Financial Protection (or ‘Foundations’) is the third step along the process. We show you the options available to you to protect yourself from catastrophes such as long term illness or disabilty, protect your family from death and your estate from unnecessary taxes and potential hostile creditors.
We organise the process in a graphical form which we call the House of Wealth and it provides you with the tools, information and abilty to make informed decisions on which (if any) options are right for you.
During your life time insurances take the main role, allowing you to transfer your risk from your estate, to the insurance provider. But we also think beyond today and ensure you leave your estate organised for your loved ones.
A Will and LPA are the basics within any Financial Plan. Ensuring you decide who receives what and when after you have passed away is your responsibility. You should not leave it up to your loved ones to decide who gets what.
Further if you have minor children then you should understand the consequences of your inactions. In the event of you passing away, your children will be passed to the surviving parent (assuming parental responsibility). But in the event of you both passing away, your children will be placed into the care of Social Services, and it will be for the court of Protection to decide who will be the most appropriate guardians for your children. Although Social Services will do the best they can, your children will have just lost both of their parents… they need to be in a familiar environment with people who they know and love.
Your Power of Attorney is a separate legal document, it will ensure that someone you trust can make decisions on your behalf if you lose mental capacity. There is a thought that LPAs are only for the elderly, this is wrong, an LPA is for anyone over 18 years of age, I feel they should be a must have for everyone. Anybody at any age could slip, fall and hit their head.