Well the snow was almost as quick to disappear as it was to arrive – much to the disappointment of my children I would add… but now with a birthday weekend coming up for one of them, there is a shift in focus in our house anyway!

Aside from that it’s been a week of frustration for me, as I have been dogged by technology or rather my lack of understanding of it?!

As you may know, my time is split between our office locations in Tunbridge Wells and Orpington, so it has been frustrating because I rely on the ability to sync my phone with my laptops/pc to keep my contacts and diary up to date when I am out and about but, for some unknown reason, the calendar and contacts are being deleted each time I sync from one to the other or, if I am really lucky(?), I retain all the names listed in the contacts but am left with no numbers/emails… which is slightly annoying – especially if I am out and need to call someone!

The frustration is exemplified when speaking to our IT person, they are as confused as I am – “…but you are the expert?!..” I think to myself… but on reflection, this is not necessarily the case is it?

Experts specialize in one field or another and, just because someone can set up a network of computers, servers and so on, it does not necessarily make them the expert in why a particular mobile phone keeps misbehaving with said computers does it.

I should know better, after all, I have lost count of the number of times I am expected to know the answer to a question on any financially related topic, however tenuous the connection, because I am “in finance”.

Admittedly, my own mother was one of the worst for this misconception, regularly referring to me as the expert on her home or car insurance because “…that’s what you do isn’t it?…”

My expertise lies in the provision of advice to those approaching or at retirement and the financial concerns they may have so a question on which mortgage deal is suitable for someone for example, can sometimes leave me in a cold sweat.

Having decided to specialize in what I do, whilst I may have a better understanding than some on say mortgages, it would still take me some time to decipher the current market in order to find the most suitable solution for someone and that time, I imagine, would be greatly reduced by an expert in this particular field.

Instead, I opt to refer to someone I know deals with such things on a daily basis so my clients receive specialized and focused advice in that particular field – certainly saving them time and enhancing our own relationship – whilst I can continue advising in my specialist area.

This has taught me to appreciate that others may not necessarily understand what I do so I make it a point (as you may have noticed in previous updates!) to remind people on a regular basis… perseverance is a major part of my own personal mantra.

As for the phone issue, I think I have managed to resolve it but only time or the right expert will tell?!

Have a good weekend!

This Week …

Estate Planning

Step draws up draft inheritance tax clause for wills: http://bit.ly/x2AiHV
Gifting of property to avoid inheritance tax: http://bit.ly/zcfQoP
Legal case clarifies taxation of holiday lets in the UK: http://bit.ly/zFmvv8
RBS and Jefferies staff held as tax evasion investigation widens http://tgr.ph/z5URL3
ABS applications near 100-mark in first month http://bit.ly/x9SKYJ

Long Term Care

Dorothy going strong at 110: http://bit.ly/xJG8ZI
Why we need a commissioner for older people: http://bit.ly/yNISmv

Retirement

British pensions no longer gold standard: http://bit.ly/yEvua6
A ticking time bomb?: http://bit.ly/wrNfhL
How will inflation affect your savings, pensions and bills?: http://bit.ly/A6MWoe
Higher-rate pensions tax relief could be axed in Budget http://bit.ly/w0NkPF

Investments

UK inflation rate falls to 3.6% in January http://bbc.in/xsOij1
Bank of England says UK economy ‘to zigzag’ this year http://bbc.in/xc4h9p

Regards
Kieron

Whilst I appreciate it does create problems for some, I do enjoy the snow myself but, that said we are mindful that there are those less able than ourselves so make a point of offering, in such conditions, to get milk/bread/papers etc for our retired neighbours.

They have never actually taken us up on the offer and this seems to be for a couple of reasons really; one, because they are usually prepared and have stocked up on necessities prior to the snowfall and two, because he has worked outside all his life so even in his late 70’s, enjoys being outside – whatever the weather!

Last year, when there was a good 6-8 inches on the ground and the roads were pretty much out of action, we got the children ready to walk to the village shop to get supplies which is a round trip of 1 ½ miles.

Yes I know, we should probably have thought of getting supplies the day before but we always figure we will be out in the snow anyway – try telling 3 under 8’s any different!

Anyway, once we were all ready we called on our neighbour, only to be told by his wife he had already gone as he “enjoyed the walk”!

Apart from admire his resilience in such conditions, we could learn some valuable lessons from people like my neighbour and I guess the one overriding factor key to their independence is that of preparation.

Preparation is the key to success, as I am sure the many athletes preparing for this summer will testify, and that is something that can be applied to most things in life, including later life financial planning.

The financial issues faced by those approaching or in retirement do not usually disappear over time. Instead they linger or sometimes get worse – take inheritance tax as an example, as an estate grows, the liability on your heirs grows also – especially at the moment with the nil rate band frozen.

These issues, in most cases, can be resolved either partially or fully but the first step is to take the advice on what can be done and arm yourself with the relevant information so you can make the appropriate decisions going forward.

As I have said many times before, hope for the best but plan for the worst, after all to use something someone said to me recently as an analogy, there is no such thing as bad weather only bad clothing.

Have a good weekend!

This Week …

Estate Planning

UK won’t remove inheritance tax relief for family businesses: http://bit.ly/A7qMKs
Court of Appeal rules mixed-up mirror wills are invalid http://bit.ly/wmSwpx
‘How long before I’m exempt from paying capital gains tax on my second home?’ http://ind.pn/yfD9gr

Long Term Care

The true cost of paying for long term care: http://bit.ly/zLfR4A
You need to take responsibility for your long-term care: http://bit.ly/ySu3YJ
Supreme Court hears landmark social care costs case: http://bbc.in/wNrHZl

Retirement

Bank move could make pensioners poorer: http://bit.ly/zHSvLK
We’re going to live three years longer: http://bit.ly/A8Jppd

Investments

Bank of England injects another £50bn into UK economy http://bbc.in/z9lYHy

Regards
Kieron

Not sure about you but I can’t believe its February already… the drive into the office in the mornings is certainly getting lighter, which does make it a little more bearable, but where did January go?!!

There was a good attendance at our “Pre Retirement Seminar” on Tuesday, which highlights the potential issues faced by those in retirement – the topics of which I try to cover in these weekly updates. I enjoy these talks as there is usually a mix of delegates in the room and I find it interesting to see which parts they engage in the most.

Some are concerned about the more immediate issues such as a drop in their income or how to achieve the required returns on their investments, others are concerned about the potential cost of care (usually because they have experienced the issue through a parent/relative) whilst others want to know about the impact of tax (on income, capital gains & inheritance) on their holdings. Some are concerned about everything!

In the news, those same retirement issues remain to be highlighted, whether it is income in retirement, care fees or what to do with your savings – there always seems to be something to consider, but then I guess if there wasn’t, I wouldn’t be quite so busy…

Have a good day today and enjoy your weekend!

This Week …

Estate Planning

Appeal court overturns deathbed will where beneficiary guided testator’s hand http://tgr.ph/yBpwSw
Widow fails in dual challenge to husband’s will http://bit.ly/zd2H1M

Long Term Care

Elderly in crisis as councils cut care home funding: http://bit.ly/zfnRes
Website to rate care homes to be launched: http://bit.ly/yxyI6j
Sefton Council urged to raise spending on care homes: http://bit.ly/z3kKGz

Retirement

How the European Union is threatening United Kingdom pensions: http://bit.ly/xFrq5Y
How to fight dwindling annuity rates: http://bit.ly/yR3bGF
Pension income driven down by Bank printing extra money: http://bit.ly/wSPKmK

Investments

National Savings & Investments (NS&I) cuts key savings rate: http://bit.ly/xRiV3G

Regards
Kieron

A Proud moment: He had thought ahead about his position on the pitch and, as his defending team mate won it, the ball was played through the middle of two opposing midfielders into his path as he made his way from the half way line… with two team mates flanking him for support and defenders trying in vain to catch him, he raced towards the keeper at the opposite end… time seemed to slow down and, with a dip of his shoulder, he sent the keeper to his left then lifted the ball over the floundering keeper into the back of the net!

