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Is your life insurance in trust? If it's not, it should be! Firstly, what is a trust? A trust is a legal arrangement that allows you to leave money and things you own to a person or people when you die. 💰RIGHT MONEY - inheritance tax is currently payable at 40% on any part of your estate value over £325,000. If you don't put your policies in trust, any payments on a claim are added to your estate for inheritance tax calculation purposes. 🤲RIGHT HANDS - trusts are flexible, which means you have control over who benefits (the beneficiaries) from your cover and who will be responsible (the trustees) for making sure that happens. ⏰RIGHT TIME - if your policy is written in trust, it allows your insurance provider to pay out any claims you make quicker than they could have if it wasn't written in trust. Therefore, your loved ones don't have to wait for probate for the policy to pay out. Feel free to get in contact on: Tel: 0330 223 1113 https://lnkd.in/erCYb_qZ Infinity Financial Advice Limited is an Appointed Representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. 𝗔𝗽𝗽𝗿𝗼𝘃𝗲𝗱 𝗯𝘆 𝗧𝗵𝗲 𝗢𝗽𝗲𝗻𝘄𝗼𝗿𝗸 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗼𝗻 27/02/2024

Is your life insurance in trust? If it's not, it should be 👏 A trust is a legal arrangement that allows you to leave money and things you own to a person or people when you die, this means: 💰 RIGHT MONEY - inheritance tax is currently payable at 40% on any part of your estate value over £325,000. If you don't put your policies in trust, any payments on a claim are added to your estate for inheritance tax calculation purposes. 🤲 RIGHT HANDS - trusts are flexible, which means you have control over who benefits (the beneficiaries) from your cover and who will be responsible (the trustees) for making sure that happens. ⏰ RIGHT TIME - if your policy is written in trust, it allows your insurance provider to pay out any claims you make quicker than they could have if it wasn't written in trust, meaning your loved ones don't have to wait for probate for the policy to pay out. If this sounds like something you know you need to get sorted, reach out to us today and let us help you! 💪 (Please note that we do not charge you a fee for our services)

What not to put in your Will: - Joint accounts - any funds will go to the surviving account holder - Joint tenancy property - Again, your half will go to the surviving tenant - Pension benefits - These will go to your spouse based on the conditions of the scheme - Life insurance - Unless its written into your estate, it will automatically be paid to the beneficiary upon your death - Business partnership - Its unlikely you will be able to transfer your share without consent from the surviving partner(s) - Anything you don't own - such as leased vehicles, hire purchase items etc Roper James Solicitors is here for all your legal needs, contact us today on 01752 546 448 or email [email protected] for more information #solicitors #roperjames #legaladvice #SolicitorsInDevon #willwriting

🚨 Supreme Court Ruling Impact on Estate Planning and Business Valuation🚨 Attention business owners, private company advisors, and estate planning professionals! A recent Supreme Court ruling could significantly affect your life insurance redemption strategies, estate plans, and business valuations. 📄 Supreme Court Ruling on Connelly Life Insurance 📄 This landmark decision has critical implications for estate planning and business valuation, particularly for private company owners and their advisors. Understanding this ruling is crucial to ensuring your financial and estate strategies are robust and compliant. 🔍 Why This Matters: 🔹 Estate Planning: Changes in how life insurance redemption strategies are treated in estate contexts. 🔹 Business Valuation: Implications for valuing your business in the context of estate planning and succession. 🔹 Private Companies: Potential impacts on business succession planning. 🔹 Legal and Financial Advisors: Essential insights to guide your clients effectively. We break down the ruling, offering practical advice to help you navigate these changes. Staying informed is key to protecting your assets, valuing your business accurately, and ensuring your estate planning strategies are future-proof. 🔗 Read the full article below Stay ahead of the curve and ensure your estate planning aligns with the latest legal landscape. Reach out to us at DeJoy & Co. for personalized advice and support. #EstatePlanning #BusinessValuation #PrivateCompanies #LifeInsurance #SupremeCourt #BusinessOwners #DeJoyAndCo

Use life insurance to effectively manage and mitigate inheritance tax burdens Our guide, "The Legacy Guide to Using Life Insurance to Pay Inheritance Tax," dives deep into how you can use life insurance not just as a tool for financial security, but as a strategic asset for tax planning. By writing your life insurance policy in trust, you can ensure that the proceeds do not increase the taxable value of your estate, thereby not contributing to the inheritance tax liability. This approach provides a straightforward path to safeguarding your assets and securing your family's future without the burden of significant tax penalties. Read the full article here. https://lnkd.in/dw3Nh5iM #EstatePlanning #InheritanceTaxSolutions #FinancialSecurity #TaxPlanning

Situation: You are a partner in a small business, and upon your death, expect your estate to receive a buyout of your share. To facilitate this buyout, you've had the company take out a life insurance policy that will fund the transaction. Because of your shrewd planning, both your partners and the beneficiaries of your estate will grieve your death in peace. They'll speak glowingly of your largesse, and perhaps even share a couple of the unseemly jokes you used to tell. At least, that was the situation until a recent Supreme Court decision, which held that the company's receipt of life insurance proceeds has increased its enterprise value. The business interest that passed to your estate is now worth substantially more than you had calculated. The estate owes an additional six or seven figures in tax. Your beneficiaries are pointing fingers over who among them is most responsible for this debacle. When they speak of you (not quite as often), it's in shared reproval of your failure to plan. They scarcely remember the ski trips and island vacations. Clearly, this outcome is one you want to avoid, so you came to CPMT, we assisted in your planning, and now you're back to doing what you do best - growing your business and solidifying the legacy you deserve.

The number one mistake British expats make when buying life insurance: Not Writing the Policy into Trust British expats often overlook this crucial step. Inheritance tax can take up to 40% of your estate's value. If not managed proactively 1. Understand the Impact of Inheritance Tax When a life insurance policy isn't written into trust, its payout adds to the estate's value. This can make the inheritance tax problem worse. 3. Living in places like Hong Kong, which doesnt have inheritance tax, complicates things These regions don't have inheritance tax, so insurers there might not offer the defauly option to write policies into trust as insurers would do in the UK 4. Seek Specialized Financial Advice If you're unsure, consult a financial planner who specialises in helping expats. They can connect you with insurers that can write your policy into trust. 5. Avoid the Inheritance Tax Trap By writing your policy into trust, you can prevent the payout from being added to your estate. This simple step can reduce the tax burden on your beneficiaries Take action now to secure your financial future and protect your loved ones.

When you've created an estate plan, it's important to notify certain individuals and entities to ensure that your wishes are carried out smoothly. Here's a list of who you should consider notifying: Immediate Family Members: Inform your spouse, children, and any other close family members about the existence of your estate plan and where they can find important documents. Executor or Personal Representative: Let the person you've appointed as your executor or personal representative know about their role and where to find necessary documents. Beneficiaries: Notify anyone named as a beneficiary in your estate plan about their potential inheritance. Guardians for Minor Children: If you've named guardians for your minor children in your will, inform them of their designation and discuss your wishes for the care of your children. Trustee: If you've established a trust, notify the trustee about their role and provide them with relevant documents. Attorney: If you worked with an attorney to create your estate plan, inform them about any changes or updates you make. Financial Institutions: Notify banks, investment firms, and other financial institutions where you hold accounts about your estate plan, especially if you've designated beneficiaries or established accounts payable on death (POD) or transfer on death (TOD) arrangements. Life Insurance Companies: If you have life insurance policies, ensure that the beneficiaries listed on the policies align with your estate plan. Healthcare Proxy or Power of Attorney: If you've appointed someone to make healthcare or financial decisions on your behalf in case of incapacity, inform them about their role and provide them with copies of relevant documents. Professional Advisors: Notify any other professional advisors you work with, such as accountants, financial planners, or investment advisors, about your estate plan to ensure that they're aware of your wishes and can provide appropriate guidance. By notifying these individuals and entities about your estate plan, you can help ensure that your wishes are carried out effectively and minimize confusion or disputes during the administration process.

