'Where Your Treasure Is...': The Podcast where Faith and Finance Meet

S12 Ep8 Family Matters: Hybrid Families

In the final episode of this ‘Family Matters’ season, Simon and Bex discuss various financial matters that have particular relevance and significance for hybrid families.Some key points of interest covered in this episode include the following:Simon explains the nature of hybrid families, noting that because they can be complex, their financial arrangements and issues can also be quite complicated. [00:48]From the outset, it is important to acknowledge and appreciate the previous experiences, including those relating to financial matters, that each couple brings to a hybrid family. [03:39]An option that can be worth considering is a prenuptial agreement – or, indeed, a postnuptial agreement – as each of these creates a formal structure and clear expectations that can provide reassurance and safeguards for each member of a couple involved in creating a hybrid family. [06:00]As ever, communication is a vital skill, and Simon recommends being as proactive, deliberate and specific as possible when talking about money. [07:54]In response to a question from Bex, Simon explains that merging and distributing assets within a hybrid family can be complicated. He goes on to stress the importance of understanding the full nature of the choices that need to be made, and of discussing them openly and thoroughly. [08:46]On a practical note, wills [10:55] and expressions of wishes for pensions [12:11] are two key ways of specifying how wealth should be distributed in the event of a parent in a hybrid family dying. Again, it is important to understand fully the details and consequences of the arrangements being put in place.A major challenge can be to treat all members of a hybrid family fairly when dealing with financial matters. [14:20] Sometimes, situations can be complicated by the different spending capabilities and behaviour of the parents involved in a hybrid family. In such cases, Simon recommends being open, honest, balanced and sensitive when talking to children about the situation. [15:49]Prompted by Bex, Simon goes into further detail about how wills, trusts, pensions and expressions of wishes can be used to bring clarity and fulfilment of previously stated wishes when a relationship ends, for whatever reason. [17:35]When it comes to foster children, it is important to know that they do not have automatic rights to inherit in the way that biological or adopted children do. Therefore, specific provision has to be stated, recorded and formalised in situations where it is desired that a foster child will benefit financially. [20:40]When summing up, Simon comments that because the financial affairs of hybrid families are very often complex, it can be helpful to seek assistance from a financial adviser or planner. Very often, a first consultation can be free of charge and will provide the opportunity to explore whether or not it is likely to be genuinely helpful to take up that option. [22:29]After a short break, up next on the podcast will be a bonus episode; and if you feel that you would have something to contribute to such an episode in the future, please get in touch with us as we are always open to receiving fresh input. [24:23]In closing, Simon invites listeners to spread the word about the podcast by all means possible, including making friends listen to episodes on long journeys! [25:09]Suggestions or feedback arising from this episode can be sent via email to whereyourtreasureis@freerangepodcasting.co.uk while messages via Instagram should be directed to @whereyourtreasureispodcast.Our Instagram page will also provide you with additional content and features.This show has been brought to you by Free Range Podcasting.You can sign up to receive news and updates about this podcast by filling out the brief form to which you will be taken when clicking here: https://where-your-treasure-is.kit.com/13c7b5fec6

