Planning for Your Family’s Future
- Callum Dunbar
- Mar 3
- 3 min read
At Cleveden Park Wealth, we understand that preparing for the future is one of the most important financial steps you can take. Ensuring that your wealth is passed on according to your wishes can bring peace of mind and financial security to your loved ones.
Inheritance Tax (IHT), estate planning, and ensuring your assets are distributed efficiently require careful planning. In this edition of our newsletter, we’ll guide you through some key steps to help you take control of your financial legacy.
1. Start Planning Early
Estate planning is about more than just distributing your assets—it’s about securing your family’s financial future. A well-structured plan can help:
Ensure your wealth is passed to the right people.
Reduce or even eliminate inheritance tax (IHT).
Minimise legal and administrative hurdles for your loved ones.
Many people underestimate how complex estate planning can be. By starting early, you can avoid unnecessary stress and ensure that your financial affairs are in order well in advance.
2. Make a Will and Review It Regularly
Did you know that if you don’t have a will, your estate will be divided according to government rules—potentially in a way that doesn’t align with your wishes? This can lead to unintended consequences for your family.
If you already have a will, review it every five years.
Changes in family circumstances or tax laws may require updates.
Ensure your will aligns with your broader estate planning and financial goals.
It’s advisable to consult a solicitor when drafting your will, but also speak with your financial adviser to make sure it works effectively alongside your overall financial strategy.
3. Set Up a Power of Attorney
A Power of Attorney (POA) is just as important as a will. It ensures that someone you trust can manage your financial or medical affairs if you are unable to do so yourself.
A POA is for managing your affairs while you’re alive, unlike a will, which takes effect after your death.
You can specify when it comes into effect—either immediately or when you’re no longer able to manage your finances.
While a POA provides security, it does have restrictions, particularly around making gifts from your estate to reduce IHT.
If you’re considering setting up a POA, we recommend consulting a solicitor and your financial adviser to ensure your financial planning remains aligned.
4. Ensure Your Pension Beneficiary Forms Are Up to Date
Many people assume that their pension is covered by their will—but this isn’t the case. Instead, pensions require a nomination of beneficiary form, which dictates who inherits your pension.
Review and update your beneficiaries regularly.
Life changes, such as marriage or having children, may require adjustments.
Your financial adviser can help you check your current nominations and make changes if necessary.
Ensuring your pension is correctly assigned can prevent complications and ensure your loved ones receive their intended benefits.
5. Communicate Your Plans with Loved Ones
Even the best financial plans can create difficulties if your family isn’t aware of them.
Make sure your loved ones know where to find important documents.
Discuss your estate plan with key family members to ensure they understand your wishes.
This step can prevent confusion and stress during difficult times.
By being open about your plans, you help your family avoid unnecessary uncertainty in the future.
What’s Next?
Managing your estate and securing your family’s future requires careful thought and professional advice. While estate planning may seem complex, taking proactive steps now can ensure that your wealth is protected and passed on efficiently.
At Cleveden Park Wealth, we specialise in helping individuals and families create tailored financial plans that align with their long-term goals. Contact us today to discuss how we can help you secure your financial future for generations to come.
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