Don’t miss out on creating a legacy for your loved ones - financial expert

A Sutton Coldfield-based financial expert is urging people to consider how their long-term financial plan could benefit not only themselves but provide a life-changing legacy for their loved ones’ futures.

Mike Jordan (pictured) is the founder of Jordan Financial Management, which has been helping clients across the West Midlands manage their finances for more than 25 years.

He says that while many people take time to create a suitable financial plan for their future, they don’t always ensure it benefits loved ones.

Mike said: “You might think of your financial plan as being a way to help you reach your life goals. But it could benefit more than just you.

“While a financial plan focuses on your own goals, you can also include ways to create a legacy for your loved ones. It could mean your wealth provides long-term financial security to your children, grandchildren, and others who are important to you.”

One way to secure your family’s financial future is planning for how your assets will be distributed when you die.

According to a Canada Life report, one in five Brits are delaying major life plans until they receive an inheritance – showing just how life-changing it can be.

Mike said: “The assets you leave behind might help loved ones achieve important milestones, such as buying a property, or mean they feel financially secure enough to invest for their own future. This can be life-changing for them.

“You can pass on your assets in different ways – a will is the simplest way, while others might consider using a trust to provide for vulnerable or younger family members, or to state how you’d like the assets to be used in the future.”

Crucially, he said a financial plan can help you pass on your assets in a tax-efficient way.

Inheritance Tax (IHT) means that if the entire value of your estate exceeds the nil-rate band, which is £325,000 in 2024/25, your estate could be liable for IHT.

Mike said: “The standard tax rate of IHT is 40 per cent, so it can significantly reduce how much you pass on to your loved ones. Government figures reported that IHT receipts for April to September 2024 reached £4.3 billion – £0.4 billion higher than the same period last year. 

“There are often steps you can take to reduce a potential IHT bill if you’re proactive. If you’d like to learn what steps you may take, please get in touch!”

But Mike said you don’t have to wait until you pass away to help secure your loved ones’ financial future.

Giving away assets in your lifetime is becoming an increasingly popular way to support your loved ones, with data from HMRC revealing a 48 per cent rise in the number of families choosing to distribute some of their wealth before passing away when compared to 10 years ago.

Potential gifts include providing a deposit to help a loved one get on the property ladder, covering large one-off payments, or helping them pay a mortgage.

Mike said: “A well-timed financial gift could have a positive effect on your family’s life and mean they’re more secure over the long term.

“Concern about how a gift would affect your financial security might hold you back from lending support when you want to, which is why planning can be helpful.

“A financial plan may demonstrate the long-term effect gifting could have, so you can decide if it’s the right choice for you and proceed with confidence.”

As with distributing assets via a will, passing on assets during your lifetime can also be made more tax-efficient.

Mike advises: “If you want to potentially give your family a long-term financial boost, you could deposit money into their Stocks and Shares ISA. In 2024/25, individuals can add up to £20,000 to tax-efficient ISAs.

“Investments held in an ISA aren’t liable for Capital Gains Tax, so it could help your gift go further than if they invested your gift outside of an ISA.

“Speaking to your loved one could help you understand their goals and identify ways you may offer tax-efficient support that suits both you and them – and our team is here to support you in crafting your legacy.”