S12 Ep7 Family Matters: Dealing with Divorce

In the penultimate episode of this ‘Family Matters’ season, Simon and Bex discuss ways of dealing with some of the financial matters that can arise when couples divorce.Some key points of interest covered in this episode include the following:Simon comments that while he lived through a divorce as a child and feels that it is a very important topic to cover in the current ‘Family Matters’ season, he is not a financial specialist in that area. [01:27]In response to a question from Bex, Simon explains that this episode’s discussion will focus on financial issues associated with marriages and civil partnerships coming to an end; cohabiting couples have different rights under the law, which fall outside the scope of this episode. [02:43]The first financial step to take once a divorce is in process is to identify relevant assets. This can be quite a complex task, partly because it can comprise so many different elements and partly because it is not always a straightforward matter to understand and identify the exact nature and value of items such as pensions. [04:57]Another complicating factor is that it is not necessarily the case that every possible asset belonging to each member of the couple will be deemed to be available for sharing. [06:39] In that context, it can be important to understand the following terms: (i) matrimonial property – wealth that has been added during the relationship [07:59]; (ii) non-matrimonial property – assets that have been brought into the relationship [08:57]; (iii) matrimonialised property - resources that have been brought into the relationship and have then been deployed in some way during it. [09:42]The process of valuing assets during a divorce can be complex and contentious. It can be difficult to arrive at agreed valuations, with pensions posing a particular challenge because of the tax and timing factors that need to be taken into account. [10:46]Prompted by Bex, Simon suggests that it is good financial planning for assets in a relationship to be allocated, as far as possible, to each member of the couple on a fairly equal basis so that each of them can have access to an emergency fund, for example. That kind of approach can also help to provide the basis of a fair arrangement, should wealth need to be divided as part of a divorce settlement. [12:32]When it comes to splitting assets, it can often be hard to know how best to deal with a property. The situation with a house can be difficult, if it is not being sold, as it cannot simply be divided in half, and the process of deciding what kind of price to place on it is also not entirely straightforward. [15:01]Whether or not assets should be divided completely equally is a legal decision. [17:11]Because of tax considerations, pensions can be particularly complicated assets to distribute. [18:22] As part of a divorce, pensions can be allocated in one of three ways: (i) pension sharing [20:04]; pension offsetting [21:38]; (iii) pension attachment [22:51].Generally, offsetting is the approach taken to dividing investments, but it can be important to understand any taxation arrangements that apply so that fair and balanced arrangements can be made. [23:47]Finally, Simon suggests that a collaborative approach to divorce, as described on the resolution.org.uk website, can have definite benefits, as long as both parties are on board with the process. [26:17]The final episode of the ‘Family Matters’ season will explore some of the financial matters that can affect hybrid families. [27:42]Suggestions or feedback arising from this episode can be sent via email to whereyourtreasureis@freerangepodcasting.co.uk while messages via Instagram should be directed to @whereyourtreasureispodcast.Our Instagram page will also provide you with additional content and features.This show has been brought to you by Free Range Podcasting.You can sign up to receive news and updates about this podcast by filling out the brief form to which you will be taken when clicking here: https://where-your-treasure-is.kit.com/13c7b5fec6

S12 Ep6 Family Matters: Accident and Illness

In the sixth episode of this ‘Family Matters’ season, Simon and Bex discuss how best to deal with financial matters arising from accident and illness factors that can affect families.Some key points of interest covered in this episode include the following:Simon describes the aim of this episode as being to help us to consider our options in light of the potential financial implications of various accident and illness events that can affect us and our families. [00:57]Simon suggests that the first area to explore should be insurance because it provides a means of preparing ourselves financially, to some extent at least, for unexpected changes in our circumstances. [02:29] He goes on to explain that insurance is a way of allowing a number of people to share risks together in a manageable fashion in order to reduce the impact of events that would otherwise have a very detrimental effect upon their financial situations. [03:12]When we are trying to decide what kinds of insurance we should take out, Simon suggests that it is helpful to establish a hierarchy of priorities so that we take out insurance options that are relevant and appropriate for our circumstances. [05:38] Illness insurance might, for example, be more important for a single person to have, compared with life insurance. [06:55]Simon suggests that most insurance decisions are heavily influenced by our emotions and that it can therefore be helpful to adopt an overview of insurance that appreciates the peace of mind that it can provide rather than focusing on the fact that it can end up being an outlay of finances without any tangible return. [08:52]Simon explains that a power of attorney arrangement can be an invaluable provision to have made when significant illness and accident events occur. It can be used in normal life - for example, to give access to a bank account while a spouse is overseas. However, its greatest benefit comes from its use to transfer decision-making powers (relating to finances, property and medical treatment) when someone has lost mental capacity and is no longer able to manage their own affairs. [10:45]A spouse or adult child will often be selected for power of attorney responsibilities, but a friend or trusted adviser would also be an appropriate choice. [12:12]There is no default power of attorney arrangement that comes into force If no such provision has been made, and this can lead to upsetting and expensive consequences for individuals and families. Simon therefore urges listeners to put a power of attorney arrangement in place sooner rather than later. [12:51]A power of attorney can be arranged through a solicitor in Scotland; in England, this can now be completed online. [15:14]The need for long-term care – caused by accident, illness or old age – can also have significant, unforeseen financial consequences. Professional advice can often be very helpful in such circumstances. [16:49] In addition, good family communication is vital in this area, so Bex and Simon encourage listeners to be proactive in raising financial matters in a constructive manner with other family members. [18:57] Simon reiterates that point in his closing remarks. [20:32]Bex invites listeners to share comments and questions through the usual channels: whereyourtreasureis@freerangepodcasting.co.uk via email and @whereyourtreasureispodcast on Instagram. [21:22]Suggestions or feedback arising from this episode can be sent via email to whereyourtreasureis@freerangepodcasting.co.uk while messages via Instagram should be directed to @whereyourtreasureispodcast.Our Instagram page will also provide you with additional content and features.This show has been brought to you by Free Range Podcasting.You can sign up to receive news and updates about this podcast by filling out the brief form to which you will be taken when clicking here: https://where-your-treasure-is.kit.com/13c7b5fec6

