The Cobblers Shoes/ Making or updating your Will

I understand that the saying of the ‘Cobblers shoes’ refers to a Cobbler who turned out fantastic shoes for his customers, but always forgot to shod himself and his family well. There are many ‘life issues’ that come along which some apply the ‘Cobblers shoes’ to. Making or reviewing an existing Will is usually a good example.

I always maintain that there are a few basic financial planning cornerstones that need to be addressed before making use of various planning techniques. Maintaining an emergency deposit fund of 3-6 months’ income to meet any unforeseen demands is one and making (and keeping up to date) a will is another good example, along with trying to enter retirement debt free/mortgage free/repaid.

Referring again to the ‘Cobblers Shoes’ analogy, it has been some years since I reviewed my old will and it is amazing how time flies and both legislation and circumstances change. The original document certainly did not reflect the life changes that had occurred since the original document was finalised and witnessed. A good quality solicitor was employed and a new document, now reflecting my requirements, has been established. I would recommend that you consider the same action if you have not done so for a few years. You might want to make changes to reflect changes in your circumstances, such as the addition of grandchildren or, sadly, the loss of a family member.

If you die without a will in place, you die ‘intestate’. As you can see from the following link, this may not be something you want to happen: http://www.direct.gov.uk/en/Governmentcitizensandrights/Death/Preparation/DG_10029802

Dying intestate may also have negative inheritance tax consequences and you may want to bear this in mind when planning for your future and for that of your beneficiaries. As we have noted in previous Blogs, there are ways of mitigating an Inheritance Tax liability, such as using the annual gift allowance or using surplus income as a means of making efficient gifts away from your estate, documenting these where appropriate. We would recommend that you take individual advice on this subject if it affects you and would certainly recommend that you seek independent legal advice when drawing up a will for your circumstances. Speak to our own legal adviser/ Solicitor or, if you have not sought advice before, we can refer you to a local solicitor to help you with your needs.

Whilst looking at the issue of wills, I am sure your legal adviser will also raise the subject of achieving a Lasting Power of Attorney at the same time. For information, a Lasting Power of Attorney appoints someone (usually someone you know and trust) to make decisions on your behalf when unable to do so for yourself. It should be noted that it can take up to nine weeks to register a Lasting Power of Attorney. More details of the process can be found at the following link: http://www.direct.gov.uk/en/Governmentcitizensandrights/Mentalcapacityandthelaw/Mentalcapacityandplanningahead/DG_186373

The team at Chapters Financial can help you with your Financial Planning and Inheritance Tax Planning and we look forward to working with you. No individual advice has been provided in the content of this blog.

Keith Churchouse, Chartered Financial Planner, Certified Financial Planner
Director, Chapters Financial Limited, High Street, Guildford, Surrey.
Chapters Financial Limited s authorised and regulated by the Financial Services Authority. Number 402899

Chapters Financial Limited is not responsible for the content of external web pages.

Do you know that the provision of financial advice is changing soon??

The Financial Services Authority's (FSA) Retail Distribution Review (or RDR for Short) has been many months and years in the planning and will be implemented at the very end of 2012. 

Consumers need to be aware that these regulation changes and their effects on the delivery of UK retail financial services to the public will be significant. The FSA has started a process of raising the profile of the changes and we have also started to see the press joining in the process. I have no doubt that there will be much page space allocated to the topic over the autumn and winter months of 2012. It is important that those seeking financial advice know what these changes mean for them and the choices they will be provided into the future. 

The FSA has produced a consumer information document as a guide to the changes and to start the process of educating those seeking financial advice of what to expect in the future. This can be found at the following web-link here:  http://www.fsa.gov.uk/static/pubs/consumer_info/rdr-consumer-guide.pdf

Previously, I have noted these changes in my Blog in April 2012. Entitled 'All change in the delivery of UK financial services' further information can be found at the following Chapters Financial Blog-link: http://www.chaptersfinancial.com/30042012.php

The main headlines of these changes are:

• Two main definitions of financial advice provision. An adviser will either be independent or restricted.
• Financial Advice will be charged for on a fee basis bringing to an end the use of commission.
• A higher level of industry qualification (Level 4 as it is known) will be required from advisers and they will need a Statement of Professional Standing Certificate to provide financial advice.

At Chapters Financial, we have been successfully offering a fee-based model for over 5 years now and plan to continue to offer high quality independent financial advice into the future for both our existing clients and our new enquirers. For information, Keith Churchouse achieved Level 6 qualification in December 2007.

Because each consumer is different, as is their financial planning needs, no individual device has been provided in this Blog. 

Keith G Churchouse, Chartered Financial Planner

Director, Chapters Financial Limited

Chapters Financial Limited is Authorised and Regulated by the Financial Services Authority. Number 402899

Chapters Financial Limited is not responsible for the content of external webpages