If you are approaching retirement, or you are in the process of retiring, you may focus on the change to your everyday life and neglect some less obvious points when retirement approaches.
Wills and Lasting Powers of Attorney
Retirement can constitute a big change in personal circumstances, particularly if you no longer hold the same proprietary interest you once held in the business. Your Will may have been drafted with your business assets in mind so it is sensible to revisit it to check it is still relevant to the assets you own now. You may even find your Will can be simplified.
The other legal document you might consider making or revising, is a Lasting Power of Attorney (LPA). There is a common misconception that you make an LPA when you are becoming unable to manage your affairs or make decisions. In reality, an LPA needs to be made when you are mentally able to make an informed decision as to who you wish to appoint as your Attorney to act in the event you ever become unable. Retirement is an ideal time to put LPAs in place as you’re likely to be mentally able and if you have children, nephews or nieces you might be looking to appoint as Attorneys, they are likely to be of age and therefore able to be appointed to act as your Attorneys.
Have you made or been involved with any Trusts at any stage? The UK’s implementation of the European Union’s 5th Anti Money Laundering Directive (5MLD) has drastically expanded the types of Trust which are required to be registered with HM Revenue & Customs’ Trust Registration Service. When revising your affairs, don’t forget to check whether any Trust you may be involved with, no matter how old or dormant it may be, requires registration under the new legislation. It is anticipated that fines will be applied to those who fail to register their Trust and fail to keep the register up to date so now would be a good time to get ahead.
Digital and Crypto Assets
If you are recently retired, bought out of your business or otherwise, you may have experimented with digital or crypto assets. Given the digital nature of these assets there is a tendency not to hold any paper or physical note of the existence of such assets. If no arrangements have been made to ensure your executors can access crypto assets, the assets will quite simply die with you. Keeping an asset log, but taking steps to ensure it is secure, is a good way of making sure that those you appoint to deal with your estate on your death, or handle your affairs should you ever become incapable, can do so with relative ease.
For further information on retirement planning please contact one of our Wills, Tax and Estate administration experts who will be happy to assist.