When reviewing your investment portfolio, you likely have a variety of financial documents and other pieces of information that let you keep track of where your money is and what terms it is currently subject to.
However, there is a collection of documents that are often overlooked when people are reviewing their savings strategies.
A myriad of legal documents exist to protect your wealth, so it is worth checking that you are using them effectively.
Prenuptial and postnuptial agreements
If the time has come to tie the knot, be that a marriage or civil partnership, it is best to be honest and upfront with your partner about finances.
These frank conversations can result in the creation of prenuptial or postnuptial agreements, depending on whether you formalise the arrangement before or after the wedding.
These allow each party to maintain individual ownership of assets and are vital should you divorce, as, without this document, your spouse may be entitled to a share of your wealth even if they did not contribute anything towards it.
Wills
Most savers should have considered their Will, but it is worth remembering to keep it up to date.
Any new investment or acquisition should be reflected in your Will to ensure that your beneficiaries know who stands to inherit what and do not devolve into dispute once you have passed.
Leaving access to online accounts is also vital as it can delay the probate process when passwords are unknown.
Lasting Power of Attorney
While the most common form of Lasting Power of Attorney (LPA) will focus on medical decisions, there is a financial element to this document that should be utilised.
An LPA should be created by everyone, much like a Will, as it will contain a clause to only take effect once certain criteria are met.
This will likely involve a medical proclamation that you are no longer able to manage your own financial or medical needs and that ownership of these decisions should pass to someone else.
Without an LPA, you will lose control over your investments and savings if you lose your mental or physical faculties.
An LPA can result in specific actions being taken with your money, meaning that your smart financial decisions now could pay for your care in the event that you need it.
While it is best to seek legal advice for all of these matters, our team can advise you on the financial aspects of creating these documents to ensure that your investments continue working for you no matter what.
For a saving strategy that adapts to any of life’s challenges, speak to our team.
