Financial planning advice for the elderly – Part 1 of 3
Financial planning advice for what’s around the corner!
Watching someone you love get older can be a very difficult experience but also one that we will all inevitably go through at some point in our lives. It can certainly have its challenges and sometimes thinking or talking about financial issues and the need for financial planning advice is the last thing anyone wants to do.
In this series of articles I’d like to provide you with a few different ideas you should be thinking about and then consider raising in discussion.
I do appreciate that when it comes to financial planning advice these discussions can often be very difficult.
However, when it comes to protecting the person and their own financial livelihood, these conversations can be not only positive but can also take a large share of the worry away at a very difficult time.
1) Wills and Power of attorney
You’ve heard me discuss Wills before and how important they are. I don’t need to rehash this again apart from saying there needs to be a Will and it needs to be both up to date and clear.
In addition to Wills, having a Lasting Power of Attorney is also very important. If someone loses mental capacity and is still alive it can be very difficult (or even impossible) for any relatives or loved ones to make financial or health decisions for them. Powers of attorney (generally administered by the Court of Protection) solve this issue and can take away a significant amount of pain. The key issue with powers of attorney is they need to be made whilst your loved one still has capacity – please don’t wait until it’s too late.
2) Review current policies and position
A major consideration that is worth looking into is reviewing the current policies your elderly relative has. Are they still paying into schemes that are now not relevant and/or out of date?
I’ve come across many situations where relatives look at their bank accounts and find direct debits still going out to places that ceased to be relevant a long time ago. It also may be helpful to start collating all their assets or documents into once place so you are aware of their current financial position.
In my role, I have been handed folders and even boxes full of documents a number of times with the comment “that’s everything, we’re not sure how much it’s worth but that’s all the paperwork.”
Here is a list of key documents you will need to locate:
- Power of attorney
- Life insurance
- Other insurance (health, house, car)
- Pension details (both state and private)
- Tax returns
- Property deeds
- Mortgage information (if relevant)
- Bank accounts, share certificates, endowments and/or other investment accounts.
Once you have the documentation it’s also worth putting together a list of income, assets, insurance policies and names of professional advisers (accountants, lawyers etc.) who have helped your relative in the past.
That way all the basic details are in one place and you’ve got a good idea on the current financial position and are perfectly placed to obtain reliable financial planning advice.
Part 2 coming next ……. Funding Care and Inheritance Planning.
About Kevin Wheeler
My career in the financial services industry started over 30 years ago and I joined Sterling & Law in 2014.
I can offer a wealth of experience in both the personal and corporate sectors, in areas such as (workplace) pensions, pension transfers, retirement provision, life insurance, investment and inheritance tax planning.
I am also Sterling & Law’s specialist auto enrolment project manager, designing, planning and implementing auto enrolment solutions for employers since the auto enrolment regulations were introduced in 2012.
I provide a thorough professional service and aim to develop lasting relationships with my clients.
I am married with two teenage children and enjoy playing tennis, table tennis and going on bike rides with the family.