If you draw income from your pension or investments ask yourself – do you have a Power of Attorney in place?
If you are taking an income from your pensions and investments and these are managed by a financial adviser, then you will likely meet up with your adviser at least once a year. At that meeting they will hopefully not just discuss how that investment has done, they should also focus on what your income needs are for the forthcoming year and how these can be met. You will then agree a tax and withdrawal strategy to get said income. Your adviser will chat through any changes to your circumstances, health and how you feel about taking investment risk.
If you lose capacity, either temporarily or permanently it is essential that you nominate someone you trust to make these decisions on your behalf – an Acting Power of Attorney. Your adviser can liaise with this person to ensure that your income continues – it might need to increase to help pay for care costs for instance.
The absence of a Power of Attorney when needed can mean that there is little flexibility when it comes to meeting financial requirements. It may not be possible to start, stop or vary pension withdrawals from a flexible pension. It may also mean that other lifetime savings are not accessible. As a result, you may not be able to make the most of your tax allowances and end up paying more tax than necessary. In turn, this could mean that savings don’t last as long as they might otherwise.
Here at Robson Laidler we can assist with putting Wills and Power of Attorney in place.
If you need help with this, please get in touch.