Your Money: Q&A.
QI'VE read about trusts and they seem complicated. Can you explain them in simple terms?
AA TRUST is an obligation binding a "trustee" to deal with "property" (often investments) in a particular way, for the benefit of one or more "beneficiaries". They can be useful in protecting your family from inheritance tax.
QDO I have to wait until I am 65 before I can take a pension from my pension plan?
ANO. You can take pension benefits any time from age 50 providing the scheme allows this. However, from April 6, 2010 it will increase to 55.
QIS it possible to insure yourself against redundancy?
AYES. A few companies will insure your mortgage payment and any costs but check what restrictions apply.
QI WANT to take some money out of my with-profit investment bond but the company will apply an "MVA" penalty.
AMVA is Market Value Adjustment.
It is a penalty on withdrawals when investment conditions are bad. But many companies allow you to withdraw a certain amount without penalty.
QI WANT to give my daughter a large amount of money and I know if I survive for seven years there will be no inheritance tax to pay. Is there any way to avoid the tax if I die sooner?
ASUBJECT to your current state of health, you could take out a decreasing term assurance for the amount of tax over the seven-year liability.
-FOR detailed advice on any of the above subjects speak to a financial adviser.
Alternatively, call 0800 544 644 to request a no-obligation consultation with an adviser.
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|Publication:||Sunday Mirror (London, England)|
|Date:||Mar 1, 2009|
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