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Q I RUN my own small business and, as well as having life cover, I have been advised to take out an income protection policy as well. How necessary is this? DC

A IF you were to become injured or ill long-term and were unable to run your business, do you have money elsewhere that would cover your loss of income, or pay someone else to run your business for you? If not, then income protection could provide the money to assist you. For a free guide to protection please call 0800 544644.

Q I AM due to retire in a year. Should I take my entire pension fund as annuity or take part of it as tax-free cash? RD

A THAT depends on how much income and flexibility you require, as well as the annuity rates at the time of retirement. As this decision will affect the income you will receive for the rest of your life, you should ensure you shop around to find the best annuity rates and seek independent advice before making any decisions. For a free guide to Lifetime Annuities please call 0800 544644.

Q OVER the last 30 years, most of my investments have been equity based to give me greater potential for growth on my money. Now I'm nearing retirement, should I be investing my money elsewhere? LT

A AS you approach retirement, your priorities often change as you may need to secure some of the growth you have obtained to provide you with a regular income. To achieve this, you may need to consider moving to lower-risk investments - I recommend you consult a financial adviser. For a free guide to savings and investments please call 0800 544 644.

Q CURRENTLY all my assets are to be left to my husband when I die. However, I have been told that although at that time they will avoid Inheritance Tax, the tax will still have to be paid when my husband dies. Are there ways to avoid this? TR

A YES, leaving everything to your husband will mean that all the assets you both owned will be assessed for Inheritance Tax when he dies. Better planning can avoid this. One of these methods is to use a discretionary will trust. For a free guide ring 0800 544644.

Q I HAVE inherited a property from my grandmother but have no use for it. If I sell it straightaway can I avoid taxes altogether? AB

A UNFORTUNATELY you won't be surprised to learn that the answer is no! Capital Gains Tax (CGT) will be payable on the difference between the sale proceeds and its value at the date of death. However, assuming you are successful in your attempt to sell the property quickly, then your full pounds 9,200 CGT allowance should be available (assuming you haven't already made other gains in 2007/08). For a free guide to Tax call 0800 544644.
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Title Annotation:Business
Publication:Sunday Mirror (London, England)
Date:Jul 22, 2007
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