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  • Buy-to-Let

    Old age, illness and death for landlords



    I know none of us like to think about

    Old Age ,Illness or Death

    But It is a reality

    We as Landlords have responsibilities to our Family's Customers ,and Lenders

    We Put the issues to the back of our minds and think it always happens to someone else

    We all spend time building our Business but are you prepared  for the sad events

    One day we will all have to deal with our death

    Of course there is Life Insurance which will pay of Loans and provide a cash lump sum to ease the burden for your family

    Old age if we are lucky is another issue we are all infact in business If we become ill who takes over the rains of the Business

    Do you have a Lasting Power of Attorney I place if you cant make financial decisions

    Have you spoken with your family what will happen to your customers

    Your Death or illness could effect there lives

    As Landlords when we become ill or old we still have the responsibilities

    they don't go away

    and then of course we come to IHT a large bill that will need to be paid

    Dementia is a growing problem we need to think now if this was to happen what will you do for your family and your customers

    Have you taken advice what will you do

    The areas above are spoken so little about but they are very important because our illness and death effect others more than

    most business

    Please share your thoughts and your plans.

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    Learn Change and Adapt ?????

    Hmm interesting questions. So what are your plans........

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    Hi Pete

    I stated giving this topic some time when I was 55

    and with the advent of Osborne Law I had to set up a Company

    So to use a holistic term I sat down and looked at the three areas

    Life Insurance was my chosen way to pay off Loans I haven't covered 100% of my Debt but I have given enough life cover to give my estate enough money

    to pay off some of my properties and enough cash to pay for rearranging the debts in my name

    The company is in a much better position Debts are with the Company so they don't have to be repaid

    My Shares will go to my wife on death

    Old age is a tricky one how long will I be old what state of health will I have

    I sat about this with a general retirement plan as if I was working

    so Old age Pension and SIPP  came into play I have enough for full old age pension and I am now pouring in cash in to my sipps

    The sip contributions come from self employment and I make further pension contributions from my Ltd Co

    Again the Company is handy for this aspect of pension planning

    My own goal is an income of around 35K a year away from BTL or Company Income

    I have also set up a Lasting Power of Attorney to cover the Management of my Finances if I were incapable

    as  for the Management of my assets and the Company I have given instructions to my Solicitor and my family that I wish the Business to go on

    If I die first all my assets both personal and company pass into a Family Trust with Trustees and solicitor

    When I become frail and cant work that will be the time to switch on my pension income and then start handing over the Management to my wife my son and my Grandson

    My goal for all three areas is Financial security for myself my family and my customers

    Its not pleasant looking at the Winter Years of life but it has to be done

    This is a very complicated business and there is no one size fits all  and a good well written will is a must

    It takes time to plan and should be planned in my opinion

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    Learn Change and Adapt ?????


    Was the life cover placed at outset in a Trust - so as to avoid ADDING TO IHT BILL?

    Is it Whole of Life cover - or Term Life cover?

    For those with a Spouse life cover should be effected with Spouse as Policyholder - as that means the sum insured can be paid immediately upon production of Death Cert/Policy Document - rather than awaiting Pobate - which if a Solicitor is involved as Executor can take several years - during which time any loans continue to rack up interest.

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    I have written all my Life cover in trust to avoid IHT

    Pensions are in trust too and a nominated beneficiary

    I have a a large number of Capital and Repayment Mortgages so I opt for decreasing term insurance

    which is still quite cheep at 59 years of age

    I don't have whole of life in my plans although they are good if it fits your own plans written In trust  too of course

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    Learn Change and Adapt ?????

    My plan is to do nothing but spend as much as I can before the State has to pay for everything.

    My pension  would last about 4 months in a care home

    After that the state will be paying as I won't have any obvious assets.

    I'll  probably give any cash to a charity.

    I have nobody I wish to leave any assets to

    Cerainy not  my a###hole sister and her brood!

    Perhaps I should consider some sort of trust fund to provide for LL education or for homeless ex-forces.

    I was thinking about giving the lot to the two fireman's convalescent homes.

    I just don't want the state to get a penny from me.

    So basically my plan is to spend all on wine women and song and then waste the rest!

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    If I started spending my money on other women my wife would not be happy lol

    I think as long as you have Plan Paul that's all the counts

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    Learn Change and Adapt ?????

    Yeah the only thing I would really like to do is on my deathbed get married to a twenty something  which would mean the Govt was stuck paying a widows pension for a very long time and would only stop I believe if she remarried.

    I'd love to leave the Govt paying out a pension for another 70 odd years!!

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    when I was an ifa  I saw it happen

    My Client was and ICI pensioner and he had cancer

    He got married to a young women he had know for years

    and she got his pension

    ICI were not happy but it worked

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    Learn Change and Adapt ?????

    Unless you are in a public sector job Govt would not be paying any Widow's pension - the State Pension stops on death of recipient.

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    Still worth marrying a 20 year-old though!

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