Who was this I describe? Van Persie with yet another phenomenal goal for the gunners, Walcott or the skills of a returning Henri?…

Not quite, it was my six year old son last Saturday and, as you can probably tell, I was pretty damn chuffed to say the least!

As if that was not enough, my wife had also come to watch and happened to be videoing the match at that point…. I have only watched the replay about, oh, 50 times so far!!!

A rather proud moment indeed…

My working week was never going to come close but it has been a busy and interesting week all the same with a diverse range of clients needs to address with long term care; inheritance tax; investing and some cash flow forecasting (for a couple who are planning their retirement over the coming years ahead) forming the main discussions.

It feels as though I haven’t seen much of my desk this week as most of it has been spent in meetings or I have been out of the office but then I guess that is the objective really isn’t it?

A few articles I thought worth mentioning below and I note that inheritance tax is becoming a bit of a regular topic again. Perhaps people are feeling that they do need to plan ahead as they would rather their heirs receive the benefit than the state?

Have a great weekend!

This Week …

Estate Planning

Party leaders back charity legacies: http://bit.ly/yTpq3j
Gerry Rafferty’s fiancée sues for cut of estate http://bit.ly/ypUkRD
Proposals to Give Inheritance Rights to Cohabiting Couples: http://bit.ly/xANzQU

Long Term Care

How can we pay for long-term care?: http://bit.ly/wtOvBF
Long term issue: http://bit.ly/zjJ5I5

Retirement

IFA fights for clients income: http://bit.ly/xDUhX9

Investments

UK inflation rate falls to 4.2% in December http://bbc.in/z1DV24

Regards
Kieron

2012 is now well and truly here is seems, with Christmas a dim and distant memory as far as I am concerned.

The children are all back at school and nursery, so we are trying to get back into our “normal” routines once again, which I will confess, has been a struggle…

Having put off my “to do” list at home over the Christmas period in favour of the obligatory family/friends visits, I now face the prospect of catching up!

My working week has once again been spent speaking about care fees, rounding off nicely with our monthly “Protecting Your Assets” seminar last night being well attended. We even received applause at the end, which was nice!

It’s been a quiet week this week in the news, well as far as personal finance is concerned at least, but some interesting articles have still emerged.

Having vowed to get a Will, the personal finance editor of the telegraph finally keeps his word but not without those thought provoking moments that we all go through and some contentious views from the British Bankers Association on the making of Wills.

It’s emerged that over half of all care home residents are self funding in some way and, whilst the Sefton ruling could be good news for Care homes, I guess the question remains, at what or who’s expense?

No surprises in the fact that private pensions are declining nor, dare I say it, that interest rates were held at 0.5% where they have been since March 2009.

To finish off, you may have heard about the guy who gave up his job a few years ago, went travelling and, whilst doing so posted videos of himself dancing on the spot in various locations?

Not sure how true it is but I heard this week that after he returned (having clocked up tens of millions of views on you tube), a corporate company sponsored him to go and do it all again for the next year’s version?!

As always, do let me know if you have seen anything of interest?

Have a great weekend!

This Week …

Estate Planning

Personal Finance Editor – “I kept my word and finally made a will”: http://bit.ly/yoJjfT
Consumers don’t need to use a lawyer to write their will, banks tell LSB http://bit.ly/y8dc8M

Long Term Care

Care home population continues to move towards private payers: http://bit.ly/wTDDmU
Sefton ruling puts councils on notice over fees: http://bit.ly/xO6gxN
Age UK urges care professionals to back Care in Crisis campaign: http://bit.ly/zXTuaO

Retirement

Private sector pensions in seismic collapse http://bbc.in/sj1sKE

Investments

UK interest rates kept on hold at record low of 0.5% http://bbc.in/z91nny

Regards
Kieron

Did you manage to enjoy the festive period and get any sort of break? Is it good to be back if you did?

Despite the 10 day break opportunity for myself, most of the “jobs” I planned to do at home ended up being postponed as we visited friends and family instead – looks like this weekend will be a busy one now?!

It normally takes a few days to get back into things after some time off but we have definitely hit the ground running so far this year with my diary almost completely full for January, I am now booking clients into February as opportunities to see them prior to this are fast disappearing.

This is great but has involved somewhat of a gear change to say the least!

