The Importance of a Wealth Review

A periodic wealth review is an essential step in achieving financial optimisation, ensuring tax efficiency, and aligning your financial strategy with your long-term goals.

A wealth review will help you, and your various professional advisers, to identify the following:

• Suitability of Wealth Structure  – The review assesses the current structure of your wealth to determine if it remains suitable for you and your family. We analyze factors such as changing goals, evolving tax regulations, and shifting family dynamics to ensure that the structure aligns with your objectives and maximises tax efficiency.
• Income and Gains Analysis – We examine your income and gains across various assets to gain a comprehensive understanding of your financial position. This analysis helps in identifying potential tax-saving opportunities and optimising your overall financial strategy.
• Asset Value Fluctuations – Monitoring the growth or decline in the value of your assets is crucial for informed decision-making. We track and analyse these fluctuations, enabling you to make adjustments or capitalise on favorable market conditions effectively.
• Asset Accessibility – It is essential to assess the accessibility of your assets. By differentiating between tied-up assets and those readily accessible, we ensure that you have the necessary liquidity to support your financial needs and achieve your goals without compromising income or capital.
• Estate Planning and Inheritance Considerations – The wealth review process includes a thorough evaluation of how your assets will be transferred to your heirs upon your demise. We analyse the implications and potential tax consequences to help you create an effective estate plan that aligns with your wishes and minimises any undue burden to your beneficiaries.
• Tax-Efficient Asset Transfers – Identifying assets that can be sold or gifted in a tax-efficient manner, while still maintaining access to income and capital, is a critical aspect of the review. We work with you to explore strategies that optimize tax benefits without sacrificing financial security.

This clarity then allows you and your advisers to optimise your position and with this level of detailed understanding of the structure of your wealth, you will be able to make informed decisions.

In the short term, you will be able to manage your finances with greater precision, reducing taxes and assisting you in managing investments. For example, you will have the information available to allow you to:

• Determine the best places to fund ongoing expenditures and gifts.
• Carry out tax planning to minimise tax liabilities in the context of your financial goals – for example, consider whether it is appropriate to move to capital growth shares rather than income-generating funds.
• Decide whether new opportunities are in line with your overall financial goals.
• Know how future investments or spending can best be made.

In the longer term, monitoring your wealth opens opportunities to better plan for your future e.g.:

• Making sure you will have enough in your later years
• Better succession planning for your family by having difficult conversations early
• Identify and address any issues that may arise upon your passing

Our dedicated team of experts is committed to guiding you through the complexities of tax planning, succession planning, and working with other professionals to preserve your estate. We provide personalised advice and develop tailored strategies to align with your goals, values, and aspirations.

If you would like more information on this, please contact Krista Woodman at krista.woodman@ballardsllp.com or Tamara Shaw at tamara.shaw@ballardsllp.com