Tuesday 28 June 2016

THE NEW STATE PENSION


From the 6th of April 2016 the new State Pension came into effect. In order to make it as fair as possible, those who have been building up State Pension benefits before that date will have a
“Foundation Amount” calculated. This basically represents the value of the State Pension benefits
built up under the old rules. To that will be added the benefit built up from the 6th of April 2016 up to their normal State Retirement Age.


As would be expected, there are some winners and some losers in this change-over. The best thing to
do is to request a State Pension Forecast – www.gov.uk/state-pension-statement. Their telephone
number is 0345 3000168. This will confirm what your State Retirement Age is and also whether you have any “holes” in your National Insurance payment record which you may be able to fill.



Monday 13 June 2016

UTILISING THE VALUE IN YOUR HOUSE – EQUITY RELEASE!

For those aged 55 and over it is possible to access some of the value in your property. There are no income requirements and the older you are, the more you can take out. The funds taken can be used for any purpose. There are three general approaches to Equity Release:

1) making interest-only payments indefinitely (Interest Only);
2) borrowing without having to make any repayments at all until the property is sold (Lifetime Mortgage);
3) trading ownership of the property for a lump sum and the right to life-long tenancy of the property (Home Reversion Plan).




Friday 3 June 2016

LIFE ASSURANCE AND PUTTING THINGS IN ORDER

Unfortunately we do not live forever. To avoid leaving behind a confusion that family or friends have to sort out, there are some basic actions that should be taken:


1. Write to any company that you have a pension with and notify them of who you want the money to go to on your death. This is in addition to having a will. By letting the pension company have written notification, that money can be made available to the beneficiary(s) immediately. It does not have to wait for Grant of Probate, i.e. when your whole estate is valued up and your will reviewed. Such a notification would keep the pension funds from being included in your estate and possibly being subject to Inheritance Tax when you die.


2. Make sure you have an up-to-date will. These are not expensive.


3. In the event of illness or something else happening that affects your mental capacity – either for a short time or a long time – it is a good idea to look into doing a Lasting Power of Attorney. This is a written document that appoints someone to make decisions about your affairs in case you are not capable of doing so. There are two parts to this – one to deal with health issues and the other to deal with property and finance. In setting up a Lasting Power of Attorney you can do one or both parts. This is not inexpensive, but what it might save you in the long run might well be far more than the cost of getting one of these done.


4. Review your life assurance needs. If you have people who depend on you financially – whether a spouse, or children or business associates – having adequate life assurance is a good idea. Basic life assurance is generally inexpensive. We can provide quotes very quickly. Just give us a ring.