Estate planning and mini budgets

 04 October 2022
Estate planning and mini budgets

It’s been a turbulent period for the government, with big announcements followed by impressive U-turns and reassuring speeches at the annual party conference.

The dramatic announcements on the highest rate of income tax and government borrowing in the ‘mini budget’ sent the markets into a flurry, and the currency into a nosedive. As so often happens, the media had a field day with “doom and gloom” worst case scenarios. As a result, a fair few of us probably lost sleep over the cost of living, funding our retirement, our care costs and our legacy.

And breathe…

As so often happens, things have somewhat calmed down again. U-turns have been made. Things are by no means “sorted” but at least the pound has rallied, the government have “listened”, and the markets are less jittery.

Yes, there are substantial challenges ahead in the short term, but investments and estate planning are not about the short term. Confidence comes from well thought-through plans and decisions based on a holistic viewpoint and strategies. (Take note, Ms Truss…)

Acting now to reassess your own financial and estate planning can help smooth out the impact of unexpected potholes and rocks in your future lifestyle road.

Power cuts and four-day weeks

After all, for those of us past retirement age, we’ve seen it all before.

  • We’ve seen crashes and downturns and growth and boom, and everything in between.
  • We’ve done homework by candlelight and worked four-day weeks due to power cuts.
  • We know what it’s like to wear a sweater inside the house and not have the heating turned up to “flip flop and t shirt” temperatures.

Most of all, we remember because it had an impact on us, and we’re very glad that impact has long-since passed. We are, however, also aware that such events may happen again (and more than once), and that’s why we make plans for ourselves, our future and our family.

Who’s afraid of estate planning?

Estate planning can seem a daunting task, bit it is really just taking a holistic view of:

  • what you have now
  • what you want to keep
  • what you can afford to pass on to future generations

That last point – what you can afford - is important. Many seniors grew up with the expectation and tradition of leaving as much as possible in your will to support the next generation, i.e. “leaving something to the kids”.

The kids are (usually) alright

Now we are living for longer, our children are usually well-established in careers and with financially independent children of their own by the time we reach our 80s. They may not need a share of monies or assets from our wills. Equally, your grandchildren may not even expect anything as they forge their own lives ahead.

However, you may need more in your later years to ensure a comfortable lifestyle, and that includes long-term care provisions. There is simply no point in saving money for the grandkids if your adult children are having to pay for (or at least help subsidise) your care now or in a few years’ time. The promise of “jam tomorrow” in terms of a bequest in your will won’t help with their cash flow.

Time for a review

If the dramatic events of recent days have left you a little unsettled, it’s a perfect time to review both your financial planning and estate planning. Yes, much of it will be going over what you already know and have in place, and you may not actually need or want to change much.

The important part is that you have done a review and know where you stand right now, so you can plan for the future.

  • For many of our clients, an estate planning review is a deeply reassuring process to know that actually they’ve got much of it right already, and their plans only need tweaking.
  • For others whose circumstances have changed more dramatically, it’s a chance to put plans back on track based on our informed, professional advice, rather than jumping on every negative media story bandwagon.

Book your review today

If you’d like to review your existing estate planning, or start the process of planning for the first time, contact us for your initial consultation with Panthera Estate Planning’s founder and director, Paul Hammond

As a regulated financial advisor, Paul can advise you on ways to maximise your wealth, assets and income to pay for your future needs including long-term care , whilst continuing to live the lifestyle you wish now.

How to contact Paul

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I am happy in the knowledge that should anything untoward happen in the future, Panthera will resolve the problem.

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