There are a number of things that individuals need to consider when it comes to planning for their retirement, ranging from business succession and general asset planning, to setting up Wills and Lasting Powers of Attorney (LPAs).
If you have worked hard to build a successful business over the course of your lifetime, the chances are that you will want to pass on the business to a child or grandchild when you retire.
However, just as building up a business is no easy feat, passing on a business to the next generation isn’t without its challenges, either. In fact, it requires stringent planning and judgment, as well as the assistance of an expert who can help guide you through the process step-by-step.
Wills and Inheritance Tax planning
Wills are a vital part of planning ahead for the future. This is because having a legally-recognised, up-to-date Will is crucial for anyone who wishes their legacy to be passed on according to their wishes.
If you die without a Will, your assets will be passed on in line with Intestacy Rules – which could have unfavourable or unwanted consequences for the wider family, such as someone being disinherited. This can also lead to disputes.
When drafting a Will, it is equally important to think of the Inheritance Tax (IHT) implications of passing on your estate. In England and Wales, IHT is usually incurred at a rate of 40 per cent of an estate’s total value. This applies to any estates worth £325,000 or more – but there are many ways individuals can mitigate their IHT liability, such as by donating a portion of their estate to a charity.
Lasting Powers of Attorney
LPAs are becoming increasingly important in a world where more and more people are being diagnosed with life-changing illnesses such as dementia.
Setting up an LPA can enable you to appoint a trusted friend, relative or family member to make important financial or care decisions on your behalf in the event that you lose mental capacity later in life.
There are two types of LPA – a Property and Affairs LPA and a Personal Welfare LPA – both of which can be set up at any time by seeking specialist legal advice.
If you require advice or assistance with regards to any of the above issues, contact our expert team today.