How safe is your wealth?
Like so many professions, being in the superyacht industry is all about working hard and saving as much as you can.
However, unlike other jobs, the potential to accumulate wealth over a relatively short period of time is huge.
Smart crew take full advantage of good salaries, little or no income tax and limited overheads, to establish savings plans, investment portfolios and make shrewd property investments.
The yachting lifestyle, along with the financial opportunities on offer, will doubtless leave your friends onshore green with envy, but have you considered how safe your wealth is?
At the end of the day none of us know what is around the next corner, so if you don’t take steps to protect your hard-earned wealth, you are running the risk of it slipping through your fingers.
I’m always amazed by the number of people, many with significant assets, who don’t protect their wealth by making sure it is organised in such a way that ensures the people who you choose receive the maximum amount possible on your death.
Here are a few things yo
u really should consider:
- Inheritance tax – If you are domiciled in the UK you will be liable to pay UK Inheritance Tax (IHT). Being domiciled is different from where you are resident as it is based on where you were born, if you have assets in that location and where your father was born.
The good news is that it is possible to protect your estate by establishing tax efficient financial structures.
For example, setting up a trust for property ownership, death in service benefits, life insurance and pension lump sum payments, can enable you to provide for loved ones while minimising the amount of IHT that your estate will be liable for.
It is worth noting being married or in a civil partnership puts you at a significant advantage because, if planned properly, your £325,000 IHT-free allowance will be passed to your spouse or partner on your death, making their IHT free amount £650,000.
- Make a will – I know this sounds like something only old people do, but you really would be crazy not to. Try to think of it as an insurance policy. Without it your estate will be subject to intestacy rules should anything happen to you and there is every chance that your assets will not go to the people you would have chosen.
This can have horrific consequences, leaving loved ones not provided for and causing them a great deal of stress and upset.
- Lasting Powers of Attorney – Again, you may think you’re indestructible, but what if something unexpected did happen that left you unable to make decisions for yourself, for example, as a result of an accident or illness?
If you haven’t appointed someone to look after your financial affairs and make decisions about your care and wellbeing, you are unwittingly creating huge problems when it comes to managing your assets and your care.
My advice is always to treat estate protection in the same way you would approach motor, home or life insurance. You hope you won’t need it (at least not for a very long time!), but if something unexpected does happen, it always pays to have a plan in place.
It is so important to protect all that you’ve worked hard to achieve and to give your loved ones peace of mind.
You can join CrewFO via the following link: https://www.crewfo.com/how-can-we-help/?level=5 or if you are already a member and would like to talk to our Legal and Wealth Management teams please email email@example.com