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Estate Planning: Securing Your Future & Protecting Your Loved Ones

Emily Jarvie
from Ross Cargill of Thorntons Law

As we approach the end of the year, it is an ideal time to reflect on whether your affairs are in order. As a Solicitor practicing in St Andrews, I have seen first-hand how proper estate planning can offer peace of mind and financial security to clients. Whilst penning this article the first Budget by Chancellor Reeves on 30th October looms with an air of mystery around the proposed changes to Capital Gains Tax and Inheritance Tax. By the time you are reading this article I am sure you will have questions about how the Budget will impact your own circumstances. On that note, now is the time to think seriously about your Will, Power of Attorney, and tax planning for the next generation. These crucial steps ensure that your assets are protected and that your loved ones are looked after in the event of unforeseen circumstances.


Why a Will is Essential

Let us start with the foundation of any estate plan—the Will. Many people put off writing a Will, but this document is essential if you want control over how your assets are distributed. Without one, the law will decide who gets what, which might not align with your wishes. For example, unmarried partners or stepchildren may not automatically inherit anything.


Having a Will in place ensures that your estate is distributed according to your preferences, minimising the risk of family disputes or unintended outcomes. If you already have a Will, it is equally important to review it regularly, especially after significant life events like marriage, divorce, or the birth of children. Failing to update your Will can lead to outdated provisions that no longer reflect your intentions.


Reviewing Your Will

Many people assume that once a Will is written, the job is done. However, life rarely stays the same. That is why I always recommend reviewing your Will every few years to ensure it still reflects your current situation. Whether you have acquired new assets, had a change in family circumstances, or even a change in tax laws, these can all impact the effectiveness of your will.


For example, with the Chancellor’s budget, there could be changes to Inheritance Tax thresholds, rules around gifting to family members or other financial measures that may influence how you structure your Will. It is always better to be proactive rather than reactive when it comes to such important decisions.


The Importance of Power of Attorney

Another key component of estate planning is establishing a Power of Attorney. This document can appoint someone you trust to manage your financial affairs and make decisions on your behalf should you become incapacitated. While it is difficult to imagine being unable to manage your own affairs, illness or accidents can happen unexpectedly. Without a Power of Attorney, your loved ones may face a lengthy and costly Court process to gain control over your affairs.


There are two types of Power of Attorney in Scotland: a Continuing Power of Attorney, which relates to your financial and property affairs, and a Welfare Power of Attorney, which covers health and welfare decisions. Having both in place ensures that all aspects of your life can be managed smoothly, should the need arise.


Tax Planning: Stay Ahead of the Game

Now let us talk about tax planning, which is often overlooked until it is too late. Careful planning can significantly reduce the amount of tax paid on your estate, ensuring that more of your assets go to your loved ones. Inheritance Tax (IHT) is something that can eat away at your estate if not properly planned for.

Gifting assets during your lifetime, setting up trusts, or even charitable donations can be effective ways to reduce IHT liabilities. Consulting with a Solicitor will ensure that you make the most of the available options, tailored to your individual circumstances.


A Proactive Approach to Estate Planning

Estate planning is about more than just money—it is about ensuring your wishes are respected and your loved ones are provided for in the future. By having a Will, appointing a Power of Attorney, and staying on top of tax planning, you can take control of your financial legacy.


As we (at time of writing) await the Chancellor’s budget, there may be changes on the horizon that could affect your estate. Whether it is tax reforms or new financial regulations, being prepared is key. At Thorntons, we are here to help you navigate these changes and ensure that your estate is managed in a way that reflects your wishes.


If you have not yet considered these essential steps, now is the perfect time to start. If you already have plans in place, there is no harm in reviewing them with a fresh perspective. Either way, taking action today can save a lot of complications down the line.

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