January 2025 Newsletter | Cylchlythyr Misol Ionawr 2025
The start of a New Year can bring a fresh perspective to life, including your financial affairs. Here are some matters you may wish to tick off your financial 'to do list' at the start of 2025:
- If you do not have an up to date will, your estate will be divided in accordance with the laws of intestacy which basically follows the bloodline. Unmarried partners may be left much poorer whilst family members will benefit whether you want them to or not. Your family will be left with a mess to sort out, which is not a great legacy.
Also, if your will was written before 2010 and has a discretionary or nil rate band trust this needs to be urgently reviewed or the estate may end up with a substantially higher Inheritance Tax bill. - If you have significant assets, you need to plan and at least be aware of your Inheritance Tax position. The upcoming changes to inheritance tax on pensions (from April 2027) and agricultural and business assets (from April 2026) may impact your intended plan of action.
Huw is available for detailed reviews or check with your existing solicitor/accountant. - Another set of important documents to arrange, especially for individuals who are at, or over pensionable age, are financial and health power of attorneys which allow for your family / close friends to look after your affairs if you become incapacitated.
- Have you made a list of your financial assets and do your most trusted relatives / friends know where the list is kept? In the unfortunate event of early death / incapacity this will at least ensure that all of your assets are available to your estate.
- What about your non-financial assets, such as your smartphone (including photos, messages and device backups)? If you have an Apple device, Apple will provide access if you add a Legacy Contact. This individual can then access the data stored in your Apple account after your death. Definitely one for the “to do list”.
- Check your National Insurance record and your State Pension forecast on the Gov.uk website to correct any errors now, before you retire.
The deadline for voluntary NI payments for missing tax years from April 2006 to April 2016 has been set at 5 April 2025. - Are you receiving an acceptable amount of interest on your savings accounts? No excuses for leaving sums in low paying accounts given current Bank of England base rates.
- Are you paying for many different types of insurance? You may have a comprehensive buildings and contents home insurance policy, but also took out insurance when you bought a product such as a phone or household appliance. Review your home insurance policy to ensure you are avoiding dual-insurance but also have sufficient cover for your needs.
Happy New Year to you all / Blwyddyn Newydd Dda i chi gyd!