Estate Planning Practice Standard No.1(2023) Objective - To provide enough estate capital and income for surviving spouse without liquidating inherited assets. 1. Current risk free rate [reference: average 12 months fixed deposit rate without placement conditions] = 0.05% p.a. 2. Current inflation rate = 3% 3. Inflation adjusted risk free rate of return = [(1 Risk free rate)/(1 Inflation)] - 1 = -2.86% 4. Estate capital needed (with reference on daily income need and total years of provision): a. Daily Income = $100 i. Years of Provision = 10; Estate Capital Required = $417K ii. Years of Provision = 20; Estate Capital Required = $975K iii. Years of Provision = 30; Estate Capital Required = $1.72M b. Daily Income = $500 i. Years of Provision = 10; Estate Capital Required = $2.1M ii. Years of Provision = 20; Estate Capital Required = $4.9M iii. Years of Provision = 30; Estate Capital Required = $8.6M c. Daily Income = $1,000 i. Years of Provision = 10; Estate Capital Required = $4.2M ii. Years of Provision = 20; Estate Capital Required = $9.8M iii. Years of Provision = 30; Estate Capital Required = $17.2M 5. Above estate capital is most effectively provided via a life insurance policy of relevant contractual death benefit. 6. The life insurance policy's ownership for this purpose should be structured in either one of the followings so as the policy proceeds can by-pass probate: a. Living Trust owned upon inception b. Absolute assignment to living trust c. Absolute assignment to family office d. Spouse owned upon policy inception (under Section 146 of Insurance Act) e. Absolute assignment to spouse after policy inception f. Trust nominated to spouse (under Section 132 of Insurance Act) g. Revocable nominated to spouse (under Section 133 of Insurance Act) Allen

💚📈🔎 WEALTH TIP WEDNESDAY ✔✔✔ What is an ILIT Trust and how can it help with estate planning? An Irrevocable Life Insurance Trust (ILIT) can offer several significant benefits for individuals and families seeking to protect their assets and provide for their loved ones. Here are some key advantages of establishing an ILIT: 1) Estate Tax Reduction: >One of the primary benefits of an ILIT is its ability to minimize estate taxes. When properly structured, the life insurance proceeds held within the trust are not considered part of the insured's taxable estate. This can result in substantial tax savings for beneficiaries. 2) Asset Protection: >Assets held within an ILIT are shielded from creditors, lawsuits, and other claims. Since the trust is irrevocable, once the assets are transferred into it, they are no longer considered part of the grantor's estate and are therefore protected from potential creditors. 3) Privacy: >Unlike assets passing through a will, assets held within an ILIT avoid the probate process, which can be time-consuming and costly. Additionally, the terms of a trust remain private, whereas wills are subject to public record upon probate. 4) Creditor Protection for Beneficiaries: >The assets distributed from the ILIT to beneficiaries can also be protected from the creditors of the beneficiaries, providing an additional layer of security. 5) Preservation of Government Benefits: >If structured correctly, an ILIT can ensure that life insurance proceeds do not impact the eligibility of beneficiaries for government benefits such as Medicaid or Supplemental Security Income (SSI). 6) Flexibility: >While the ILIT is irrevocable, it can still provide some flexibility through the use of trust provisions, such as the ability to appoint a successor trustee or modify distribution terms under certain circumstances. Overall, an ILIT can be a powerful tool for estate planning, offering tax savings, asset protection, privacy, and control over the distribution of assets to beneficiaries. If you believe you may have a large tax bill at death without the liquidity to pay it, an ILIT can provide your heirs just that. It's essential to work with a knowledgeable estate planning attorney to ensure the trust is properly drafted and administered to maximize its benefits. #ILIT #estateplanning #financialplanning -Your Friends at Red Oak Financial Group