LATER LIFE PLANNING
HELPING YOUR CLIENTS SPREAD A LITTLE KINDNESS
Elaine Cruickshank Tax and Trusts Manager Aegon
As we approach the second year of the pandemic , people
will be thinking about planning for their family ’ s future . For some , the number of deaths reported every day in the media may make them think about their own mortality and what will happen when they ’ re no longer around . Others may want to offer financial assistance to those family members suffering financial hardship , and some may want to make gifts for the benefit of their minor children , or grandchildren , with the savings they made last year . Whatever their circumstances , your clients will need your help to make the right decision and be better prepared for whatever eventualities they or their family members may face . Helping your clients make sure they ’ re prepared
1 . Put a will in place One of the first things your clients should consider doing is putting a will in place . If they already have an existing will , you should consider encouraging your client to review this , to make sure it ’ s still valid and reflects their current wishes , especially if their family circumstances have recently changed . If they don ’ t have a will in place , then on their death , the intestacy rules apply . As a result , their estate might not pass to their intended beneficiaries . For example , common law spouses don ’ t have any rights under the intestacy rules .
2 . Review death benefit nominations Pension and / or life insurance death benefit nominations might not be on your client ’ s mind , but they should consider reviewing these to make sure they ’ re still up to date and reflect their current wishes .
3 . Consider a personal protection or whole of life policy A personal protection policy or whole of life policy in trust , could provide a legacy for the benefit of a surviving spouse , children and / or grandchildren . The policy could pay out a lump sum on the death of the insured person , or it could be a family income benefit policy , paying an ‘ income ’ for the remainder of the term of the policy . The regular ‘ income ’ payments , being capital in nature , would not be subject to income tax . So you may wish to make sure your client is aware of these policies and the implications .
What about giving gifts to support family members ? Older family members may want to offer support to the younger generation , who have lost their job or are struggling to make ends meet , so making a provision for gifts is a good conversation to have with your clients .
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