There are many methods to aid in preserving your assets for your future generations. So what are the risks? Below are some examples of what impact divorce, remarriage, bankruptcy and long term care costs can have:

• Let’s look at an example of how remarriage could result in accidental disinheritance. Brian & Helen are married and make Wills leaving everything to each other and then to their children. Simple. But what then happens if Brian dies and Helen later remarries to Richard? Helen’s original Will is automatically revoked by her re-marriage so if Richard outlives Helen, her estate could automatically pass entirely to Richard and not to her children.
• What about divorce? If your children inherit your estate, any future divorce settlement could include their inheritance. Your hard earned assets could therefore be passed into the hands of your child’s ex-spouse.
• If one of your beneficiaries is an undischarged bankrupt when you die, their inheritance could used by the authorities to pay their creditors, potentially wiping out your legacy.
• Who bears the cost of long term care for the elderly is decided based on the local authority’s assessment of the person’s assets – if your assets are valued above £23,250 (which could include the value of your home) you’re likely to be assessed as being able to pay the standard rate. Given that average residential care fees start around £500 per week, it’s easy to see how quickly your assets could be eroded.

For all aspects of wealth preservation, talk to your adviser today.