Rearranging assets can “obviate inheritance tax”

Speaking to a financial advisor and rearranging assets can help minimise the amount of inheritance tax families will have to pay, the independent financial advisory Calculis has said.

There are uncomplicated ways of planning finances, such as placing funds into a trust, allowing consumers to still derive an income from the money, according to the company.

Calculis director Alex Pegley says: “There are various trusts that can be used – one can invest in qualifying investments that you hold personally but after two years are not susceptible to inheritance tax.”

People should be aware that not everyone must pay inheritance tax after the death of their partner. It only applies if the estate is above the £312,000 nil rate band and it does not affect people who receive it from their wife, husband or civil partner if they are both domiciled in the UK.

Only in the event of the estate being worth more than this is are the assets taxable if one partner dies.

Tags: band, law, Trust, asset, GBP

Market volatility increases attractiveness of buy-to-let

The recent fluctuations in the UK stock markets have caused a lot of financial concerns among investors.

Originally caused by the meltdown of the US sub-prime mortgage sector, the current turbulence in credit markets might lead some to look elsewhere to grow their assets.

Mortgage Trust commented today that some landlords are finding safer bets in the buy-to-let market.

According to their research, 32 per cent of new landlords have cited control over their investment was a major factor behind their decision to enter the market.

This represents a four per cent rise over the same question asked by the company in January.

Managing director at Mortgage Trust John Heron commented: “When investing in stocks and shares, your only option if you don’t like the way an investment in a fund or company is performing, is to sell.

“With buy-to-let, landlords are in the driving seat. As financial markets become increasingly volatile, this level of control will become more attractive to investors.”

Mr Heron also claimed that the spiralling base rate of interest – which the Bank of England has raised five times in the last year – had also led investors to become “increasingly risk averse”.

Tags: United Kingdom, director, bank of england, Trust, fund

Single parents struggle to save for kids

Single parents are finding it difficult to manage their banking, meaning that few are able to put money aside for their children.

According to Engage Mutual Assurance, only one in six lone parents make regular payments into a savings account for their children.

A study carried out by the firm found that married couples are much more likely to save for their child’s future, with 42 per cent making regular payments compared to just 17 per cent of single parents.

This is despite increased child benefit and child tax credit which were announced during the last Budget.

“Rising childcare and education costs, along with increases in the cost of living, mean that today’s parents are feeling growing financial pressures in bringing up children,” said Engage spokesman Karl Elliott.

“For lone parents, living on a single income, these pressures may be especially hard to deal with.

“However, parents should not despair of saving for their children’s future. Tax exempt child savings plans and Child Trust Funds provide simple and affordable means to saving for children,” he added.

Parents are advised to put at least some money aside on a regular basis to help pay for their child’s education and perhaps give them a starting point as they try to make their way onto the property ladder.

Tags: way, today, Child care, property ladder, exempt child savings, starting, Trust