With the start of a new year, many of us find ourselves reflecting on areas of our lives that could use a little more organisation and foresight.
While resolutions often focus on health, career, or personal growth, one crucial aspect that often gets overlooked is financial planning.
Getting your finances in order can provide peace of mind for you and your loved ones, and can ensure that there are no arguments or drama over key decisions in the event of something happening to you.
1. Make sure there is ‘no drama’
It’s important to arrange a Power of Attorney (POA) while you’re still fit and able, and doing so can offer a great amount of peace of mind.
Without a POA, if you are unable to make decisions for yourself, no one will be able to step in – not your spouse, not your children, not your siblings.
When you grant POA, it isn’t about giving your life away – you are effectively just granting someone (or some people) the legal power to act as if they are you in certain circumstances.
These loved ones can then make any key decisions about your care and wellbeing in your best interests, meaning you and your family can rest easy about the future knowing you’re in safe hands.
2. Get your finances in order
A huge worry for many is the prospect of moving into a care home and losing your financial assets to cover any fees.
If you have capital assets worth £29,750 or more, you are required to meet your own care costs in full. If you go into care and your pension and savings do not sufficiently cover the cost of fees, the local authority could take your home.
A trust can be a great way to manage and preserve your financial assets, including the family home. It distinguishes the property owner from the person who gets the benefit of the trust property, while you still hold legal ownership and control.
3. Your choices, honoured
When organising your finances and planning for the future, it’s also recommended to put a Will in place.
If you die without a Will, the rights of succession will dictate how your money and assets are distributed, which may not be in the way that you wanted.
For example, if you’re not married or in a civil partnership, your partner won’t automatically inherit your money. Or, if you’re a parent with young children, there won’t be any instructions on who assumes guardianship or how your children are to be cared for.
A Will also allows you to detail things that may be otherwise overlooked, such as money stored in digital assets or particular, smaller items to be given to specific loved ones.
Trustworthy, helpful advice
If you’re looking to get your finances in order in 2025, ILAWS Scotland can help by taking the time to understand your circumstances and offer honest, expert advice.
Seen on TV, the firm has experienced considerable growth and excellent client satisfaction over the years. With more than three decades of experience, it helps customers across the nation while still maintaining a local, hands-on approach.
Book an appointment to grant POA with up to three attorneys now for £195 (+ VAT and the Scottish Court registration fee of £96).