What is wealth protection?

Business | 05/10/2021

What is wealth protection?

The concept of wealth protection is the incorporation of different strategies used to preserve and secure your fortune for the next generation. Regardless of where you are in your life journey, looking after your money now not only helps you to lead the lifestyle you desire but helps plan for the future of your loved ones.

As this can often be an incredibly complex and emotional subject, it’s always a good idea to seek advice from an experienced and impartial wealth adviser.

How can I protect my wealth?

To safeguard your assets for future generations, you should consider a combination of wealth management strategies tailored to your individual needs and circumstances. Different options available are:

  • Life insurance:
    Helps your dependents cope financially in the event of premature death
  • Critical illness cover:
    Pays a tax-free lump sum on the diagnosis of certain life-threatening or debilitating conditions. You may for example survive an illness but are unable to return to work straight away or indeed ever
  • Income protection insurance:
    Will help you to cope financially should you suffer an illness or injury which prevents you from working
  • Making a will:
    Gives you the peace of mind that on the event of your death, your estate will be left to the people you want it to go to. Read more here about will and estate planning.
  • Appointing a Power of Attorney:
    Provides someone with the legal authority to act on your behalf
  • Inheritance Tax:
    Your wealth planner will be able to advise on the different ways you can prevent your loved ones incurring a large tax bill on the event of your death
  • Trusts:
    Enabling you to pass your estate to the right people, at the right time
  • Property protection:
    If required, the cost of residential care can seriously deplete your assets and in many cases, your family home will need to be sold to finance this. Property protection looks at how you can change the way your home is owned in order to protect your surviving partner and/or beneficiaries.

Why is wealth protection so important?

Failing to have appropriate protection in place can often have devastating consequences. There’s no certainty about what’s around the corner. We spend years building up our asset base so that we can better own our lives, living happily and comfortably, whilst also being able to provide financial stability for the ones we love. If you’re no longer able to work, the last thing you’ll want to do is sell off any hard-earned assets to pay for healthcare or living costs.

Wealth protection is so incredibly important because it:

  • Protects you and your family against any unforeseen circumstances
  • Considers legalities you may have overlooked.
    For example, if you own a home in a foreign country, you may be liable to certain taxes or have an obligation to pay for certain levels of insurance. If you’re unaware of this, you could potentially be breaking the law, resulting in hefty fines or even prosecution.
  • Protects you against events which may require a sudden and large need for cash. This could be anything from flood damaging a home or a car being written off to an accident, illness or death.

 

If you would like further information about how you can safeguard your assets, please don’t hesitate to get in touch and one of our expert wealth managers will be more than happy to help.

 

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

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. Wills and Powers of Attorney are not regulated by the Financial Conduct Authority.

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