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Whether it’s an heirloom that’s been passed down from generation to generation or a new car you just purchased, everyone has different things that they value. As such, it’s no surprise that many are eager to protect their belongings and safeguard them until they can pass them on to future generations.
Asset protection is very important and enables you to keep your hard-earned assets safe and away from any potential risks.
However, not everyone knows how to go about guarding their assets. That’s why, in this article, we’ll explore 4 effective measures you can implement to prevent your assets from being taken away against your will or exploited by external forces.
Let’s begin!
Contents
Effective measures to implement to prevent your assets
1) Creating an OPG Lasting Power of Attorney
An OPG Lasting Power of Attorney (LPA) is a popular and flexible tool that allows you to protect your assets. There are many different ways to set up an OPG LPA online as well as offline. As such, you need to carefully evaluate the characteristics of each type against your objectives to find which one best suits your needs.
For example, you may want to ensure a loved one receives your assets if you become unable to manage them yourself. An LPA can help in this situation.
However, when it comes to LPAs, the rules that apply to different types of LPAs can appear rather complex. If you want to set up an LPA that targets your exact requirements, you ought to consider seeking advice from a legal professional to help make your journey much smoother.
2) Investing in Cybersecurity
When thinking about asset protection, many forget the importance of protecting their digital assets as well. Digital assets are assets that you own online. For example, your intellectual property, financial data, personal information and digital currencies.
With the internet being as complex as it is, your data and digital assets are under threat 24/7. The digital landscape is filled with dangers ranging from data breaches to ransomware and malicious hacking attempts. With cyber criminals and hackers constantly evolving, you need to stay vigilant if you want to protect your digital assets against any threats.
To combat this issue and guard your digital assets in such a volatile environment, you need to level up your cybersecurity. Fortunately, by leveraging data security measures and cyber security essentials, like encryption, setting up strong passwords and using firewalls and antiviruses, you too can protect your digital assets.
Implementing such tools and practices can help you effectively guard your digital assets against cyber threats and preserve the integrity of your personal data.
3) Giving Them Away as Gifts
Did you know that gifts up to a certain value can be made exempt from Inheritance Tax? Every year you’re allowed to give away up to £3,000 in assets or money as a gift.
As long as you do not exceed the £3,000 limit, you have the complete authority to decide who you would like to gift. Additionally, if you have not completely utilised the previous year’s gift allowance, you can choose to carry it forward to the next year.
Similarly, gifts registered to charities can also be made completely free from Inheritance Tax. Through this method, you can reduce the size of your estate to within the Inheritance Tax threshold.
Furthermore, if 10% or more of your total estate is gifted to charity, it also reduces the Inheritance Tax payable on your remaining estate from 40% to 36%. So start giving gifts to your loved ones and make the most out of your assets.
4) Making a Will
A will is a very easy-to-set-up and essential legal document that allows you to clearly illustrate what would happen in the event of your passing. Through your will, you can detail how you would like your assets to be distributed to your near and dear ones.
You can also use your will to appoint guardians to care for your children, leave donations to charity and pass on your treasured belongings to your family.
Alongside helping you protect your assets and providing your family with financial security, a will can also help you minimise tax liability. This allows you to keep as much of your wealth as possible within your own family to put towards their futures.
When it comes to making a will, although a bit emotionally daunting, it’s best to make one as soon as you can. It is also equally important that you keep updating it to account for significant changes and milestones in your life. For example, buying a home, getting married, having a child, and so on.
By making a will and keeping it updated, you can make sure your wishes are fulfilled and your family and loved ones are well cared for many years.
To Sum Up
There are various things you can do to protect your assets and safeguard the future of your family and loved ones.
By setting up trusts and wills and implementing strong cybersecurity measures, you can plan for the future while ensuring that your personal details and private information stay secure along the way.
As long as you actively work towards your goals, there is no reason you won’t be able to protect your assets for many years to come.
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