Future planning for peace of mind

Are you prepared for your future? MAS Member and succession law specialist Greg Ambler shares advice on planning for potential relationship conflicts, declining health and death, and why these decisions don’t need to be daunting. 

Some of you might be familiar with the 2018 indie hit from The Beths, “Future Me Hates Me”. In it, the singer acknowledges the very real possibility of future turmoil and loss, but also makes the very human decision to do nothing about it, delegating that responsibility to their future self. 

We all know that making thoughtful plans to prepare for the future can save us time, expense and stress. We stock the fridge, knowing that we will soon be hungry; we reluctantly go to the dentist, with the desire to maintain a mouthful of teeth; we insure against problems that may or may not befall us. 

However, there are some decisions that we are likely to delay or avoid, no matter how much ease they might bring to our lives. This avoidance is particularly common when it comes to planning for our relationships, possible decline in health, and eventual death. 

Why are people unwilling to make plans about their personal lives and death? 

Solicitors who practice in this field of the law regularly encounter reluctance from clients to commit these types of decisions to writing. While there is no one reason for this, some of the following reactions are commonly observed: 

• Discomfort with mortality, or the contemplation that we might one day decline in health, or that a significant relationship might fail. 
• Difficulty in making momentous decisions about the future. 
• Preconceptions or mistaken beliefs about the need for such planning. 
• Previous personal experiences (for example, the estate of a family member) that may colour a person’s understanding. 
• Concerns about cost or complexity. 
• Failure to consider the needs of others, such as natural beneficiaries. 

Why might ‘future you’ thank you for making these decisions now? 

1. Relationship planning 

While difficult to discuss, particularly during the first blush of romance, having a legal document that classifies the property brought into a relationship is intended to achieve certainty and fairness. Negotiating its terms can provide an opportunity for the people in the relationship to discuss possible or hypothetical situations.  

Having an agreement in place can, in the event of relationship breakdown or death, provide a clear and systematic structure to follow, and can avoid the need for ongoing conflict and mediation. A document that might be interpreted as a lack of trust or confidence can instead be seen as a practical and mature way to reduce future conflict. 

2. Planning for decline 

Preparing for possible physical or mental decline is important for any adult to consider. Unfortunately, we have little control over our personal health, and certain medical events can occur that can irreversibly change our circumstances. 

To plan for this, a common step is to delegate to another person your ability to make decisions (under an enduring power of attorney). Delegating decision-making is a significant transfer of power, so appointing a person you trust to act in your best interests, in relation to both your property and your welfare, is essential. As these appointments need to be made with a satisfactory level of capacity, addressing this task earlier rather than later is advisable, to avoid a situation where you are left without a person to speak on your behalf, or the need for a court-appointed delegate.  

Another common step is to record your wishes about the medical treatment you would want (or not want) in the event you become unwell. Putting in place an advance care plan gives you control over how you are cared for and treated when you may not be able to speak for yourself (for example, during a period of mental distress, or in the event you are in a coma). 

3. Planning for death 

The decision to plan for your death can be a tough one. But unlike possible relationship breakdown or incapacity, death is a certainty, and should therefore be given some thought, however difficult or morbid this might feel.  

A common struggle in putting together a will is making decisions that might impact well into the future. Given circumstances frequently change, it can be useful to instead consider your present situation, knowing that the will can be updated to reflect changes in your life.  

Given that death is unpredictable (but certain), having a will in place early in your life can: 

• Provide certainty to your descendants about your wishes, for example, the nature of your funeral, the distribution of your belongings, and avoid conflict. 
• Avoid the need for legal proceedings that would need to be undertaken if you died intestate (without a will). 
• Ensure your surviving partner is provided for adequately, which, in the absence of a will, can be very limited. 
• Allow you to provide security for your dependants, for example, by appointing a guardian and making financial provision for your dependants’ ongoing care, or for your beloved pets. 
• Enable continuity, for example, the transfer of power to keep a business running that you are otherwise responsible for. 
• Provide certainty for other assets, for example, by enabling you to transfer powers you hold in relation to trusts. 
• Reduce the risk that your will could be overturned on the basis that you lacked capacity to make one, or were vulnerable to undue influence. 

Final thoughts on future planning 

Avoiding planning for your personal life and death is common and understandable. However, failing to have adequate plans in place can bring stress, conflict and expense that far exceed the discomfort in confronting these decisions. Consider doing a favour to ‘future you’, your family and those who care for you by putting careful plans in place now.  

Life insurance is a tool available to you to protect or assist your family or loved ones in the event of your death. MAS can help you ensure you have adequate life insurance in place and ensure that the ownership structure is relevant and up to date with your current circumstances. If you are planning your estate or considering doing so, reach out to your MAS Adviser to discuss how life insurance can play a part in this process. 

Backstops for businesses 

Just as these matters are important for us to consider as individuals, they are also critical for business owners to contemplate and put the appropriate measures in place.  

MAS Head of Product (Life), Phil Belcher, explains, “Typically, businesses have insurance to cover them against material damage in case of events like fire or natural disasters, as well as liability insurance to protect against legal claims. However, fewer of them insure the very people who drive the business, or plan for what will happen if they die or suffer permanent disability.”  

This is when MAS Business Life Plan kicks in. It can fund your shareholder agreement and protect your business against the impacts of unexpected events, such as the sudden loss of a key person, ensuring that your business remains resilient and in your control, while continuing to operate. 

Expert advice for practice owners 

If you own or manage a practice, our MAS HealthyPractice online business support service can also provide you guidance on succession planning. This subscription-based service provides information and templates on all areas of business risk management and compliance, ownership, employment and practice management. To find out more about our HealthyPractice customised resources and expert advice visit the link above or call the HealthyPractice team on 0800 800 627.