Wealth protection is just as important as the creation of wealth and will safeguard both you and your family's futures.
Family
You may have relatives who are financially dependent on you. Having this dual financial responsibility makes it all the more important to consider how loved ones would cope if you were to suffer an incapacitating illness or even die. They need the assurance just as much as you do that your assets are protected, and by putting strategies in place to safeguard your wealth, you are also ensuring that your dependents keep their financial security. At least one million Britons are thought to be financially responsible for both younger and older family members, so this situation is very common.
This scenario also applies if you have left assets to family members in your Will – you need to ensure that they are protected so that your wishes will be met and your wealth will be passed on to future generations in the way that you would like.
Legal action
One of the most crucial reasons for protecting your assets is to guard against legal action being taken against you. The average professional is likely to be sued or at least face a legal claim at least once in his or her career and you do not need to be rich to be sued, especially if you work in a high-risk industry. Having insurances in place for such a scenario is not something which should be overlooked as you cannot assume it will never happen to you.
Taxation
Another factor to consider is how your wealth is taxed, and whether you can put measures in place which limit the amount of tax you are paying. If you or your family have substantial assets, it may be important to arrange your affairs in the most tax-efficient way to avoid paying inheritance tax, capital gains tax and income tax unnecessarily.
There are a range of insurances and protections which can help cover your family and give you the peace of mind that your loved ones will remain looked after. It is highly recommended to obtain expert advice on which type of wealth protection is right for your circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
