For many investors, one of the most important things is to protect your family’s wealth and secure their financial future.
As such, we’ve put together this article to take you through some of the most effective ways this can be achieved, and why it’s important.
Read on to find out more.
Seek a modern wealth management service
One of the first, and potentially most important steps when it comes to protecting your family’s finances is to seek a modern wealth management service.
This can allow you to receive guidance from financial experts on how to build your family’s wealth in the right way for your financial situation.
Firstly, your advisers will take the time to understand your entire financial circumstance, so they can have a clearer idea of what recommendations to make.
They’ll conduct a full analysis of your income, taking into account your spending, what tax charges you face, and much more. As well as this, they’ll take time to learn what financial dependents you have, and what goals you have for each of their finances.
Also, if you have any concerns or challenges you might be facing, your adviser can help you address these in your approach. This can help you not only overcome these obstacles, but also develop more financial confidence for you and your family.
Invest in junior accounts
When it comes to protecting your family’s finances, you should also consider investing in junior accounts. For example, you can open a Junior Individual Savings Account (JISA).
With a JISA account, you can begin growing your children’s finances from an early age with tax-free investments.
JISAs allow you to save a certain amount of money each year that’s sheltered from tax, and this amount is determined by the annual JISA allowance.
As of the current tax year 2023/2024, the annual JISA allowance is £9,000.
This money cannot be accessed until your child turns 18, but you can contribute up to the allowance each year.
With well-planned contributions to your JISA, you can give your child a significant sum of money to withdraw tax-free when they’re older, to go towards things such as education fees, purchasing a property, or first car.
Leave an inheritance
Leaving an inheritance is also a good thing to consider for your family’s finances, as it allows you to leave behind your wealth to your loved ones when you pass away.
You can structure your estate to include various assets to pass onto your family – including things like cash, investments, trusts, antique items, and much more.
Once again, you should consider an adviser for this process to best help you navigate Inheritance Tax (IHT) on your estate.
For one, your adviser can help you make full use of your IHT threshold – currently £325,000 – so you shelter as much of your estate from IHT as possible.
Also, any value of your estate given to your spouse or civil partner is exempt from IHT, and if you give your home to your children your threshold increases to £500,000.
By passing on your wealth effectively, you can help protect your family’s financial future even if you are no longer here.
Protecting your family’s finances is an important goal for many, but with the right guidance, it doesn’t need to be a complicated one. Make sure you contact your modern wealth manager to begin discussing the approach that’s best suited to growing your family’s wealth effectively.
Please note, the value of your investments can go down as well as up.
