Whether this is from a business or personal financial perspective we should all use this time to pause, take stock of our individual and family positions and plan appropriately. Some of the things we recommend are:
Wills are not just for those with wealth to pass on, they are also important to make sure your loved ones are taken care of appropriately both financially and in some cases physically should anything happen to you.
If you don’t have a Will or it has been a long time since you reviewed yours now is the time to do it. We can help you by working with your existing legal advisers to ensure your Will is tax efficient or by recommending the right lawyer for you.
The market for investors is likely to be volatile for some time. At the time of writing it has been reported that UK companies have cut or cancelled dividend payments to store up against the impact of the coronavirus crisis so investors should prepare for the worst. If you have assets that have fallen in value, take the time to plan sales or make family gifts while asset values are low.
There is more detail on the tax advantages of planning in our pre-year end article. Not only is this sound tax advice it should also underpin the will planning mentioned above.
This can be crucial particularly in our current situation where if you do become ill you may need someone to look after your personal affairs and in the case of business owners, the running of your organisation. Dealing with this now will make matters much more straightforward should you find yourself in a position where you need it. We can work with your legal advisors to help decide an appropriate LPA and ensure your finances will be in safe hands if you are ever unable to handle them yourself.
Often times like these can bring out the best in society and you may want to help those in need if you can. It is worth remembering that if you make a gift to a registered charitable organisation, both you and the charity can benefit from tax relief. The gift can be in the form of cash or assets.
For every £100 donated the charity can reclaim £25. If you are a higher rate tax payer this will also reduce your tax bill by a further £25 for every £100 given.
This extra time spent at home may give you the time to reprioritise what is really important. Just don’t let your finances be last on the list.
If you would like to discuss any of the options mentioned above please contact your usual Crowe contact.