Ellis Bates Financial Advisers
With a flexible pension drawdown, if you’ve passed away and your partners passed away the funds can actually pass down to your children and their children, so the family always benefits from your pension planning.
A property protection will trust is a type of life interest trust incorporated into a will for couples living in England and Wales who jointly own the family home. With this type of trust, you can protect at least half the value of the property to pass on to your children or chosen beneficiaries.
Owning your home as tenants in common rather than joint tenants provide additional planning opportunities. This can potentially protect inheritance in terms of residential care fee assessment and marriage following bereavement.
A property protection trust is put in place so that the half share of the family home belonging to the first person to die passes into the trust (also known as a life interest trust). This allows the surviving spouse to benefit from the share of the house during their lifetime. Following the surviving spouse’s death, the property can then be passed on to either children or loved ones. By putting this trust in place, you are ensuring your assets are going exactly where you want them to go and giving you total peace of mind.
The benefits of a property protection trust are:
Please be aware that should the survivor remarry, not make a new will and then die, intestacy rules would see the new spouse taking a disproportionate amount of the estate. By severing the tenancy and creating a life interest trust in your wills (for the surviving spouse), this means your assets are going exactly where you want them to go and giving you total peace of mind. To preserve the residential nil rate band, property needs to pass to direct descendants.
Visit our page on trusts and protecting your family for more information.
We outline the different options that are available at retirement including annuities, pension drawdown, uncrystallised funds pension lump sum and a mix and match approach.
We discuss The United Nations 17 Sustainable Development Goals and how we align our investment portfolios to one or more of these, whilst breaking these down into environmental issues, social issues and governance issues.
| 2021/22 Earnings p.w. |
Employee | 06.04.2022 – 05.07.2022 Earnings p.w. | Employee |
| Below £184 | Nil | Below £190 | Nil |
| £184 – £967 | 12% | £190 – £967 | 13.25% |
| Over £967 | 2% | Over £967 | 3.25% |
| 06.07.2022 – 05.04/2023 Earnings p.w. |
Employee | ||
| Below £242 | 0% | ||
| £242 – £967 | 13.25% | ||
| Over £967 | 3.25% | ||
| 2021/22 Earnings p.w. | Employer | 2022/23 Earnings p.w. | Employer |
| Below £170 | Nil | Below £175 | Nil |
| £170 – £967 (U21s/apprentice U25s/Veterans) | Nil | £175 – £967 (U21s/apprentice U25s/Veterans) | Nil |
| Over £170 (otherwise) | 13.8% | Over £175 (otherwise) | 15.05% |
Class 1A: Generally the employer rate on all benefits in kind is 13.8% for 2021/22 & 15.05% for 2022/23.
Employment Allowance reduces overall employer class 1 NICs by up to £4,000 for 2021/22 & £5,000 for 2022/23, subject to conditions.
| 2021/22 | 2022/23 | ||
| Class 3 | Flat rate = | £15.40 p.w. £800.80 p.a. |
£15.85 p.w. £824.20 p.a. |
| 2021/22 | 2022/23 | ||
| Class 2 | Flat rate =
If profits over |
£3.05 p.w.
£158.60 p.a.
£6,515 p.a. |
£3.15 p.w.
£163.80 p.a.
£11.908 p.a. |
| Class 4 | Rate =
On profits |
9%
£9,568 – £50,270 Over £50,270 2% |
10.25%
£11,908 – £50,270 Over £50,270 3.25% |
| Allowances | 2021/22 | 2022/23 | |
| Personal allowance (PA)* | £12,570 | £12,570 | |
| Married couple’s allowance (MCA) Ø | Spouse/civil partner born before 6.4.1935 | £9,125 | £9,415 |
| Minimum MCA | £3,530 | £3,640 | |
| Blind person’s allowance | £2,520 | £2,600 | |
| Marriage allowance** | £1,260 | £1,260 | |
| PA income limit | £100,000 | £100,000 | |
| MCA income limit | £30,400 | £31,400 | |
| Dividend allowance | £2,000 | £2,000 | |
| Personal savings allowance | Basic rate tax taxpayers | £1,000 | £1,000 |
| Higher rate taxpayers | £500 | £500 |
* PA reduces by £1 for every £2 adjusted net income exceeds PA income limit.
ø MCA relief at 10% if at least one spouse/civil partner born before 6.4.1935. Reduces by £1 for every £2 adjusted net income exceeds MCA income limit, but not below minimum.
** One spouse/civil partner can transfer up to 10% of their PA to the other, provided neither is liable to tax above the basic rate.
Worryingly, when over 50s were asked about financial advice they said:
However, after heading that they could add as much as £47,000 to their pension (over a decade) by taking professional financial advice, half of them say they would.
Source data: 1,034 UK adults over the age of 50 (retired and nonretired) interviewed between 31.01.2022-07.02.2022
[1] https://www.retirementlivingstandards.org.uk/news/retirement-living-standards-updated-to-reflect
[2] https://ilcuk.org.uk/financial-advice-provides-47k-wealth-uplift-in-decade/
[3] https://www.bbc.co.uk/news/business-42193251
Cash flow modelling allows us to bring your financial future to life together.
We can help to:
| Overall Limit | |
| ISA 2021/22* | £20,000 |
| ISA 2022/23* | £20,000 |
| Junior ISA/Child Trust Fund 2021/22 | £9,000 |
| Junior ISA/Child Trust Fund 2022/23 | £9,000 |
*Eligible savers can contribute up to £4,000 of the overall ISA limit to a Lifetime ISA.
Since 6.4.2015, the spouse/civil partner deceased ISA saver (who died on/after 3.12.2014) has an additional ISA allowance equal to the value of the deceased’s ISA(s) at the date of death.
This information is based on our understanding of the Chancellor’s 27th October 2021 Budget & 23rd March 2022 Spring Statement announcements, the Scottish Budget announcements from 9th December 2021, and the Wales Budget announcements from 20th December 2021