Finawis Advisors

Feeling Humbled.

Thank you Ishkama, Abhnash Bains and Koch Minakshi for a wonderful opportunity to join the forum and connect with such wonderful and dedicated people.

I am glad I was able to add value to the 3-day conference by highlighting the legal impacts of losing mental capacity on Wills and your financial and personal care.

AsianProfessionalsProfessionalAsian👜

Is it really advisable and sensible to tax pensions?

http://www.finawis.com/estateplanning/think-tank-the-institute-for-fiscal-studies-ifs-has-suggested-restricting-three-types-of-relief-from-inheritance-tax-iht-to-raise-revenues-and-make-the-tax-fairer-%f0%9f%98%92/

Inheritance from overseas

If you receive an inheritance from overseas (e.g. India), is there a UK inheritance tax? NO.

However, planning ahead on how the assets are distributed by your parent’s Will can ensure that your inherited wealth is protected from:
* Generational IHT: Whilst wealth inherited from overseas estates will not taxed in the UK, assets inherited from a Will directly will add to your estate and impact the Inheritance Tax payable on your death.
* Creditors or Bankruptcy Claims
* Long Term Care Fees
* Divorce

See my article on Inheritance from overseas for more information and solutions: www.finawis.com/uncategorized/inheritance-from-overseas/

Inheritance from overseas If you receive inheritance from overseas (e.g. India), is there UK inheritance tax? NO. In UK, inheritance is not on beneficiaries like in certain European countries like Portugal but on the estat…

It's worth 'wasting' 10 years of premium for life insurance for young people !!
I have started doing life insurance (Finawis Advisors) and was looking at a cover for my daughter and my analysis revealed that it is worth paying (wasting) the premium for 10 years than buying it later. If she buys insurance at 28 years old when she needs it (property purchase) for the next 40 years, it is more expensive than buying when 18 years old (not really needed, to be honest) for 50 years.
This is without considering a huge potential risk: what if one or both parents have a heart attack, diabetes or medical conditions during this time? The premium when bought later (when 28 years old) will be significantly higher due to adverse family history!
Interesting? Follow Finawis-Advisors for my insights. https://www.facebook.com/FinawisAdvisors/

Thank you Dr Bains. Happy to be part of the journey to make a global change. Step one of change is education. Hope the article is useful to the readers and gives them insights into the complex world of inheritance planning and taxation.

Magazine link:https://ishkama.co.uk/wp-content/uploads/2024/03/IGC-Magazine-March-2024.pdf

Pensions – Protected from taxes? Think again!

Read more...

https://www.finawis.com/uncategorized/pensions-protected-from-taxes-think-again/

The population is aging and Dementia/Alzheimer's is on the rise. People are getting ready for it by executing Lasting Power of Attorney and appointing their trusted friends/family to make decisions on their behalf if they are no longer able to make them. However, the banks are not equipped to handle these requests. As reported by The Financial Times, once banks had received documents, the timeframe for registering them varied and most are not even equipped to handle the legal framework of joint attorneys....

Banks need to wake up to powers of attorney demands Research by Which? reveals huge disparity between the best and the worst

HMRC opened 2,029 investigations between April and November alone, recovering £172 million. This is part of a larger trend – with over 3,100 investigations and £251 million recovered in the previous tax year. The Times said that the Treasury is expected to raise £7.6 billion from inheritance tax in 2023-24, an increase of £500 million from 2022-23. The seven-year rule permits tax-free gifting if the donor survives seven years. HMRC is scrutinising gifts to prevent underpayment or avoidance. Interest is levied at 7.75% on overdue tax.

https://www.finawis.com/uncategorized/hmrc-investigates-families-for-iht-shortfalls/

The number of probate applications are increasing with data showing a 3 per cent rise each year since 2020, analysis by Final Duties has revealed. Jack Gill said: “The thing that catches most people out is the complexity of the probate process. It is a long, arduous journey full of pitfalls which, if fallen foul of, can result in big delays, additional costs, and even a reduction in the final value of the estate”...

Probate applications on the rise…. as the court battles with backlog The number of probate applications are increasing with data showing a 3 per cent rise each year since 2020, analysis by Final Duties has revealed.  Jack Gill said: “The thing that c…

Happy New Year!

Happy New Year! Visit the post for more.

Wishing you a merry Christmas

Wishing you a merry Christmas Visit the post for more.

New data from HM Courts & Tribunals Service (HMCTS) has revealed Probate application delays continue. For the 27,664 grants of probate issued in October, the average timeline from submission to grant was 15.2 weeks (September was 15.4) according to the data. This is still an increase from the 13.9 weeks recorded in June this year and continues to remain above the 12-month average of 12.5 weeks....

Probate Delays continue New data from HM Courts & Tribunals Service (HMCTS) has revealed Probate application delays continue. For the 27,664 grants of probate issued in October, the average timeline from submission t…

Thrilled on passing the 'STEP Administration of Estates' advanced certification. Lift off for handing Probates.

It's the time to give again! We are doing FREE standard wills for the festive period.

Having a Will, protects your loved ones as well as your assets. If you have young ones, you can make sure they are well looked after and cared for by people you trust.

Winter Promotion | Finawis Advisors Free Wills for Northwood residents.

We may finally be one step closer to digitalising LPAs. On Thursday 14 September 2023, the Powers of Attorney bill passed and is now waiting royal assent.

The bill will amend The Mental Capacity Act 2005 and open options for the Office of the Public Guardian to digitise the present paper application process making the process for making and registering LPAs much easier.

The Assisted Dying Bill 2023 passed its second reading in the House of Keys.....harbinger of things to come?

The Assisted Dying Bill that would allow terminally-ill Isle of Man residents the right to choose to end their lives if they are be terminally-ill and “reasonably expected” to die within six months and have the legal capacity to make the decision.

I am all for it!

https://todayswillsandprobate.co.uk/assisted-dying-bill-passes-second-reading-2/

Assisted Dying Bill passes second reading The Assisted Dying Bill 2023 passed its second reading in the House of Keys. Politicians chose to progress the Assisted Dying Bill that would allow terminally-ill Isle of Man residents the right to choose to end their lives. Dr Alex Allinson, who promoted the private members bill back in May 2022, m...

Thank you to Ishkama global Change (IGC) for inviting me to write for their audience. I am honored.

In my article, I explore the implications of losing mental capacity, particularly in relation to wills, and the importance of implementing Lasting Power of Attorney (LPA) as a solution.
https://ishkama.co.uk/wp-content/uploads/2023/07/IGC-Magazine-July-2023-compressed.pdf

I am trilled to be accepted into the Society of Will Writers as a full member!
https://www.willwriters.com/

............. "DO YOU TRUST YOUR FAMILY?" 👨‍👩‍👧‍👦

There is merit to Mr Jenkins thoughts, with proper planning, we can indeed make INHERITANCE TAX a VOLUNTARY tax!

Plan, Protect and Preserve your wealth! 💰
Give me a call to discuss your needs email: [email protected] 🤵‍♂️

Chancellor set to maintain personal tax rates despite windfall, experts predict - https://on.ft.com/3XSIDC2

On death, inheritance tax is paid at 40 per cent on the value of the estate over the nil-rate band — the level at which no tax is paid — which has been set at £325,000 since 2009, and £650,000 for a couple.

In the Autumn Statement, Hunt said the nil-rate band would be frozen until 2027-28.

Andrew Tully, technical director at insurer Canada Life, said: “The belief that IHT is strictly for the affluent no longer applies.”

He added that setting up a trust, making full use of gift allowances which allow you to pass on money to family while reducing your estate and leaving a legacy to charity are ways of reducing an inheritance tax bill.

Plan, Protect and Preserve your wealth!
Give me a call to discuss your needs email: [email protected]

Send a message to learn more

Jersey property unit trusts have to be registered on the TRS - trust registration service.

https://www.step.org/industry-news/uk-trs-rules-changed-include-jersey-property-unit-trusts

We can help you with (i) finding a way to pass on your assets to the next generation most effectively by lowering Inheritance tax and (ii) protecting your wealth from threats such as Divorce Settlement, Long Term Care fees, Creditors and Bankruptcy, Generational IHT and Marriage after Death in the hands of the beneficiaries.

Plan, Protect and Preserve your wealth!
Give me a call to discuss your needs email: [email protected]

Beneficiary can challenge law firm's charges despite executor's acquiescence to the costs, rules England and Wales High Court

https://www.bailii.org/ew/cases/EWHC/Costs/2023/181.html

We can help you with (i) finding a way to pass on your assets to the next generation most effectively by lowering Inheritance tax and (ii) protecting your wealth from threats such as Divorce Settlement, Long Term Care fees, Creditors and Bankruptcy, Generational IHT and Marriage after Death in the hands of the beneficiaries.

