Way Group has set up an estate planning vehicle that it claims will allow policyholders to safeguard unlim ited funds from inheritance tax.The Way estate transfer plan uses an absolute trust to hold funds for future beneficiaries so a gift qualifies as a potentially exempt transfer. The investor decides how much of the assets should be placed within the Pet and buys endow- ment policies offered by Isle of Man Assurance linked to one or more of Way’s portfolio funds. The investor gifts the death benefit to these newly invested policies via a specialist absolute trust for the beneficiaries named by the donor. As long as the donor survives seven years, any value remaining within the trust will escape IHT. The maturities are at fixed times and levels chosen by the donor. The retained value for these maturities reduces the value of the initial gift for IHT purposes so the gift is at discounted value. Way Group chairman Paul Wilcox says: “This is the light at the end of the tunnel for seriously wealthy investors.” Worldwide Financial Planning managing director Peter McGahan believes the plan will be copied throughout the market but says its main downside is that it uses Way portfolio funds which he says have only shown average performance.
Towry Law head of pensions Simon Farrant has joined Distribution Technology Limited as head of financial planning. Media commentator Farrant will work on the development of a range of retirement planning services for DTL’s clients.
Brokers say that specialist mortgages can improve impaired credit profiles, according to Alliance & Leicester Mortgages.Four in five brokers – 80 per cent – believe the sub-prime market will continue to grow in the next two years with 19 per cent thinking it could increase by more than 20 per cent.A&L research has revealed that […]
Former Beacon Homeloans director Brian Pitt has joined Kensington along with former SPML director of credit Stuart Aitken. The pair will look at strategic opportunities in the specialist lending sector.
I read with great interest the article, Providers are in A-Day meltdown (Money Marketing, August 3). I have great sympathy for the likes of Mr. Jacob and his clients but the news comes as no surprise to many of us in the pension industry. This is yet another instance of poor standards of administration meted […]
Did you know that 60 per cent of business owners said they had no protection in place to cover the cost of buying shares should a business owner die?*
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As someone training to be a cricket umpire, fair play matters to Fortitude Financial Planning director Chris Bowmer. Doing the right thing for clients is something he has adhered to from the start of his career, even in a 1980s sales environment with nothing to gain by delving beyond a client’s surface requirements. While he acknowledges […]
Fund managers who have helped pay compensation over the collapse of life settlement bond provider Keydata will receive a £12m refund, the Financial Services Compensation Scheme has announced. Keydata’s management has been embroiled in a multi-million-pound legal battle with the FCA since it collapsed in 2009. The total bill for compensation stands at more than […]
With no employer to fall back on, the self-employed are on their own when it comes to retirement saving. Irregular income patterns can make it harder to save regularly into a pension and commit to locking money away until age 55. Those who are building a business may see that as their biggest asset and […]