Asset Management services can be provided to a range of clients, from large corporations down to single individuals however these single individuals will generally be of a high net worth. This is because asset management services are costly. In terms of asset management for the elderly, there are a number of services you may wish to make use of. Commonly provided financial services are: tax planning (inheritance tax), management of assets to cover care home costs, equity release, Self Invested Personal Pensions (SIPPs), investments and more.

Tax Planning

If you start thinking about inheritance tax earlier on you can ensure you maximise your estate’s worth and pay the minimum amount of inheritance tax possible. You can reduce your inheritance tax bill via gifting of assets and engaging in charitable giving. However, gifting is not as simple as it sounds, you may still have to pay inheritance tax on your home if you gift your house to a relative whilst you are still alive. If you have set up a Trust Fund to gift money to your children this may also be subject to inheritance tax. Tax relief is also available for business assets and those who own agricultural land or buildings. To examine the ins and outs of inheritance tax you should discuss it in full with a legal professional. Lawyers will be able to help you gift money and assets in an acceptable fashion.

Care Home Costs

Many people pay the incorrect contributions to their Care Home Fees, it is possible to challenge the fees you have paid and potentially claim for a refund from your local Primary Care Trust. However, if you do have to pay care home fees it is good practice to discuss your finances with someone before you reach the point where you begin paying for your care. This will prevent you paying over the odds for your care in later life. By engaging in sensible asset management you could reduce the amount you have to contribute to your care or may be able to set up a fund to cover your care fees. Depending on your financial situation you will have different options, discuss the matter with an advisor as soon as possible.

Equity Release

For those over 55 who own property in the UK, equity release could be an option to free up some funds in later life. Lifetime mortgages and home reversion plans are two ways to release funds. However equity release does come with risks, you are running the risk of losing your home. Interest is added to the amount you owe if you take out a lifetime mortgage and you must think extremely carefully about the decision you may end up with a debt which is the same value as your home or even more. Also if you repay the amount early, rather than on your death, there may be a large early repayment charge.

Contact Us

Call us on 0800 142 2901 or fill in an online enquiry for a free initial consultation regarding the asset protection services we can provide you with here at Roskell Davies.

Share Article With: