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The more people I speak to, the more I'm convinced that the majority of investors have not set up their existing life cover in the most efficient way.
In many cases it could mean GB walks away with 40% of it.
The answer is really simple - consider putting your life cover in trust.
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.
3. 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.
If you do have life cover remember this - every month a payment is coming out of your bank account - make sure you it counts!
01424 205 373 ref PropertyHawk for No Fees Special Deal
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1 comment:
Wondering what your thoughts are on HMRC's clarification that the self employed can offset their mortgage interest against their profit?
Surely this would then mean not paying off one's mortgage is beneficial in the short term, but given the CGT benefits of one's principal residence does it matter?
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