August 24, 2017
A good financial advisor can help you through difficult financial times as well as making sure you make the more suitable financial choices for your future. However, it can be hard to determine whether a situation seems worthy enough to seek the help of financial planning.
With the world of finance constantly changing, there are new opportunities and rules that will help you save money like increases in ISA limits, meaning you can save more money tax-free. Other changes to inheritance tax mean you will be able to leave more money to your children and grandchildren for the future.
While this gives many new, exciting opportunities to save money, it also gives more chances for making mistakes which could be costly and irreversible for your finances. This is the perfect reason to get in touch with a financial advisor and start discussing financial planning.
So in what circumstances should you get financial advice?
- Pensions – The pension market is extremely difficult to comprehend and so the chances of you making a mistake is huge. Your pension is a huge asset to your future finances and therefore needs to be planned very carefully in order to make sure you can retire while maintaining the lifestyle you are used to. So whether you’re just starting out in your working life, or you’re getting close to retirement age and have accumulated a number of company pensions along the way, a financial advisor can help you manage your assets to make sure they meet your objectives when the time comes.
- Investments – Say you have received a lump sum of inheritance, or are planning on generating some income prior to your retirement, you will need a good financial advisor to question you about your goals and ambitions. They will be able to provide you with the relevant solutions to achieving these goals. They should also inform you of the risks associated to making the investment and work with you to create an investment package should you need it.
- Life Insurance – Most life insurance products are relatively easy to understand, however there are some that are complicated. If your particular circumstances and finances are not as straightforward as you would hope, you should get advice from an advisor. They will ask you about your goals and find out what your financial situation is like. Once the advisor knows about your situation, they will be able to guide you to the right solution.
- Tax Planning – For high earners, tax planning is invaluable in minimizing the impact of Inheritance Tax, dealing with tax on a second property or helping self-employed to manage their taxes.
Are you in need of a financial advisor? The team at Bespoke Support Network have a database of thousands of trusted financial advisors throughout the South East. With experts providing business advice Essex to qualified will writers, we have professionals for every aspect of individual and business finance and legal practice.
April 1, 2017
We often find that people disregard the fact that living together and being part of a marriage can leave you in very different situations should your partner pass away. Generally speaking, your legal rights as a partner are fewer then if you were to be married to them. It’s important to know where you stand and how you will be affected should your partner die. Below is a short guide highlighting your rights and where you would stand as a partner rather than spouse should the unthinkable ever occur.
There is no widely accepted term that is used across the board for two people who are living together but it generally means that you’re living as a married couple without actually being married. If needs be you can formalise parts of your relationship status by drawing up a legal document named a ‘cohabitation contract’ or ‘living together agreement.’ This simply outlines the rights each partner has towards each other, however it isn’t always clear whether these living together agreements are legally enforceable.
In the event of one partner’s death, the surviving partner would not automatically inherit anything unless the property was owned jointly. Due to this, if you are part of an unmarried couple you will need to make sure you both have written or updated your wills accordingly. This is the only way you can ensure that the other partner inherits anything at all.
If your partner didn’t leave enough money in their will for you to survive on, it is possible for you to go to court claiming from the estate. This is because those who are unmarried that inherit money or property from a partner pay inheritance tax unlike married couples.
If your partner was to leave debts behind you wouldn’t be liable for any those that aren’t in your name, however if you have joint debts, you may be responsible for those. For example if you owe council tax, both you and your partner will be accountable for it. This works in the same way should you be acting as a guarantor, again you will be held legally responsible for paying any debt owed.
It’s Important to take into account the effect that your partners death could have on you and your finances, especially if you are living together. We often recommend using budgets to help keep an eye on your expenses and bills so that you don’t run into financial difficulty.
If your partner has recently passed away and you are struggling with your finances, get in touch with one of our advisors at Bespoke Support Network. We will be happy to help you with any queries or advice you may need.
March 6, 2017
Preparation of Wills
Inheritance tax planning
Preparation and registration of Lasting Powers of Attorney
Administration of Estates
Courts of Protection applications
Long term care planning
Who will be administrating your estate
Who will benefit from your estate
How much financial provision to make for your beneficiaries
Who will care for your young children
What age your young beneficiaries will inherit.
Setting up a trust that provides for a vulnerable child or dependent.
Who gets possessions with sentimental value and family heirlooms
What you would like to leave to charity.
February 8, 2017
Inheritance Tax, otherwise known as ‘the voluntary tax’, is a tax on the estate of someone who’s died.
Typically there is no Inheritance Tax to pay if;
- The value of the estate is below £325,000 threshold
- You leave everything to your spouse or civil partner, charity or club.
In 2015, the Inheritance Tax was changed to allow people to pass on more to their children or grandchildren without being taxed. However, a new limit is set to be introduced in April which will allow individuals to pass on estates valued up to £500,000 tax-free.
Both married couples and civil partners are currently treated as individuals, each allowed to pass on their full allowance. The allowance is also transferable even if one partner dies before April 2017.
How does inheritance tax work?
Currently, each individual is tax at a rate of 40pc on all his or her assets above the threshold. This threshold is £325,000, but from April a new, higher threshold including a “family home allowance”, will begin to be phased in.
How will it change?
The new 2015 Budget introduced a new provision that allowed individuals and married couples the opportunity to pass on their main home with a smaller tax liability.
In 2017-18, the tax liability will be worth £100,000 but will gradually get bigger over the coming years.
However, there is a catch. This total must include a “family home”, which must be the main property. Buy-to-let and second properties will add to the total size of the estate as normal.
This means that married couples will be able to pass on estates worth up to £1m to their direct descendants, including a family home.
How will this affect my tax bill?
This change will bring down costs for all estate sizes including family homes. If you own a small estate you will still be exempt from inheritance tax, but larger estates which included family homes will have up to £140,000 extra tax-free allowance, for married couples.
The additional allowance will gradually be withdrawn for properties worth more than £2m.
Bespoke Support Network aims to provide advice to businesses and individuals alike, everything from financial planning to wills and probate. For more information and help with your business needs, call us today.