If you want to make sure that you have protected your assets from inheritance tax then you need to be ahead of the game. Consider the following tips to ensure that your assets are well-protected.
Create a will
If you don’t have a will then it will be the government who decides what happens to your money and assets from your estate. If you have a will in place you can make your own decisions as to where you would like your money to go after your death. You could also use a will to create a family trust. What is important is that if any of your circumstances change, for example, there is a new addition to the family, you need to make sure that you keep your will updated. Making a will is probably one of the best ways of ensuring the people you love benefit from your assets. Writing a will has been made much easier over the years with many firms able to offer will writing services to suit all budgets.
Health and life insurance and house insurance companies all protect assets in different ways and all are great ways of protecting our assets. Having health insurance can help maintain an income whilst you may need medical attention. Whereas home insurance protects your home in the event of a loss.
A financial advisor or professional business advisor will be able to steer you into the right type of long term plan. Protecting your assets does not need to be challenging and with the correct advice, this can be made easy. If your adviser points you to look at buying a rental property, then nz rental property tax deductions will be something you will have to factor into your accounts, as this could affect your asset value.
Careful planning and preparation are the key for making sure that you get the most out of your assets. When chosen carefully, assets will protect themselves. You just need to make sure that you keep a regular check on your investments as this will be a sure-fire way of ensuring your assets are always protected.
Ownership of your home
In most cases, couples both own their home, meaning you and your spouse own the entire property. However, it is worth changing the ownership of your property so that you become tenants in common, This means you both own half of it. The issue with owning it jointly is that if one party dies, the house automatically belongs to the other party. If, however, you become tenants in common, you can choose who you want to give your share of the property to if you want to give it to somebody other than your spouse. It is an easy thing to do and it is not expensive, but you need to make sure that you think this decision through carefully with your spouse before you go ahead and do it, as this may put pressure on your relationship.
Make sure you have the correct insurance that does not only protect your finances, but it could also help in the event of a stressful situation. If you drive, you will already have car insurance and you are likely to have home insurance too and you may even have some health insurance. When you’re looking for insurance policies, don’t just look at the premium, also have a look at all the other benefits of the policy to see what you are getting for your money. Make sure you try and look for discounts where possible. Quite often, insurance companies are happy to reduce the premium if you have more than one policy with them or if you sign up for a new policy.
Another factor to consider is life insurance, especially if you have dependents who rely on your income. In general, most people require a 20-year life insurance plan which will cover any children through their university years. This will also help towards any debts, such as a mortgage which would otherwise end up falling on your family. If you plan ahead and put life insurance in place at a young age, it will not be as expensive.
You should always have between 3 and 6 months worth of money saved away for your emergency fund. This is there for when you have those unexpected situations which can arise, such as the refrigerator breaks down or your roof begins to leak. If you don’t budget for this, then you will end up in a situation where you need to borrow money. Another advantage of an emergency fund is that it can help you if you end up in a situation where your salary is reduced or you lose your job.
Therefore, to have a backup for these unfortunate situations, you need to put small amounts away each month and it will soon start to add up. It may be worth setting up a system with your bank where the money is automatically deducted each month and it’s not something you have to think about. If you do this, you’ll soon not even notice that the money has been deducted.
Make sure you are aware of the state of your pensions. Usually, employees pensions are written in trust which means that upon your death a lump sum payment is given to whoever you nominate. If you have any personal pensions, these also need to be written in trust as well. This means that your pension can be passed on and it will be tax free. You need to ensure that you do this before you are in poor health and before the age of 75.
By taking these 6 tips into account you’ll make sure that you can rest assured and know that your assets are well and truly protected.