Plan, Protect and Preserve your wealth!
Give me a call to discuss your needs email: [email protected]

Send a message to learn more

The Financial Conduct Authority (FCA) has issued a warning to consumers on the risks attached to pre-paid probate plans.

The plans, which remain unregulated, lack FSCS protection, as well as lack of guarantee that monies will be held in trust or backed by insurance, and the inability of the Financial Ombudsman Service to intervene.

The Best Foundation, of which I am a member, led calls for regulation amidst a call for views from the SRA led to the FCA warning. https://bestfoundation.org.uk/calling-for-pre-paid-probate-regulation/

PLAN, PROTECT and PRESERVE your wealth!
Call Finawis Advisors today to discuss your needs. We are STEP affiliate.

Happy New Year

Chuffed to have completed the adv certification in Will Preparation and Writing!

STEP has introduced the Code for Will Preparation in England and Wales to give you peace of mind that your will preparer is doing the best possible job in helping you plan for the future.

The Code is a set of ethical principles that demonstrate openly the standard of transparency and service you can expect from a STEP member preparing your will. Will writing is not officially regulated in the England and Wales, however by using a will preparer who is subject to the STEP Code for Will Preparation in England and Wales, you will know they are taking all the necessary actions to plan for the future of your assets.
https://www.step.org/public/step-will-code
.....and on the way to becoming a probate lawyer next year, with god's grace.

Jeremy Hunt is planning a stealth raid on inheritance tax in the Autumn Statement as part of the chancellor’s attempt to raise about £54bn through tax rises and spending cuts to fill a hole in the UK public finances.

Government officials said Hunt was drawing up plans to extend a freeze in the inheritance tax “nil-rate band” from 2025-26 to 2027-28, a move that would raise at least half a billion pounds for the Treasury.
https://on.ft.com/3UkaL0b

PLAN, PROTECT and PRESERVE your wealth!
Call us today to discuss your needs.

Jeremy Hunt plans stealth raid on UK inheritance tax in Autumn Statement Chancellor intends to cut £33bn in public spending while raising taxes by £21bn under draft proposals

Tax issues with assigning a large insurance to trust. A lot of us prefer (and it is recommended) to assign life insurance policies to trust to keep it out of the estate.

However one needs to be careful about doing it in the right way. Firstly, if one is seriously ill (e.g. cancer) at the 10-year anniversary, then the value of the policy is no longer negligible, but would be valued based on the person's health, and a charge of up to 6% on everything above the "nil rate band" (£325k) would be payable. Considering the sum we are insuring for, this would potentially be unaffordable. Secondly, if one were to die and the payout is made to a trust, again everything above the "nil rate band" will be subject to a charge of up to 6%. This can be substantial and the 10 years starts from date of policy and not death!

A proper planning can eliminate this charge, quite easily and with no additional insurance cost.

PLAN, PROTECT and PRESERVE your wealth!

Call us today to discuss your needs.

Send a message to learn more

Reducing your Inheritance Tax Bill: Family Maintenance.

Often forgotten provisions of section 11 of the Inheritance Tax Act 1984. This presents tax planning opportunities for parents paying school fees. Say you want to place the funds into a trust for the benefit of your children from school education through to tertiary education (University) . Ordinarily, when transferring assets of this size into trust you would have to pay an IHT charge at a rate of 20 per cent – called an IHT entry charge – on the value the assets transferred into trust in excess of the couple’s available nil rate band. There would also be the potential for a further IHT charge if they died within seven years of setting up the trust. However, using the section 11 relief, one can transfer this money into a trust for the benefit of their children, without any IHT implications for their estates!

Often forgotten provisions of section 11 of the Inheritance Tax Act 1984. This presents tax planning opportunities for parents paying school fees. Say you want to place the funds into a trust for the benefit of your children from school education to tertiary education (University) . Ordinarily, when transferring assets of this size into trust you would have to pay an IHT charge at a rate of 20 per cent – called an IHT entry charge – on the value the assets transferred into trust in excess of the couple’s available nil rate band. There would also be the potential for a further IHT charge if they died within seven years of setting up the trust. However, using the section 11 relief, one can transfer this money into a trust for the benefit of their children, without any IHT implications for their estates!

PLAN, PROTECT and PRESERVE your wealth!

Call us today to discuss your needs.

Send a message to learn more