• A previous tenant, who finally decided that owning a house has more benefits than renting
• Just got married, so you and your partner are hunting for a home
• Has a growing family and you need a residence big enough for your children

No matter whom you are or what your requirements are, you must know that buying a property can lead to a series of money-related problems, especially if you are not sure what you are doing. Therefore, try to be a “wise” buyer to make the entire process stress-free and successful. Find out how you can have your own house without too much hassle.

• For the first-time owner – Rejoice in the fact that you hold a good position in the market and that several estate agents consider you a strong bet. The reason for this is that you have no complications such as completing your own home sale before having the capacity to acquire another property. With thorough research and assistance from an expert, you can come across a competitively priced residence.
• For homeowners – Are you looking for another place to live? If you are, then it does not make you a lesser buyer. What is more, it does not mean that you cannot find a great bargain. You still can. However, you have to ensure that you have a potential customer before searching for a property. And, do not just choose any client; go for an offer that you know will push through. This way, you have the funds to finance a home purchase.
• Take out mortgage – Whether you are the former or the latter, always sort out your finances before hunting for a property. Now, you may not be blessed with unlimited funds; however, this does not mean that you cannot go long. You can still buy that charming white beach house through the right financing option. Now, if you are purchasing in Australia, you can check out a wide range of heritage home loans to find a term that fits your requirements.
• Hire an expert – Whether you are already an expert in real estate transactions or you are just starting to learn the ins and outs of property buying, it pays to seek the assistance of a licensed estate agent or a solicitor. The experts can help you deal with sellers and bid on a price, and take care of legal procedures and hasten the whole process, respectively.

Remember; this is just basic information. If you really want to guarantee a hassle-free transaction, the last tip is essential because the professional have adequate training and knowledge on this matter. And, should you decide to put up your residence as inheritance, a solicitor can help you with related issues such as taking out liability insurance and learning about Gift Inter Vivos (which is connected with giving an estate as gift).

Some heirs admit that they have never really given this as much thought as they do their credit card bills until the day that Inland Revenue comes knocking at their door to collect shocking sums. This lack of understanding of the implications of receiving a gratuitous present during or after the life of a donor can be a bit worrying, considering how some people could be transferring a bombshell instead of a legacy to the people they love.

Financial advisers claim that you can make use of annual allowances set to cover for gifts made for the year. If you did not use up any of it, you can bring forward the unused portion to the following year, thus increasing the maximum amount that you can donate tax free. Another way is to hand out small presents each year, which is very useful especially if you are planning to give money for someone’s birthday or during Christmas.

However, aside from taking advantage of existing breaks, exemptions, and allowances, inheritance tax insurance for lifetime gifts will help minimise the financial burden on the recipients. Unlike a term policy (which is fixed to a specified period), taking out a whole-of-life assurance cover will provide a guaranteed payment (the assured sum), regardless of when the donor dies.

What is even more advantageous about such policies is their duration, which is only good for seven years. Consequently, they are not priced so expensively as to lessen one’s estate considerably. No doubt, despite that rising prices of property have made inheritance taxes more threatening, the liabilities may be managed simply and effectively with the help of insurance. Have you given these things some thought? If you haven’t yet, it is high time that you do.

Third Party
It pays for liabilities (can be injuries or damages) you caused to other people. Through this, you will not have to use your own money to settle (possible) hospitalisation, medication, or property repair.

Credit
It generally disburses your debt payments in the event of job loss, accident, or death. This is a great benefit, as it keeps your family from financial burden should anything happen to you.

Insurance at Amusement Points
It is one of the most recent policies, wherein the owner of a recreational facility charges you for chartered equipment. For instance, if you rent a yacht and the service provider has this type of cover, he or she may ask you to pay a certain percentage. In case you lose the boat or cause damage, you will not have to pay anymore as the extra fee settles your liability.

Travel
It is a vital requirement if you are fond of travelling, as it protects you or your family from unnecessary expenses due to an accident, injury, or loss of personal property. Most of the time, it includes medical coverage and compensates for delays.

Auto
It pays for car maintenance or repair costs due to damages (most of the time). It may include third party liability policies.

Health
It typically involves medical plans, which protects your finances from the high costs of healthcare nowadays. It may also include compensation for workplace injury or accident. When it comes to dental checkups and procedures, you have to take out another insurance policy.

Property
It usually pays off losses or damages due to natural calamities (e.g. flood and earthquake), burglary, theft, or fire.

