If you’re a high net worth individual and you’re looking to secure a good financial future for your family, then this post will help you understand the key role that insurance can play in effective legacy planning.
If you’ve got any questions about your insurance needs as a high net worth individual, we’re always happy to help. For more information, call us on 0208 290 9086 or email us at personal@anthonyjones.com.
What is Legacy Planning?
Legacy planning means making certain preparations so that you can leave your assets to your family after you pass away, while ensuring that your estate is managed in accordance with your wishes. Good legacy planning also means anticipating tax issues and legal fees in advance, so that your loved ones will not have to worry about any unexpected bills.
The legacy planning process usually involves working with a financial adviser to create a clear plan for what will happen to your estate once you pass away. This is particularly important when it comes to assets that will require ongoing management, such as real estate, businesses, or farms.
You, your financial adviser, and your successors will work together to create a succession plan, and an ongoing management strategy for your family members to follow.
How Insurance Can Make A Difference in Legacy Planning
Insurance can play an essential role in helping you secure a solid legacy for your family, particularing relating to:
- Protecting your assets
- Life insurance
- Probate insurance
We’ll explore each of these individually below.
Protecting Your Assets
High net worth insurance can cover your home, your business, and your valuable possessions for loss, theft, or damage.
An essential part of legacy planning is reaching, and maintaining, a level of financial security that will allow you to leave a good legacy for your family. Insurance can provide essential peace of mind that you’ll be able to protect your assets, and still leave a solid financial legacy, should any unexpected events happen.
Life Insurance
Some high net worth individuals choose to use life insurance policies as tools for legacy planning. It’s possible to use the payout from a life insurance policy as a tax-efficient means of transferring wealth to your beneficiaries, as it could help them avoid excessive income or inheritance tax payments.
Probate Insurance
Probate is the legal right for an executor to manage your affairs in accordance with your will. In UK law, a will’s beneficiaries cannot do anything with their inheritance until probate is complete. This can cause some issues when it comes to property. The property may be unoccupied throughout the probate process, which can take months, and most home insurance policies only cover occupied properties.
If you are leaving any property as part of your legacy, then probate insurance can play a crucial role in keeping that property safe and secure throughout the probate process. It will provide full cover for any property in your estate for as long as it is unoccupied. Learn more about probate and property here.
Insurance Can Play a Vital Part in Estate Planning
Shuaib Rahman at Anthony Jones says:
“Insurance can be a vital part of effective estate planning. It can help you and your loved ones manage the demanding legal fees and taxes that can arise following a death. It can also provide essential protection for your assets, to help you ensure that you have a solid financial legacy to leave to your loved ones, no matter what happens.
“At Anthony Jones, we can advise you on the insurance cover that could provide you and your beneficiaries with an essential safety net, so that you can proceed with your legacy planning with total confidence.”
If you’ve got any questions about your insurance needs as a high net worth individual, we’re always happy to help. For more information, call us on 0208 290 9086 or email us at personal@anthonyjones.com.