S12 Ep5 Family Matters: Making Financial Preparations for Death

In the fifth episode of this ‘Family Matters’ season, Simon and Bex discuss ways in which we can prepare well financially for death.Some key points of interest covered in this episode include the following:Simon and Bex acknowledge that death can be a difficult topic to discuss but suggest that there are real benefits to be gained from talking about financial matters related to death in an open and honest manner. [00:34]In response to a question from Bex, Simon suggests that a key moment to start thinking about making preparations for death is when other people will be financially impacted by our passing. [03:49]The top priority when preparing our estate for death is to have a will drafted by a solicitor. Without that, things can become very messy and expensive. [05:41]Other preparations that can be very helpful include the following: lifetime cash flow modelling to predict future income and expenditure [09:15]; simplification and streamlining of bank accounts, pensions, investments etc. [09:53]; clear communication about what we have and where key information can be found [10:32]; updating details of our ‘financial footprint’ annually [11:47]; sharing accounts and transferring assets once it is clear that death may not be far away [12:20].Simon explains how a deed of variation can be a helpful tool that can allow beneficiaries of an estate to make changes to a will if they all agree to implement a new arrangement. [13:10]In connection with estate planning, it can be helpful to be aware that a will doesn’t include instructions regarding pensions [14:46] and that national laws can take priority on occasion, as is the case with the ‘prior rights’ of spouses and the legal rights of children in Scotland. [16:23]When it comes to the potentially complicated question of to whom should we give what when we die, Simon notes that there are many factors that may need to be taken into account. Ultimately, the decision is ours to make, but good communication will always be a vital part of the process. [17:35]Simon shares some thoughts on how wealth can be passed on to grandchildren, if desired. The use of a trust can be an appropriate and cost-effective way to do this, as inheritance tax can be avoided and the trustees can ensure that the right amount of money is passed on at the right time and in an appropriate manner. [21:09]Simon rounds off his comments by suggesting that if we can be well prepared for death, we will manage our financial arrangements in a manner that, potentially, will help to soften the blow of our death for our loved ones. [23:31]Next week’s episode will focus on dealing with financial matters related to accident and/or illness that can affect families. [23:55]Suggestions or feedback arising from this episode can be sent via email to whereyourtreasureis@freerangepodcasting.co.uk while messages via Instagram should be directed to @whereyourtreasureispodcast.Our Instagram page will also provide you with additional content and features.This show has been brought to you by Free Range Podcasting.You can sign up to receive news and updates about this podcast by filling out the brief form to which you will be taken when clicking here: https://where-your-treasure-is.kit.com/13c7b5fec6

S12 Ep4 Family Matters: Wider Family

In the fourth episode of this ‘Family Matters’ season, Simon and Bex discuss various financial matters that can arise from our interactions with members of our wider family.Some key points of interest covered in this episode include the following:Simon and Bex introduce the episode by explaining what they mean by ‘wider family’ [00:50] before going on to explain how their own circumstances have influenced their thoughts on the extent to which they might feel prompted, or not, to engage financially with members of their respective wider families. [02:46] and [03:34]A sensible starting point, as so often with financial planning, is to know the nature and extent of your own resources. [04:05]It can also be sensible and helpful to try to establish some kind of appropriate ‘hierarchy of needs’ when thinking about our wider family relationships, but a great deal of openness, honesty and thoughtfulness is likely to be necessary to achieve that outcome. [05:02] It can, however, be well worth going through that process if it leads to money being used as a tool for the benefit of others. [06:33]Another approach that can be useful when trying to decide how generous we can afford to be to wider family is to establish criteria and responses that can assist with the decision-making process – these could include, for example, the option of giving time, skills or practical support rather than money. [08:08]In response to a question from Bex, Simon shares some suggestions about how to communicate honestly, clearly and well in wider family contexts that can often be emotionally charged as a result of money being the subject under discussion. [12:02]Simon also draws attention to third parties which can provide financial assistance, information, advice and support: the Government (national and local), charities and the local church. [16:21]In his concluding remarks, Simon encourages us to be alert to the needs of those who do not have family or wider family available to support them. [19:55]The next episode, which will be published after a short mid-season break, will focus on dealing with death-related financial matters that can affect families. [22:13]Suggestions or feedback arising from this episode can be sent via email to whereyourtreasureis@freerangepodcasting.co.uk while messages via Instagram should be directed to @whereyourtreasureispodcast.Our Instagram page will also provide you with additional content and features.This show has been brought to you by Free Range Podcasting.You can sign up to receive news and updates about this podcast by filling out the brief form to which you will be taken when clicking here: https://where-your-treasure-is.kit.com/13c7b5fec6