We always provide a full review for our clients which often touch upon how you are protecting your mortgage. The pattern we are seeing is that many of you have got life cover in place but because it was provided from either their bank or a previous source it hasn’t been setup in perhaps the most suitable way. What do we recommend? Well in most circumstances we recommend you put your policy into trust. Why? Well here are two major benefits
1, Quicker payment of claims.
If someone dies and their plan is not in a trust, their representatives will have to obtain Grant of Representation before they can deal with the plan. This can take several months.
2, The plan proceeds may be free of inheritance tax.
At the moment inheritance tax is payable at 40% on any part of an estate valued over £325,000 (2009/2010). But you can use a trust to gift some or all of the benefits on the plan to other people. The gifted benefits would no longer be part of your client’s estate if they die, which means these benefits would not be subject to inheritance tax.
Our advisers can review your current payments and make sure it is setup with you the property investor in mind.
Call one of our advisors today for more information on any of these deals 01424 205 373 ref PropertyHawk for No Fees Special Deal