Family members who do not always make the best life choices – we all have them!!!
Here is how you can protect your financial assets for the benefit of future generations.
The Big Spender (Bankruptcy, debt and mismanagement of money)
We all have that family member who is just “not good with money.” The UK is currently in a “cost of living crisis” and on the brink of a recession. The news presents us with reoccurringheadlines of inflation rises, rent price increases, recurring interest rates rises, food inflation at its highest and mortgage repayment rates are up.
Despite all this financial doom and gloom, credit is far more accessible. Credit cards, Payday and Bed Credit loans and “buy now pay later” schemes are easier to access now than ever before. Hire purchase and finance agreements are no longer reserved for the purchase “larger necessities.”
Various reports lead us to believe that Gen-Z are rapidly falling into debt through the encouragement of social media trends such as Tik-Tok fast fashion combined with pay later payment plans. The House of Commons Library has reported that, ‘there were 29,589 individual insolvencies in England and Wales in Q4 2022, 1,660 more than in the previous quarter.’
The Hopeless Romantic (Divorce, when love and money don’t mix)
We do not always approve of our family members’ choices when it comes to love and when things do not work out, it could often be disastrous for the inherited or accumulated generational wealth.
According to the Office of National Statistics (ONS) ‘in 2021, there were 113,505 divorces granted in England and Wales, a 9.6% increase compared with 2020 when there were 103,592 divorces.’ There is no doubt that divorce rates remain high and close to 50%.
Solutions
So, what can be done to protect generational wealth from these modern everyday occurrences?
Contrary to widespread belief, Trusts are not just for the super-rich or well-to-do but accessible to all. By creating a carefully drafted Will or considering lifetime trusts one can potentially preserve and protect their wealth for generations to come.
Join us on….
When we discuss how Wills, Lasting Powers of Attorney (LPAs) and Trusts can safeguard you and your finances in life and in death.