Looking at the news over the last week or so, long term care is still featuring heavily with suggestions from the Prime Minister to reform how health and social care are treated, the extra cost of home care revealed as well as some local news relating to an old brewery that is to be converted into a private care home.

Elsewhere an example of using charitable donations in lieu of inheritance tax is reported and a suggestion for a “fairer” way to charge for it is reported.

Back in November (http://wp.me/pM5Re-e3) I mentioned an episode of the BBC’s inside out programme which revealed a company that was offering seminars advising on “how to avoid care fees”.

Taking action to “avoid care fees” is something that could be interpreted as a deliberate deprivation of assets as far as a local authority is concerned and is a moot subject.

As the programme pointed out at the time, deliberate deprivation of assets to avoid care fees is something a local authority can “undo” and there is no time limit to how far back they can go.

Of course, the other aspect to mention on this is that if you do succeed in removing assets from your estate and later require assistance from the local authority when it comes to care fees, you also rely on the local authority to decide which care home is adequate for you to receive care – the choice is not necessarily your own.

The reason I mention this is that the company in question is holding seminars in Tunbridge Wells this month.

Oh well, I hope you have a great weekend… I guess I should get ready to tackle that jobs list now!

This Week …

Estate Planning

Portrait given to museum in lieu of inheritance tax: http://bit.ly/uR1hsU
An inheritance tax reform?: http://bit.ly/tbwXwk
Time to consider succession issues: http://bit.ly/v8WS4R

Long Term Care

Old brewery site to convert into a new home: http://bit.ly/rNkx6R
Stealth rise puts home care fees at £7000 a year: http://bit.ly/shQpmC
Government unveils £150m extra care home funds: http://bit.ly/sEaJrN
Why the system is close to breaking point: http://bit.ly/xXv5hv
David Cameron orders merging of health and social care: http://bit.ly/zNrKmN
Responses to Health and social care integration: http://bit.ly/xK97H6

Retirement

Government reveals ‘alarming’ pension shortfall: http://bit.ly/s1O3tl

Investments

New Year’s Resolution – Treat Customers Fairly: http://bit.ly/tPFrL3
Invest and plan for the future in 2012: http://bit.ly/zkqb6j
Venture Capital Trusts: http://bit.ly/y47TPT

Regards
Kieron

We tried to see our local nativity this week but, sticking with tradition and having walked with the performers through the village as they looked for a place to stay for the night, when we arrived at the venue there literally was no room at the Inn – others had skipped the walk and grabbed a place in the chapel so we (along with many others) were turned away?!

Not sure if it was the weather earlier in the week that meant the numbers had swollen but the children were disappointed not to get to see the whole thing although they did get to walk with Mary, Joseph, the singers and, of course, the Donkey so all was not lost!!

In the news, as the fallout from the HSBC/NHFA scandal continues, care fees have been in the spotlight this week for other reasons too.

It has been suggested that the care reforms recommended by the Dilnot commission back in July of this year, on which a white paper was originally due next spring, will now not take effect until 2025?

Mr Dilnot himself has described this on BBC’s Radio 4 programme, as “unacceptable” and, in my opinion, also represents a massive breach of trust.

As he says, whilst the cost of £1.7bn does sound a massive amount of money, when you consider it represents just  1/400th of the total government spending (of around £700bn), in the scheme of things, it doesn’t sound too bad does it?

BBC R4 Today: Dilnot response on delay to elderly care reform:  http://bbc.in/vc7HTa

Oh well, this draws to a close my updates for 2011 so have a fantastic Christmas and I hope to see you in 2012!

