirement, or they are on the cusp of doing so. Much of the substantial wealth that they have built up during their lifetime is about to be passed on to Generation X or Y. The transfer of wealth is expected to peak somewhere around 2035, with £5–6 trillion being passed on.
Deciding how to transfer your wealth can be difficult. However, it is important to do so in order to protect and preserve it for future generations. The best way to start is by preparing a Will.
Preparing a Will means that your estate will be distributed in line with your wishes, rather than according to the rules of intestacy, which might be very different. A Will is also important to optimise your estate; you may be able to minimise the amount of Inheritance Tax payable by your estate, leaving more of your assets to your loved ones.
More people are creating a Will than ever before
Despite the importance of having a Will, until recently, 50% of Britain’s adult population didn’t have one. Time constraints and not understanding the Will writing process have been some of the reasons why people delayed getting the process started. Thankfully, that is slowly changing with more people realising the importance of planning for the passing of assets and wealth to future generations.
If you would like to know how best to ensure your wishes are followed and your possessions and funds are distributed as you want them to be, contact us to find out more.