• Trustees Private Wealth

Oct 31, 2020

Five Strategies to Protect Family Wealth

Estate planning is one of the most important things you can do today to take care of your family when you’re no longer able. Unfortunately, it’s also something many of us try to put off as long as possible. No one wants to think about, much less plan for, their own death or incapacitation. This is a problem, because it means that many people never get an estate plan, and many others never properly personalise it to their needs, goals, and their family’s overall situation.

A general strategy is a great starting point of course, but building an estate plan that covers every important issue is a process that requires time, consideration, and professional support. It’s not just a simple will. Instead it might include creating a wealth management strategy, establishing trusts to accomplish specific goals, putting enduring powers of attorney in place, and getting the support you need to keep the estate plan updated and relevant over the coming years.

  1. Start with a focus on wealth management

The first step in estate planning is to optimise your wealth management strategy. A solid wealth building and management strategy (or Financial Plan) is essential for setting and meeting your financial goals for retirement, and for your estate once you no longer have need of it.

Your strategy will be adapted to your particular situation and needs. To help define and achieve those wealth management goals, and to develop your estate plan in its entirety, it’s a good idea to work with a financial adviser. They can help you set goals, create workable solutions to debt or investment risk, to keep track of how your investments are performing, and to help you protect your assets for the next generation.

  1. Consider whether a trust is appropriate for your situation

Trusts are, among other things, well-established financial tools in estate planning. They allow you to protect assets, and ensure that they are used or disbursed in the manner of your choosing—even after your death or incapacitation. For example, they allow the settlor to set aside assets for a specific purpose, such as paying for the care of a disabled relative, or to provide an income to someone who can’t manage their own financial affairs. They can also protect specific properties, such as homes or businesses, ensuring that they are handled in accordance with the settlor’s wishes.

Depending on your need, an alternative to a typical living trust is to establish a testamentary trust, which is set up through a will. This is a cost-effective option for future planning and can provide for family, friends and charities.

  1. Put Enduring Powers of Attorney in Place

Enduring Powers of Attorney (EPAs) allow you to appoint someone to make decisions on your behalf in the event that you are no longer able to do so. Setting up EPAs can make things much easier for your loved ones in what will be a difficult time if you become incapacitated. An EPA gives you peace of mind that someone you trust has the power to not only look after your welfare, but make decisions about your finances and property such as house, bank and investment accounts, and deal with bills and utilities companies.

  1. Don’t forget about your will

An estate plan is more than just a will, but a well-written and up-to-date will is the core of every good estate plan. Your will is your way to have your say after you’re gone. It allows you to make sure your loved ones are looked after, to leave bequests and gifts, to support charities, to make sure family heirlooms are left in safe hands, record funeral wishes, and to appoint guardians to take care of your children. Without a will, the law decides how your estate is distributed, meaning that some or all of your assets might go to people who you didn’t intend.

  1. Seek ongoing support

Building a comprehensive estate plan isn’t a single task. One of the mistakes we frequently see is that people will create an estate plan and then never update it or seek advice as their situations change. Families experience changes in the number of beneficiaries and particular assets, and regulations and laws can change. That’s why it’s so important to seek ongoing support for your estate planning. With regular updates to your investing strategy, legal documents, and wealth management, you can protect your family and assets and have peace of mind.

To discuss how Trustees Executors Private Wealth can help you plan for and protect you, and your family’s financial futures, take advantage of a complimentary consultation with one of our team.


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