If you are on a countdown to retirement, or newly retired, follow these simple steps to protect yourself and your loved ones.
This year, around half a million people in the UK will reach State pension age. It’s safe to assume the vast majority of them will retire. In addition, a large number of other people will take early retirement, or start the countdown to retiring in 2021.
This means there are probably around a million people in the UK with retirement on their minds. Most will be thinking about the financial aspects of retirement, which is sensible. But there are also important legal issues to consider at this stage of life, or preferably before.
Make a Will
The number of otherwise sensible people who ‘haven’t got around’ to making a Will is staggering – well over half of UK adults don’t have one.
We say ‘otherwise sensible’ because not having a Will could mean your partner, other relatives, or children from previous relationships, your friends or a charity miss out on property you want them to have.
You could also be leaving them a legacy of long-running legal disputes, expense and distress. By making a Will, you can help protect them from all this.
Appoint a trusted attorney
Around 40-50% of us will suffer a period of incapacity in our lifetimes. If this happens, and you don’t have a Power of Attorney, your family may be unable to carry out the simplest of tasks – such as paying bills.
They may also be unable to make important decisions about the care you receive or how it is funded. Instead, they would need to go to court to get a guardianship order, a process that can take months.
Having a Power of Attorney should avoid this scenario. Clients sometimes ask us if a ‘Living Will’ offers the same protection as a Power of Attorney – the article called Is a Living Will the same as a Power of Attorney? explains some important differences.
Take advice on the small print
Many of the decisions you make in later life – from pension decisions to planning for care – come with significant paperwork attached.
Rather than just sign on the dotted line, it’s useful to have documentation checked. For example, a contract for equity release or the terms and conditions of a care home could land you with long-lasting financial consequences if you are not careful.
With this – just as with Wills and Powers of Attorney – prevention is usually cheaper and easier than cure.
To return to the main contents of lindsays life issue 18, please click here.
