Coping With Old Age

Inheritance Tax Planning

You have worked hard all your life and now have a nice house, a decent pension, some investments and savings in the bank. If it’s worth more than £325,000 (Nil Rate Band 2014/15) unless you do some planning, 40% of anything above this figure will go to the government? Did you expect that?

There are actually lots of legal ways to reduce this which can include making small annual payments within certain limits, giving larger gifts away and surviving seven years (potentially exempt transfers - PETS), using spousal allowances, tax schemes or simply taking out some life assurance written under an appropriate trust to fund the liability therefore relieving your family of the burden.

This isn’t something to do in the future, if your estate is above the threshold and you can afford to do something about it then don’t wait - act now. We think that the richest people in country tend to pay the least taxes and that is because they plan well and plan in advance. You don’t necessarily need to spend a lot to sort this out.

Long Term Care

You may always have been independent but there could come a time when you just don’t want to keep looking after yourself. You may suffer from ill-health or mental deterioration or you may need help in the home or need to move into a retirement or care home.

The state will help in certain circumstances but this is dependent upon assessing your position and if your primary need is healthcare then you should get a lot of help. If it is social care you need you will probably have to pay for some of this and may have to take out a deferred payment agreement against your property to cover the costs so forward planning is essential.

There are ways of releasing equity from your property to help you now whilst still allowing you to live in the same house for your lifetime. You need to understand the implications of this, whether you have to pay interest, what happens on your death, if there are any hidden catches and whether you might be better off just downsizing.

Equity Release

No cash but a big house with no mortgage? Want to give yourself an income, enjoy some holidays, treat the grandkids or just pay for things you have been struggling with?

There are ways of releasing equity from your property to help you now whilst still allowing you to live in the same house for your lifetime. You need to understand the implications of this, whether you have to pay interest, what happens on your death, if there are any hidden catches and whether you might be better off just downsizing. Equity release is a lifetime mortgage. To understand the features and risks ask for a personalised illustration.

Your family may also want to be involved in these decisions and we can deal with you all via Skype, meaning that wherever they are they can join in the conversation – providing that is what you want.

Key fact:
If you’re moving into a care home and have more than £23,250 in savings or assets (£23,750 in Wales and £25,250 in Scotland), you’ll usually have to pay all of the care home fees. This threshold includes your property unless your partner or another dependent still lives there.

“The Financial Conduct Authority does not regulate Taxation and Trust advice, certain aspects of Long Term Care & Mortgages/Equity Release.”

Do you have enough protection
for
your family