Simple steps can make succession much easier

Every adult in the country should give the topic of succession a bit of attention.

Getting around to planning one’s succession is a bit like tidying the garage or the attic.

We all have the intention of doing it, we are not sure where to start, and it’s one of those jobs we will put off for a long as we possibly can.

Sticking with the analogy, if unfortunately, you peg it without getting your house in order, then those you left after you will have the job of tidying up your mess.

Going through your stuff costs time and money, and a real danger exists that valuable assets might be thrown out or disposed of to the wrong person.

Sorting out your affairs should be thought of as a ‘whole-of-life plan’.

For instance, if you get sick or seriously ill, have you any form or insurance (such as income protection) which will protect your living standards.

Even basic procedures such as letting your spouse or partner become a signatory on your bank account can save an awful lot of hassle in the event of long- term illness.

Should you have an enduring power of attorney drawn up?

It will allow others, whom you trust, to take over your affairs, in the event that you no longer have the capacity to make decisions?

Should you prepare an advance care plan which will make your wishes known upfront about future medical treatment?

When it comes to death, the most simple of steps can avoid hassle, such as creating a valid will, clearly identifying the beneficiaries, clearly identifying the assets, and clearly separating out what assets are to go to whom, notifying your successors where the will is held (which solicitor), and updating your accountant with a list of assets can greatly aid the process of transferring assets.

Making proper provisions for those who are left after you is also a relatively simple step, that can make life easier for those who remain.

This can manifest itself as having adequate life assurance, considering how your partner may be fixed for widow’s, widower’s or surviving civil partner’s (contributory) pension; considering how any private death-in-service or pension cover may be available, should you die prematurely; or putting policies in place to cover prospective tax liabilities, with a view that successors will not have to sell assets to cover such.

From a tax planning perspective, there is huge merit in giving one’s ‘whole-of-life’ plan a health check.

After all, making proper provision for yourself and your family in the event of illness is best achieved when the tax consequences are, firstly, known, and secondly, minimised.

If it’s a choice between tidying the attic, clearing out the garage, or getting your whole-of-life plan together I think the latter deserves your attention, sooner rather than later.

Each individual person should obtain professional advice relevant to their own circumstances.