Life
It can be either for protection or investment purposes. For the former, your family will receive financial assistance in the event of your death. On the other hand, the latter is good for growing your capital. Since there are plenty of policies and premium rates available, it helps to compare life insurance quotes.

Gift Inter Vivos
It covers the Inheritance Tax (IHT) liability, which comes up when you leave your family members with money. You can learn further details about this type on this blog.

There goes a list of some essential coverage plans for you and your loved ones. Apart from these, you can find more categories such as dental, critical illness, and home insurance.

1. Make a gift of your assets
Basically, this is a process wherein you transfer the title of your property while you are still alive instead of it being inherited through death. For example, you can gift up to 12,000 pounds for your children in one year. The benefit of this is it reduces the amount of inheritance tax your heirs have to pay. Of course, one of the requirements of this procedure is that you have to be willing and capable of gifting. This means that you were of sound mind and body when you made the decision.

2. Get married
Believe it or not, inheritance tax is no longer payable when an estate is passed between husband and wife. In addition, the unused balance can be transferred to the spouse after death.

3. Live for seven years after giving the gift
If you have decided to gift your assets, you can make additional tax free arrangements known as PETs (Potentially Exempt Transfers). However, this can only be accomplished if you remain alive seven years after you have made the gift. For instance, if you pass away and the value of the transferred properties is more than the band threshold, then your heir can apply for taper relief, wherein the tax is slightly reduced. Of course, the overall amount would still depend on the value of the property. As such, it helps to stay fit and strong during the time of transfer. Having a health insurance plan also helps.

4. Apply for gift inter vivos insurance
In case you pass away while transferring the title of property, you can further lessen your heirs’ inheritance tax through this financial coverage. Though it may not completely shoulder the remaining balance, but at least it can help reduce the bill to a more reasonable amount. Of course, in order to know how much money you need to invest, you need to study not only the current value of the property, but also try to estimate its value for the years to come.

If you need help finalising all other property details, you should seek the aid of real estate and legal advisers.

The sum assured decreases to mirror the Government’s IHT regulations and offsets the IHT liability on any gifts you have made, paying out a guaranteed, tax-free lump sum if you die during the policy term. The policy cannot be written on a joint life basis. The IHT bands that the policy is structured to pay out at are as follows:

Gift and Death     Charge Applied
1-3                           100
4                               80
5                               60
6                               40
7                               20

Notes (A gift is the transfer of an asset such as property or money etc from one person to another where no payment of any kind is given by the receiving person to the donor. Your estate is the total value of your possessions in whatever form they take.)

Under the inheritance tax rules no tax is immediately due when an gift is made during a donors life. However tax does become due if the donor dies within 7 years of the gift being made. The amount of tax is scaled down from the 4th year onwards.

The cover on a gift inter vivos term insurance is designed to provide a lump sum amount sufficient to pay the IHT due when a donor dies within 7 years of making a gift.

To achieve this the sum assured is set at the start of the policy to the amount of inheritance tax that would be due. It remains that level for 3 years and then reduces to 80% in the fourth year, 60% in the fifth year, 40% in the sixth year, and 20% in the seventh year.

The gift inter vivos life insurance therefore has term of 7 years and is a form of decreasing term life insurance. After the 7th year cover ceases at which point liability for IHT also ceases.

Gift -Inter-Vivos life insurance is a special kind of cover and to arrange it speak to a financial adviser. To find out more fill in the form below:

Unless it is written under trust, on death the proceeds of an ‘own-life’ policy will form part of your estate. If the policy is written under trust then the proceeds on death will not normally form part of your estate for Inheritance Tax purposes. Further information about writing policies under trust can be obtained from your Financial Adviser.

An ‘own-life’ Gift Inter Vivos policy should normally be written under trust. Please speak to your Financial Adviser about the tax implications this may have.

If you are insuring someone else then the proceeds of the plan will be payable to you as the policy owner, and not to the estate of the person you are insuring. The proceeds will then form partof your estate.

The tax treatment depends on your personal circumstances. All references to taxation are based on our understanding of current legislation and HM Revenue & Customs practice, which is subject to change.

It is a life assurance policy that provides a cash lump sum to cover a potential Inheritance Tax liability if the donor of a gift dies within seven years of making the gift.Premiums are fixed at the outset and will not change during the term of the policy. The term of the policy is 7 years. The cash lump sum that we would pay out on death goes down over the term of the plan as follows:

Policy year                % of Initial Cover

1                                    100%
2                                   100%
3                                   100%
4                                   80%
5                                   60%
6                                   40%
7                                   20%