Whatever your level of wealth, there is nothing wrong in making the decision to prepare a risk aversion strategy. Risk aversion is a reasonable and prudent strategy for anyone who is sure that they already have ample to provide for themselves and their family into the future.
There are plenty of ways of preserving wealth in real terms, protecting against most of the uncertainties that may threaten it and allowing you to sleep at night, but the unidentified risks are a far greater threat to your wealth than tax. • Risk aversion starts with asking oneself a few questions such as: • Is my job secure? • What happens if my employer goes bust? • How secure are my investments? • What happens if a company I have invested in collapses or is unable to meet its obligations? • Is my occupational pension safe? • What happens if an elderly relative has to go into care? • What happens if I divorce? • Do I have enough insurance?
This is just a start, and you will no doubt identify others. It may not be the most motivational task but if you work through the implications of your questions and attach a probability to them, it can help clarify the issues and will form the basis of your risk aversion plan.
Our service is all about helping you with professional wealth management advice to create, build and protect your wealth and minimise your tax liability in a wealth preservation plan which we will develop and monitor over a long-term, on-going relationship.
It should be noted that the information contained in this section relates to our current understanding of the law of England & Wales as it relates to Lasting Power of Attorney which is subject to change. Laws in other parts of the UK will differ.
Managing your affairs and lasting power of attorney There may come a time when, because you are incapable of managing your property and financial affairs or personal welfare, you will need someone to do this for you.
You can formally appoint a friend, relative or professional to hold a lasting power of attorney that will allow them to act on your behalf. Lasting power of attorney (LPA) in England and Wales has no legal standing until it is registered with the Office of the Public Guardian. A lasting power of attorney is a legal document that lets you appoint someone you trust as an ‘attorney’ to make decisions on your behalf.
It can be drawn up at any time while you have capacity, but has no legal standing until it is registered with the Office of the Public Guardian.
A registered LPA can, unless the document states differently, be used at any time, whether you have the mental ability to act for yourself or not.
You may not be able to check up on the attorney yourself if you become incapable, so it may be a good idea to appoint more than one person to help prevent abuse of the responsibility. Choose people you can trust to act in your best interests. You should consider how well they look after their own financial affairs and whether you can trust them to use your money to meet your needs. Depending on the complexity of your property and financial affairs it may be a good idea to get advice from a solicitor before making an LPA. You can get further advice from the Office of the Public Guardian about making an LPA.