Archive for August, 2013

The simple term Self-Invested Pension may be enough to turn most people who are not business minded off, as the investment plan can sound intimidating to an average person, however, they are among some of the best pension plans for a number of reasons and certainly warrant a second look.
couple saving with a SIPP
Therefore, before you automatically dismiss a SIPP as something that cannot possibly help you it may be worth it to take a second to review the following benefits that come along creating your own personal pension plan for the future.

One of the first and most sought after advantages of a self-invested pension is the fact that it offers flexibility and freedom to the investor since it allows them to choose where to invest their funds, and how they want to invest them.

For those who have large pension funds that want to have more control over their investments, a SIPP is really the best choice. After all, it is your money that is being contributed into the pension plan, so why not take the initiative to make sure you know what is happening to it after this point has passed.

Another reason to look into a self-invested pension is the fact that they usually do not come with any penalties or hidden charges. In fact, most SIPP schemes will have transparent charging structures that make it easy for anyone to figure out how their pension is being planned.

It is strongly recommended that you get advice from an independent financial advisor by visiting Think IFA or Unbiased before starting a SIPP

The fee structure generally has nothing to do with the size of the fund and will not change regardless of how long the plan is in place. This often makes an SIPP one of the best pension plans for someone that knows they have a large pension to manage or someone that expects to be building their pension for quite a few more years.

In addition, those who over the age of 50 but not quite yet 75 often find that a self-invested pension is a great way to draw out their pension without locking themselves into a fund that has an annuity attached to it. This is because a SIPP can be used when someone is moving slowly towards ‘income drawdown’ and is a great way to draw income throughout retirement since there are not as many restrictions, fees, or regulations placed on the scheme.

Once again, the freedoms that come with SIPPs are hard to beat when you compare them with other types of pension plans. With this in mind, those that that want to transfer funds from other pensions, control their own investment opportunities, slowly enter into a retirement drawdown, or invest large amounts of money into their pension schemes will likely find the best pension plans for them are SIPPs.

The simple truth is that it is hard to beat the flexibility that comes with a self-invested pension, and the reward for your due diligence will be a comfortable retirement sum later in life making your hard work worth it.

Life insurance provides vital financial support to your children when you are no longer there to care for them yourself. It is usual to assume that if you have put the correct insurance into place, your kids will have no financial worries at a time when money should be the last thing on their minds.
Life Insurance Written Into Trust
However, if your life insurance becomes part of your estate when you die, all the funds contained within it will be subject to probate. This could mean that your children have to wait up to six months to be able to claim the funds you have left them, even if the estate is completely uncontested.

Furthermore, if there are issues with the will or their claim is disputed, the time it takes for them to benefit from the arrangements you have made can be considerably longer.

Such a delay in payment could severely impact any member of your family. Consider how they will support themselves or continue with their own lives if they cannot access the funds that you have left for them.

In addition, any claim on the estate has to be made through a formal charge. Such a process can take further time but can also incur significant fees which eat into the nest egg that you thought was going directly to them.

Also don’t forget, any funds included within an estate are subject to inheritance tax. This means the total value of your fund could be eroded by as much as 50% before your kids even see a penny.

However, there is a quick and easy solution which solves all of these problems. All you have to do is fill in one simple form.

How to Place Your Life Insurance into Trust

By placing your life insurance into trust you can effectively ring fence the money that has been allocated to your family members.

It will protect them from long time delays before they are able to receive the money and will negate all probate fees. In addition, the funds contained within the trust will avoid your estate entirely and will therefore not be subject to any inheritance tax.

Simply by filling in the relevant form, you can directly nominate the people you’d like to receive the benefits from your policy. This will enable your beneficiaries to be paid, quickly and directly so that they receive all the benefits that you had intended for them.

Furthermore, this process should cost you nothing at all. Here at Insuranet we will offer this service completely free of charge. So if you are considering taking up life insurance, then ask us for your policy to be placed into trust for those that you really care about.

If you already hold an insurance policy, talk to your provider and ask them to send you the relevant forms so that you can make the arrangements now.

Putting your life insurance into trust is not difficult, time consuming or expensive but the difference it can make to your children is unforgettable.

To speak with one of our friendly advisers about life insurance and trusts, please call us on 0800 799 9330 or visit our life insurance comparison page here.

Useful resources:
The Law Society website explains the process of Probate – http://www.lawsociety.org.uk/for-the-public/common-legal-issues/probate/