What is wealth protection?

Wealth matters. The assets we’ve acquired or created are critical in enabling us to lead the lifestyle we want. But it’s natural that we’d also want to preserve our wealth and pass on as much as we can to the next generation. It’s our legacy, providing the peace of mind that we’ve helped secure the future of our loved ones.

How we protect and provide that legacy is what wealth protection is all about, and there are lots of different strategies that can help us achieve it.

But it’s not always an easy subject to discuss. After all, death or serious illness are not things we necessarily want to think about. It’s emotional and complex, which is why it’s a good idea to seek advice from an experienced and impartial wealth adviser.

How can I protect my wealth?

There are a number of ways to safeguard your wealth for future generations. An effective wealth protection plan will often involve a combination of different strategies, tailored to your individual needs and preferences.

Life insurance
You are your family’s most valuable asset, but are you insured for what you’re really worth? Life insurance is a simple and effective way to help your dependents cope financially in the event of your death.

Critical illness cover
How would your family cope if you suffered a serious illness? What would happen if you survived but were unable to return to work soon, or indeed ever? Critical illness cover pays a tax-free lump sum on the diagnosis of certain life-threatening or debilitating conditions. It’s one way you can make a difficult time slightly easier.

Income protection insurance
Income protection can be invaluable in helping you cope financially should you suffer an illness or injury which prevents you from working.

Making a will
The foundation of effective wealth protection is having an up-to-date will in place. It gives you the peace of mind that, in the event of your death, your assets will be left to the people you intended. It can avoid confusion and upset amongst those you leave behind and, potentially, avoid an unnecessary tax bill for your estate.

Appointing a Power of Attorney
Should you become incapacitated and unable to manage your own affairs, a Power of Attorney ensures your loved ones can carry out your wishes on your behalf. It can save a great deal of money and distress.

Inheritance Tax planning
Early and effective planning is the best way to ensure your loved ones don’t incur a large tax bill in the event of your death. Inheritance Tax can have a big impact on your legacy. Your wealth adviser will be able to advise you on different ways to avoid that happening.

Trust planning
Trusts can be a complex area of planning, but in simple terms they can ensure that the right money goes to the right people, at the right time.

Property protection
There may come a time when you need care. The costs of residential care can seriously deplete your assets and, in many cases, your family home will need to be sold to help pay for it.

Property protection looks at how you can change the way your home is owned in order to protect your partner and/or beneficiaries.

Why is wealth protection so important?

The consequences of not having the right protection in place can be devastating. None of us know what’s around the corner. We might spend years building the wealth that enables us to be in control of our lives, living happily and comfortably, and providing financial stability for the ones we love. But death or serious illness could strip away that security and peace of mind immediately.

An effective wealth protection plan ensures that you and your family will be protected against any unforeseen circumstances. It provides peace of mind for you and them.

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.

Arrange a consultation

Explore what wealth means to you.