TIP OF THE WEEK 1:

40% of your life insurance claim could be at risk.

Over the last few months we have helped many of you property investors to get the right cover in place to protect your buy to let properties. We look at your current circumstances from a property investor's viewpoint and in almost every case we have found ways to improve your cover.

What does this really mean?

Well, if you died today do you have things in place to cover your portfolio?
Would your partner struggle to remortgage your properties should the lenders call the loan in?
Are you paying money every month from a standing order and not even know what it covers you for?
In most cases 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 it counts!

As always, call one of our advisors today for more information on any of these deals
Tel 01424 205 373 ref PropertyHawk