This Week …

Estate Planning

Law firm sees early interest in proposed inheritance tax break on legacies: http://bit.ly/tYUQaS
Confirmed freeze on IHT a blow to home owners: http://bit.ly/sqiZxb
Practice Note LPAs: Law Society issues new professional guidance http://bit.ly/vGmcc3
Law Commission proposes significant reform to intestacy law http://bit.ly/u7WJnx

Long Term Care

A radical departure from traditional care homes: http://bit.ly/vksVYO
Mis-selling scandal: Who can you trust?: http://bit.ly/tfrBaK
Guide: How should we pay for our care?: http://bit.ly/sCDf7K
Bank’s £10.5m fine highlights the need to prepare in advance for long-term care: http://bit.ly/tZjQ1a
Care home reforms to be shelved for a decade: http://bit.ly/v7GLXE

Retirement

Today’s retirees 60pc worse off as gilt yields fall to record lows: http://bit.ly/vchTzP

Investments

Banks to advertise guarantee for savers http://bbc.in/umY7PU

Regards
Kieron

It was also the start of Christmas nativities this week, although our eldest was in a “performance” – perhaps “nativity” is not as cool when you are in key stage 2?!!…

In the news it’s been a busy week for HSBC too.

In case you missed it, they have been fined by the regulator for inappropriate advice given to vulnerable people in care homes who sought advice on paying their care fees. The fine related to a company they purchased (NHFA) who were a dominant entity as far as care fees advice was concerned. There has been a plethora of articles on this but, in case you haven’t seen any, I have highlighted a couple below.

Aside from the obvious detriment to those involved and whilst I am sure it was not the intention of the media to discourage obtaining advice when it comes to paying for care, is that those reading the articles or watching the subject on television will now be even more reluctant to do so as the issue of who to trust is once again brought to the forefront.

As an adviser on this subject I spend many hours each week talking to those affected, their families or attorneys/legal representatives but I know that there are many others “out there” who are not seeking advice (of the 50,000 or so self funders who entered care last year, only around 7,000 sought advice on their options) so this sort of news will only make it harder to get the information to these people.

That said, if it were easy then I guess everyone would do it so the updates, newsletters, seminars, advice and so on will continue from my end and I hope that more people will take the opportunity of discussing their situation with an appropriately qualified individual who is, more importantly, acting in their interests.

This Week …

Estate Planning

Official table confirming the 2012-13 tax rates and thresholds http://bit.ly/s88J4Q

Long Term Care

HSBC faces £40m bill for mis-selling to elderly in care: http://bit.ly/tevVOI
Investment bonds gain as INA products dwindle: http://bit.ly/tkr0gA
HSBC to widen mis-selling bond review: http://bit.ly/rWpEb1
Age UK to repay money made from referrals: http://bit.ly/ufKciE

Retirement

Almost half of Brits unaware of annuities: http://bit.ly/vyNprn

Investments

UK interest rates kept on hold at record low of 0.5% http://bbc.in/ssPlr8
Treasury plan for Isa top-up is announced http://bbc.in/u1QOxm
Rise of the Civets investment funds http://bbc.in/sWSJV5

Have a great weekend!

Regards
Kieron

Well, I think we are now definitely in Christmas territory…

Not sure about you but the weekend ahead for me involves getting the tree, searching in the loft for the decorations and ensuring the lights go up outside the house… and those are just my instructions from the children, my wife has been very quiet so far or perhaps her messages are being sent by stealth instead?!!

It’s been a busy week news wise too, what with the Autumn Statement and all but amongst all the doom and gloom – of which there is plenty -  there was this story from the back end of last week that I thought was, well, refreshing to say the least!

How old is too old? Personally, I think it is a mindset thing and this story would certainly seem to support this…

We are only too aware of budgetary cuts and the impact this is having on some care homes. So, with many facing closure, it is all too often we hear of the plight of the elderly residents as they face upheaval and uncertainty.

One such resident at a Kent care home took a different view though and, when told that her care home was facing closure, saw it as an opportunity and decided it was time to emigrate to New Zealand but, what makes this story even more amazing is that the lady in question is 102!….

I was gob smacked when I saw it but full of admiration for this lady and can only wish her well for her new life. Her only request on landing in NZ?… see for yourself in this BBC clip http://bit.ly/upfoml

On that happy note, have a fantastic weekend!

