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Having a strong estate plan is a crucial part of your comprehensive financial and retirement planning. Laying out these plans in as much detail as possible is one of the best decisions you can make to ensure that your loved ones are prepared should any unfortunate event take place. A strong estate plan is a comprehensive arrangement that includes not only your will and power of attorney but your financial and medical information as well.

Completing your estate plan now can also have several benefits, such as ensuring your wealth and assets are distributed to those intended, minimising inheritance tax, and setting the course for your legacy after you’ve departed. 

Here are some tips on drafting up a secure, comprehensive estate plan:

1. Prepare a list of your current assets and liabilities

The first step would be to check what you have and what you owe—and with that information, calculate your net worth. 

Start by preparing a list of all your assets and debts. Include investments, properties, personal valuables, and cash value of insurance policies under assets, then subtract the sum of your debts and loans. 

Your lawyer or wealth manager can help assist you in determining if your estate is answerable to federal state taxes.

2. Create a will

This document will make sure that your instructions, should you die earlier than expected, will be followed according to your wishes. It also avoids any complications of dying intestate or passing away without a will.

While it may vary depending on where you live in the UK, intestacy laws seek to distribute the deceased’s assets equally between relatives in a specific order. However, these can be quite problematic for situations involving unmarried partners and step-children. This is why having a will prepared is crucial—to avoid any issues. 

Remember, however, to make it a habit to update your will if any significant changes occur. 

3. Consider several powers of attorney

A power of attorney appoints someone to act on your behalf if you become physically or mentally incapacitated. Two powers of attorney are worth considering as you complete your estate plan. 

The Healthcare Power of Attorney and the Financial Power of Attorney are documents that legally appoint a trusted individual to make medical and financial decisions on your behalf, should anything affect your ability to decide for yourself. These appointments ensure that your affairs will be set in order, even after you’ve gone or are debilitated due to unforeseen circumstances. 

4. Have all pertinent documents in order

Estate planning is all about setting your financial, legal, and proprietary affairs in order so that your family and authorised persons can execute your plans as well as they can. Ensuring that every bit of your decision-making is documented and available, whether manually or digitally, will help them manage the accounting and administrative aspects of your estate plan without spending too much. 

While this is by no means an exhaustive list, some of the documents you leave behind should include the following:

• Will and trust
• Power of attorney
• Bank accounts, credit cards, investments, and related information
• Property titles and deeds
• Loans
• Mortgages
• Pension and retirement plans
• Personal belongings with value

Conclusion

Finalising your estate plan can give you and your loved ones a sense of much-needed security. While the process never truly ends, it’s a relief to know that the most important aspects of your finances, legal affairs, and properties have been decided on. Make sure to continuously update your estate plan as your life and the laws change. Your future self will assuredly be grateful for it. 

Money management is an essential part of estate planning—which is why it’s best to get personal advice from trusted professionals. Here at Harry Robinson Wealth Management, we aim to guide you towards a better financial future by making wealth management simple and attainable. Our services include trust and estate planning, financial protection and insurance, and many more. Visit our website today to know more about our services.

*Will writing and Powers of Attorney involve the referral to a service that is separate and distinct to those offered by St. James's Place and along with Trusts are not regulated by the Financial Conduct Authority.