Financial planning in your forties
How to best help your grandchildren financially
It’s well known life begins at forty. Doesn’t it?
It should be an exciting decade, full of plans and aspirations. It’s also likely to be a time of optimum earning potential.
What’s more, it’s a crucial decade to take a step back and make sure your finances are on track to meet your goals.
Can we make inheritance tax simpler?
Being a grandparent is an exciting time of life. You get all the enjoyment of doing fun activities with your grandchildren but can hand them back at the end of the day. Part of that pleasure is knowing that you can help them financially. Often, you’re at a stage of your life where you’re comfortably off and in a position where you want to give a helping hand to the next generation.
Is buying a state pension top-up worthwhile?
Inheritance tax (IHT) has existed in the UK for over 200 years. In its current form, it was brought in to replace the old Capital Transfer Tax; a measure that was brought in itself as a form of wealth distribution in order to regulate disparity between rich and poor.
Can I use equity release to pay for care?
As part of your overall financial planning, one item that is worth considering is your state pension and whether you are on track to get the full amount. If not, it is possible to buy top-ups, which could boost your payout by £244 a year for life. The 2017/18 voluntary payment, under the Class 3 National Insurance top-up scheme, costs £741 and will get you nearer to, or over, the threshold for the maximum state pension payout – currently £164.35 a week. Such an opportunity can be particularly relevant for those who have contracted out of part of the state pension at some point previously during their working life.
It’s one of the scary things about growing old, isn’t it? We’re all living longer, thanks to medical science but does that mean more of us are going to end up in a care home, struggling to find the means to pay for it? A year in a care home can cost more than £50,000. This means some families are accumulating huge bills. If you have assets of more than £23,250 (slightly more in Scotland and Wales), the law states that you must fund all your care costs yourself, without any help from the Local Authority. This figure includes property, so if you have your own home, you won’t be eligible for any support.