To mark UK Financial Planning Week, Simon Boulter, of Exeter-based financial planning firm Boulter Bowen, offers his top 10 tips to make sure you are prepared for any eventuality1. Cash is held in a joint account to help meet the immediate needs of any dependents
A friend of ours in Spain recently passed away. His only asset in the UK was a bank account in his name, but in the absence of a valid UK will, it took his widow nearly six months' negotiating with the bank's legal department to access what was now hers. Had this been a joint account it would have taken only a few days.2. Someone I trust knows the location of all my secret passwords
A client of ours went into hospital for a routine operation, but a surgical mishap meant that he spent two weeks in intensive care in a coma. He banked online, for both him and his wife, but only he knew the passwords. His wife had to negotiate with her own bank to release funds at a time she least needed that hassle. Fortunately we had details of the accounts and were able to help.3. I can access copies of all important documents from anywhere in the world
A client travelling to the USA discovered his passport was missing as he was getting off the plane. We held a copy of this document as part of our money laundering process and we were able to email this to him to get him out of an otherwise difficult situation.4. Someone knows how my house works if I am not there
Two clients went travelling for six months, redirecting their post to our office so that we could email them if anything needed their urgent attention. Becky, our bookkeeper, saw that a water bill was way above what it should be. She emailed the clients, who then called their neighbour who found a water pipe had burst. This was fixed before they got home.5. I have access to the contact details of all of the people who need to know in the event of an emergency
We all have support networks locally and around the world. Can you contact them when you most need their support?6. I have appropriate powers of attorney in place should I be unable to deal with my own affairs
An elderly client suffered a severe stroke, and now needs expensive and continuing care. His will left everything to his wife and then to distant relatives, assuming that he would be the first to die. We arranged for explicit instructions to be drafted to his attorneys, to ensure that his care would continue to be funded, should his wife predecease him and the relatives challenge the high level of spending on his care.7. All of my life insurance policies are written in appropriate trusts
On a regular basis we meet clients who have insurance policies that would fall into their estate on death, creating delay and unanticipated inheritance tax liabilities. We always make sure that any such 'legacy' policies are written in trust, the policies eventually expire and nothing comes of this planning, although last year we did have a younger client who sadly passed away leaving a young family. Putting his policies in trust meant that his dependent had the policy proceeds within a matter of a few days.8. Wherever we (or our families) are in the world, we have immediate access to cash
The granddaughter of one of our clients went on a gap year. They were concerned that she would always have access to cash in an emergency. Rather than give her an actual cash reserve, which would in itself cause potential risks, they set up a 'cash passport card' loaded with £1,000 for instant access for use only in emergencies. Fortunately she came home safely and the card was returned to her grandparents, to be given to her brother for his travels.9. My will recognises that I might die at the same time as my spouse or partner, for example in an accident
We were the culprits here, all of my own and Mo's planning was based on the premise that one of us might die, but not both. It was only when Issy, our 17-year-old daughter, asked what would happen to her and her brothers in this scenario that we realised our planning had missed this potential occurrence. Needless to say, our wills and letters of wishes have now been amended and discussed with our children.10. I have appropriate insurance in place to provide for myself and my dependents should the need ever arise
We always say that there are some things that shouldn't be selected on the basis of price alone. Fire extinguishers, life jackets and parachutes are some or those, insurance is another. Would your travel insurance cover you in similar circumstances?
Planners around the country are hosting free financial advice surgeries during Financial Planning Week – a full list can be found at www.financialplanning.org.uk.
There is also an online Ask a Planner tool where consumers can submit questions to a Certified Financial Planner.
On Friday, November 29, at 1pm, there will be a live Twitter chat where consumers and financial advisers can get involved in answering questions and sharing ideas. The Institute of Financial Planning will post a series of questions for discussion and advice over the course of an hour or so. Just log into Twitter and follow #FPWUK
