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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
Please share your thoughts and your plans.
Learn Change and Adapt ?????
Hmm interesting questions. So what are your plans........
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
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.
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
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!
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
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!!
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
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.
Still worth marrying a 20 year-old though!