Ask a fully qualified Independent Financial Advisor to answer all your money questions. If you have a money question regarding your mortgage, pension, savings or more, our resident qualified Independent Financial Adviser is on hand to set your finances in order with expert advice and tips. Read on for this week's questions and answers.
Money Questions Answered:
My wife & I (both 67) have got Private Pensions written in Trust as we have sufficient company pensions. How can we pass it on, after 75, tax efficiently, please?
Ask an Independent Financial Adviser: Jason Witcombe’s Answer:
As far as I am concerned there are no fantastic ways to mitigate Inheritance Tax (IHT) on unvested pensions post age 75. There are, however, many ways to mitigate IHT on other assets and I would recommend that you sit down with an independent financial adviser to work on a financial plan across all of your assets rather than looking at your private pensions in isolation. As an example of what could be done with the pension, you might be able to gift the 25% tax-free cash from these pensions as a “Potentially Exempt Transfer” and then gift away the monthly income produced by the pensions under the “Gifts from Regular & Habitual Income” rules. Feel free to give me a call if you would like. Remember also that the pension rules could easily change in the next 8 years.
Money Questions Answered:
I have a mortgage for £163,000 with GMAC RFC which is an interest only payment mortgage. I would like to change this to a repayment mortgage, where I am paying off the actual mortgage and the interest. Would I be able to change this same mortgage to the repayment kind with the same Mortgage company, or would I need to remortgage with a different company?
Ask an Independent Financial Adviser: Jason Witcombe’s Answer:
You should be able to change this on your mortgage without penalty and without the need to remortgage either with GMAC RFC or with an alternative lender. Most lenders will allow you to switch from interest only to repayment. Give GMAC RFC a call and they will be able to tell you.
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Money Questions Answered:
Eight years ago I bought a Marriott Vacation Club timeshare in Florida, USA. I now need the money and can no longer justify the annual maintenance fees, perhaps in common with a lot of people who bought timeshares in the '90's and early '00's, I have decided to sell it back to Marriott. I am selling at a loss which was to be expected as I never purchased it as an investment. They offered me a price which I accepted. Two questions: 1) can I write the loss off against UK capital gains tax in the tax year of the sale (2008/9)? 2) The USA's IRS have withheld 10% (about $1,000). How can I go about getting that back off the IRS?
Ask an Independent Financial Adviser: Jason Witcombe’s Answer:
Something I say to a lot of people is that whilst “financial planning” covers a very broad spectrum of advice (pensions, investments, tax planning etc etc) there comes a point where certain areas of advice are much more in the remit of an accountant or a solicitor rather than a financial planner. Both of your questions are tax return related and as such I would recommend that an accountant should be your first port of call.
About our Resident Financial Expert
Jason Witcombe (pictured) APFS, CFPCM is a Chartered Financial Planner at Evolve Financial Planning. He has been awarded prestigious Chartered Financial Planner status, a qualification that only around 900 of the UK's 65,000 qualified advisers have attained. He is also a Certified Financial Planner and is an Associate of the Personal Finance Society, www.evolvefp.com
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