Don’t Let the ‘Credit Crunch’ Lead to ‘Financial Fallout’

I don’t know if you have heard, but the country is going through some economic turbulence at the moment. Mortgages, interest rates, food prices and fuel (not to mention column inches, panic and anxiety) are all on the rise and often to be found in the same breath of TV presenters and journalists recycling the same horror stories of the present, imminent or future (depending on who you listen to) ‘Credit Crunch.’

Alright, I am being flippant and as the Senior Partner of a law firm that employs over 140 staff in the area, a solicitor to a great number of personal clients who I have looked after for many years, a husband and a father I am as concerned about the future economic climate as anyone else, but I am determined to keep a calm, rational mind when evaluating the situation.

I know that during a time when you are having to think about the cost of the food you put on the table and whether taking the bus to work would save you money when compared to the cost using your car, my talking about securing your financial future may seem, at best, insensitive and, at worst, a cruel joke, but even if we are heading for a severe economic downturn, it will pass. The financial market is like any other - cyclical.

In my area of expertise, Wills & Probate, I have often had to bite the bullet and tell clients that people still pass away during a recession. I understand that an estate or savings being left to loved ones may temporarily not be worth as much as they have been, but you must remember they are still worth something - they still have value.

In times of economic downturn, a Government is more anxious than ever to get their hands on any unclaimed cash they can, so whatever you can leave to your spouse, children or other benefactor to help them through uncertain times must be protected and managed correctly.

I am going to be completely honest with you and say that the average standard single Will costs about £115 plus VAT and a double Will for a couple is around £195 plus VAT. I understand that is a substantial amount of money (or a couple of tanks of petrol at the moment) but too many people in times of economic uncertainty see this cost as a luxury.

I know it is my job, but as I have been asked to write for a Financial page, all I can honestly say to you is that at times like, these more than ever, managing your personal wealth in a legally drawn up document is more of a necessity than when an economy is thriving.

I suppose I am now wondering into the scaremongering and ‘doom and gloom’ I accused the media of at the start of this column and that is not my intention. I neither want to be a Prophet of Doom nor be seen to ignore the big problems that face us. What I want to say is that, in order to get through this difficult time, life (and death) goes on and we must try and keep ‘business as usual’ as much as we possibly can.

You may feel that your finances or not worthy of care at the moment, but I assure you it is very much the opposite. I do not believe you should put off until tomorrow what you should really be doing now