As we progress through life and start to accumulate assets, such as our family home, we get used to a certain way of life, regular holidays abroad, nice cars and maybe even investing in our children’s education. We enjoy planning with our loved ones for all the positive things we would like to achieve. It is only human nature, however, that we don’t get around to planning for the negative things that might occur along the way because we never imagine ‘it will happen to us’. If the worst did happen though, do you have the necessary protection in place that will support your family to stay in the home you have built together and to maintain the lifestyle that you have worked so hard to achieve?

Taking out suitable insurance would mean that, in the event of the worst case scenario, your family would receive a lump sum or continuing income that would enable them to sustain the standard of living they have become accustomed to. In addition, this type of cover may provide the means to meet the inheritance tax and probate bills arising from your estate. Inheritance tax is currently at 40% on assets worth more than £325,000 which would include your home and all your worldly assets. Recent changes to probate fees also see these reaching as much as £20,000, meaning the bill for IHT and probate fees together would not be an inconsiderable amount to be settled before your loved ones could benefit from your estate.

You may already have taken out a life insurance policy, or feel this is covered by your employer’s ‘death in service’ cover, but is this going to be sufficient and has it been written into Trust? This is important as it allows for any benefits of the plan to be excluded from the final calculation of your total assets. It also means payments are made much quicker as this would then be handled separately to your will and without incurring the inevitable delays associated with probate.

We have helped many clients with their overall estate planning, so if you would like advice on this, or any other financial matter, contact us for an initial free of charge consultation meeting.