How Estate Planning Can Change Lives

A study by the Institute of Fiscal Studies has reminded me why I think estate planning is so important. The study found that people who were born in the 60s and 70s will be poorer than their parents – unless they inherit from them. I often discuss with my clients the massive difference that their estate can make to their children’s lives, and for generations thereafter. We all know this of course, but have you ever considered the difference between inheriting £100,000 and inheriting £300,000?

Leaving things to chance is just not enough. In order to maximise the amount you can leave your children, there are some nasty possibilities that just cannot be ignored.

They are, in no particular order:

Remarriage or bankruptcy by your spouse or partner after your death

Inheritance tax

Mismanagement of assets after you have died

Long term care fees

All of these lead to the possibility of your estate being massively less than it would otherwise have been, thereby significantly reducing the amount your children or grandchildren might inherit. Importantly, all of these issues may be resolved or mitigated by the use of trusts, which may be set up during your lifetime or in your Wills.

If our children are to continue to enjoy the lives we have had, let’s make sure we give them as much help as possible. And it all starts by making or reviewing a Will….

Steve Wilkes is Managing Director and Head of Estate Planning at Silver Lining Estate Planning Ltd