One thing you need to do before you go on holiday
There’s something about getting on a plane, boat or bus and setting off on holiday that makes some people a bit jittery about their future. Have they got all of their affairs in order before jetting off on their travels? Is their Will up-to-date?
I was reminded of this by a client recently who told me that in the days leading up to a trip, her anxiety levels rise and she starts writing notes to her family informing them which solicitor has a copy of her latest Will, and where the various keys and codes are hidden, just in case something happens to her when she’s abroad.
This might seem over the top, but I’d advocate that it’s a very sensible approach to relieving any anxiety - you don’t want to be worrying about this stuff when you’re supposed to be relaxing and having fun!
We’ve been working with dentists for over 20 years and have hundreds of clients. Unfortunately, every year a small percentage get ill, or pass away. Some are in their 40s and 50s and some in their 60s, 70s and 80s – the thing is – although we don’t like to think about it, we just don’t know how long we’ve got.
Research carried out by Canada Life a year and a half ago, shows that three out of five adults in the UK do not have a Will, which means that there are around 31 million people whose property, financial and other assets could be left to someone they have not chosen when they die.
The research also shows that a whopping 65% of 45 to 54 year olds have not written a Will. Presumably this is because most people don’t expect to die prematurely, but we all know that unfortunately and tragically this happens all too often. The Covid pandemic has made me appreciate more than ever that life can be both precious and precarious.
Creating an up to date Will
As a financial planner, my whole “raison d’etre” is to encourage people to do the things they really want to do, and not to wait for that “one day” in the future when perhaps they’re ready to retire. But before we embark on the fun planning / dreaming stuff, we always find out if a client has an up-to-date Will that they’re happy with.
The summer holiday season seems like an ideal opportunity to encourage you to get out your Will, if you have one; check you’re happy with the executors, trustees and guardians; and make sure there’s no change to the beneficiaries or the ages you’d like any children to inherit.
If you haven’t got a Will, I suggest you find a local probate solicitor and book an appointment. It’s not expensive to do and normally not that complicated. There are of course options to do it yourself or online, but this is one thing you need to get right, so I’d always recommend engaging a probate solicitor to avoid making any mistakes.
Lasting Powers of Attorney
Another important step is to arrange Lasting Powers of Attorney (LPA). Many dentists we speak to think that this is just for their parents or those in their late 70s or 80s, but any principal dentists or those with assets that aren’t in joint names with their partner, should consider these.
An LPA is a legal document that lets you appoint one or more people – known as attorneys – to make decisions on your behalf if you ‘lack mental capacity’ because you have an accident or an illness and therefore cannot make your own decisions. So, if anything happens to your partner and they’re not able to manage their finances, you can simply step into their shoes and act on their behalf. Kate Garraway, a former journalist at ITV and co-presenter of GMTV, has spoken openly about her husband, Derek Draper, who contracted Covid-19 in March 2020. As they didn’t have an LPA set up, she struggled to take over the household finances, access his bank accounts or even change his mobile phone contract.
At least once a year my wife has to put up with me going through what happens if one or both of us were to die. Clearly, I want to make sure my family are OK financially if anything happened to me, but as a Chartered Financial Planner it would also just be too embarrassing if my affairs weren’t in order. So earlier this year, we re-wrote our Wills (again), re-drafted our Letter of Wishes, reviewed and updated our life insurance plans and had all the trust forms re-signed. I’ve just seen too many cases where fathers, mothers, husbands and wives have died prematurely, without a Will, and without enough insurance – sometimes there’s enough to pay off the mortgage, but just not enough to provide a decent level of financial security for loved ones left behind.
So, before you go on holiday this year, dig out your Wills, read them carefully and check that’s what you’d want to happen if you were to die prematurely. Then review your life insurance plans and make sure you’ve got LPAs in place. Then you can forget about it, pack your bags and fly off to have some fun.
Thomas Dickson is a Chartered Financial Planner at Wealthwide.
The value of your investment can go down as well as up and you may not get back the full amount invested. When investing your capital is at risk.
Checklist of things to do before you jet off:
Sort out your travel / car insurance
Check you have sufficient life insurance
Make sure any life cover is written in trust (so it can pay outside your estate – which is quicker and potentially saves tax)
Wills – signed and up to date
Lasting Powers or Attorney – you can arrange this yourself online -
https://www.lastingpowerofattorney.service.gov.uk/
Pack your bags
Have some fun