Estate Planning

A recent study reported that only 1% of the UK population has a lasting power of attorney (LPA) in place.An LPA allows previously appointed family members or friends to manage someone’s finances should they become unwilling or unable to do so.

Why do so few of us have an LPA in place? Is it because we simply do not know enough about them, what they really do or how relevant they are in the current climate of pension freedoms?

Few people realise there are two types of LPAs to choose from: health and welfare or property and finance.

A health and welfare LPA only becomes active in the event of incapacity.A property and finance LPA,however,can be used at any time after it is registered,not just as a result of physical or mental incapacity.

It is important to note that different attorneys can be appointed for each LPA.For example, those making financial decisions may be different to those dealing with your health care.An attorney only becomes legal once he/she is registered with the Office of the Public Guardian.

In addressing the importance of an LPA,it is wise to discuss pension assets and equity release matters separately.

Pension Assets

In the event of incapacity without an LPA,any funds would be held in limbo until the Court of Protection could award attorney powers to someone they deem appropriate.This is because a will only determines what will happen to funds after death.

A property and affairs LPA deals with pension matters for any funds held in the sole name of an individual.An LPA is relevant no matter how the funds are invested,whether still in the main pension or in drawdown.

An LPA can facilitate withdrawal levels and investment strategies,as well as adapting to ongoing needs over time.

Equity Release

With equity release drawdown plans, each time a further draw of funds is required, all named borrowers must be able to sign.LPAs are essential to securing ongoing access to further funds from a drawdown plan.

If you rely on access to pension assets or funds, blocking access could have a devastating impact on your finances.

We have a responsibility to advise our clients —be that releasing equity from their homes or recommending retirement strategies —to ensure that we are protecting their interests.

All too often we focus on the impact of death,which inevitably has a serious impact on all related parties.However,the impact of mental or physical incapacity can be far more serious.

We will review your existing provisions and, if necessary, facilitate the arrangement of a will and/or power of attorney.

We strive to be a core part of your financial planning process and will advise you on the need to look beyond pension planning or investments and discuss the stark implications of incapacity and death.

Financial Guides

January/February 2018 Magazine

January/February 2018 Magazine

ISA Returns of the Year: Taking control over where your money is invested tax-efficiently



A Guide to Estate Preservation

A Guide to Estate Preservation

Passing on your wealth in the most tax-efficient way.


News + Media

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Most people are quite surprised to discover just how much they are worth. How often have you heard someone say, “I’m worth more dead than alive”? Britons will pay almost £2 billion more in inheritance tax over the next five years than previously thought, official estimates have revealed. It will rise from an estimated £4.7 …


Further reduction in Lifetime Allowance or Annual Allowance on the cards?

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      I wrote in March 2016 the then chancellor George Osborne may consider further reduction in the lifetime allowance (LTA) however he decided to leave this at the current level of £1m, for the time being, growing numbers of worker’s risk tax shocks because they are unknowingly on course to exceed this limit. …


Can you read the future?

Saturday July 01, 2017

Investing is about the long game however are people getting nervous as stock markets in the US and UK bump around their all-time highs. Newspaper reports are beginning to speculate that a correction may be around the corner. The biggest danger isn’t the correction or a bear market, its being out of the market on …


Tapering of annual allowance for high incomes – adjusted and threshold incomes

Wednesday May 31, 2017

This measure restricts pension tax relief by introducing a tapered reduction in the amount of the annual allowance for individuals with an adjusted income of over £150,000 and a threshold income over £110,000. Key facts The annual allowance will be reduced for individuals who have ‘adjusted income’ over £150,000 a year. The reduction in the …



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