This Week …

Estate Planning

Feeling charitable: http://bit.ly/rBXYbY
Contentious Probate: Grandson challenges placing of estate into trust http://yhoo.it/tPlT51
‘Wicked’ stepmother and father jailed for stealing schoolgirl’s inheritance http://tgr.ph/uanUaP

Long Term Care

The State will provide?… http://bit.ly/u0EmAJ
Care fees crisis for ageing society: http://bit.ly/v3AQvP

Retirement

Silver RPI shows soaring cost of living: http://bit.ly/tiO2ea
Public and private sector pensions compared: http://bit.ly/uGtqkJ
How to fund our retirement is the age-old question: http://bit.ly/vOuCQe
Justice for private pensions: http://bit.ly/siXrdv
Pensions: will you live long enough to retire?: http://bit.ly/tzNGh6

Investments

Autumn Statement 2011: The Main Points http://tgr.ph/utH1nE
Autumn Statement 2011: Business reaction: http://bit.ly/sKQjzf

Regards
Kieron

My diary is starting to fill up now with the Christmas lunches, drinks as well as school nativities and, in between all of this, I need to organize my part of the Christmas shopping too – although I shouldn’t complain too much as there is a large family for my wife to contend with so I get off lightly I think!!

In the office, we are busy wrapping up (no pun intended!) our current workload in the run up to Christmas for the anticipated “shutdown” once we hit mid December… well, I say shutdown, but there will invariably be that call on the 23rd December asking for a report or some advice that can be reviewed over the Christmas period?!

Aside from that I watched the “Inside Out” programme on the BBC earlier in the week as the subject was “care fees” or more pertinently, “avoiding care fees”…

This was a headline that would grab most peoples attention and was one being used to promote the services of one company but, as the programme pointed out, aside from the costs being charged to set this up (£3,000!), by promoting the “services” offered in this way, it almost rendered them useless – falling foul of what is known as the deliberate deprivation rules.

Unfortunately, this is exactly the sort of thing that concerns me as it means people watching this sort of programme will not know who to trust or, worse still, will be even more confused by the subject… the irony being that they could end up with bad advice from someone who was just very good at marketing their product/service.

We put on seminars in order to educate people about their options when it comes to protecting assets and I tend to focus on those options once someone is in care, in other words they have gone past the point of no return as far as gifting assets away is concerned and know they are self funders so require appropriate advice on how to meet these ever increasing costs – deliberate deprivation is not even a consideration…

Of course, there are instances where action taken (prior to any care needs being required) could mean assets are not to be included in any future estate calculation by the local authority when it comes to care fees, but this should be more of a consequence of the advice rather than the reason for taking it in the first place.

An example would be gifting assets (directly or by trust) for inheritance tax purposes.

Such action could mean that the assets also fall outside the estate as far as future care fees were concerned but, the reason is to mitigate inheritance tax and not to intentionally deprive the estate for care fees purposes.

Prior to going into care, the two main rules to consider (when it comes to gifting assets) are what we refer to as:

• the six month rule and
• the predominant reason rule.

The first simply states that if you elect to gift assets up to 6 months before going into care, the local authority can automatically include those assets within any estate calculation to determine whether you should fund your own care costs.

The second says that if you give away assets, and the intention was to reduce your estate in consideration of care fees, theoretically, there is no time limit for a local authority to again include these assets within the estate calculation.

If someone is a self funder, it is important they start from the right place so seeking appropriate advice should be one of the first steps to establish their options and to then be able to consider the one most suitable/acceptable to them.

If you didn’t manage to see it, you can catch the programme on the BBC’s iplayer but it will only be around until Monday I believe? http://www.bbc.co.uk/programmes/b0071ms1

This Week …

Estate Planning

Proposed changes to the UK tax system could affect inheritance tax: http://bit.ly/v1oRdk

Long Term Care

Elderly care cut as councils divert £2bn cash to plug gaps: http://bit.ly/uEWZcl
Will an end to the fees freeze on caring for older people be enough? http://bit.ly/vAZJID
“Nonsense” for anyone to say that the UK cannot afford adult long-term social care: http://bit.ly/sZJ6Iq

Retirement

Pensioners take ‘hit’ to help economy: http://bit.ly/w4Efwf

Investments

£40 million premium bond prizes yet to be claimed: http://bit.ly/too48Y
Brits hiding £4.6 billion from their partners in secret saving stashes http://bit.ly/ug9vb5

Have a good weekend!

Regards
Kieron