Starting 1/11/2011 with an annual limit of £3,600 Children below the age of 18 can now also  invest into the tax efficient ISA (Individual Savings Account) and they can manage the account from the age of 16.

Grandparents can help their grandchildren and help save on potential IHT by utilising their annual allowances very tax efficiently by gifting £3,000 to the grandchild each year.

Junior ISA’s are expected to quickly become a popular way for family and friends to build up tax-efficient savings and investments to help with the cost of university, provide a deposit for a house or simply give children a great start in life.

Junior ISA features

• Allowance of £3,600 per child per tax year

The annual allowance will rise in line with inflation from 2013.

• Account held in child’s name

A parent or guardian can open and manage the child’s Junior ISA.

• Anyone can contribute to a child’s Junior ISA

Once a parent or guardian open a Junior ISA for their child anyone, friend or family, is able to make a contribution up to the annual limit.

• No withdrawals permitted until age 18

When the child reaches 18 their account is automatically converted into an ‘adult’ ISA and they are entitled to full access to their investments and savings.

• Same tax benefits as an adult ISA

No capital gains tax and no further tax on any income. Interest on cash held in a Junior ISA is paid gross. Please remember the value of tax savings depends on the child’s circumstances and tax rules can change over time.

• Cash or Stocks & Shares

Like adult ISA’s, there are two types of Junior ISA; Cash or Stocks & Shares. Children will only be able to hold one Cash Junior ISA and one Stocks & Shares Junior ISA at any time.

Who is eligible for a Junior ISA?

Any child resident in the UK who wasn’t eligible for a Child Trust Fund (CTF):

• Children born on or after 3 January 2011
• Children (aged under 18) born on or before 31 August 2002
• Children born on or between 1 September 2002 and 2 January 2011 who didn’t qualify for a Child Trust Fund. Note that most children born between these dates did qualify for a CTF.

Contact ourselves at Bentley Brown (IFA) on 0800 848 8908 for a FREE consultation

]]> http://www.bentleybrown.com/junior-isas/feed/ 0 http://www.bentleybrown.com/protect-the-family-home/?utm_source=rss&utm_medium=rss&utm_campaign=protect-the-family-home http://www.bentleybrown.com/protect-the-family-home/#comments Tue, 22 Nov 2011 13:23:26 +0000 RickHall http://www.bentleybrown.com/?p=38

Saving your inheritance! This is a topic mentioned by many of our clients as concerns rise regarding medication and the latest in our health system assisting in helping us all live longer in life. However, many parents and family members are having to reside in a residential home either through eventual ill health, strokes, dementia, Alzheimer or several other serious illnesses which require constant help and attention.

Every year 7,000 homes are sold to pay for care homes costs.

£600 per week is the average cost of a care home or £31,200 over one year!

Paying for care

Care is only 100% funded by the Government is you have savings/assets valued at less than £14,000* each (including your home/property)! (Figures correct as of 2009/10 and are subject to change annually)

As you would expect there is a great deal of law surrounding this area, which prevents individuals transferring assets in order to escape from paying for care home fees.

It is commonly thought that transferring the home to the adult children will prevent it from being used to fund the care fees.

Such transfers are likely to be challenged by the local authority as a deliberate deprivation leading to the home being sold to pay care home fees in any event.

In addition, outright transfers of property to children can create further problems.

For example, if the adult child dies before you, your home will pass to the beneficiaries of their estate, which is likely to be your son-in-law or daughter-in-law, also if your adult child was to get divorced, your home may form part of the divorce settlement!

There are many misconceptions regarding the gift of a property being safe from assessment by a local authority if a certain amount of time has passed since the making of the gift.

For example, there is much confusion surrounding the length of time for which a property has to be given before it is considered ‘safe’ from assessment by the local authority when care is required. Time limits mentioned range from 6 months to 7 years. The 7 year figure often arrives from confusion relating to Inheritance Tax law. The correct situation is that there is no time limit given in the legislation and a Local Authority could go back as far as they liked if they believed a deliberate deprivation has occurred.

What is the Solution?

The solution is putting your home/property into a Trust!

The features of the Trust ensure that the individual creating the Trust has a guaranteed right to live in the property for the remainder of their life.

It is imperative that specialist advice is taken at the earliest possible opportunity in order to ensure that your home is protected for the next generation

Contact ourselves at Bentley Brown (IFA) on 0800 848 8908 for a FREE consultation

The future of your business is in your hands!

1. HISTORY – April 2006 Commences, became an independent group of small business owners supporting local companies on a non profit basis to help each other grow by offering contacts, referrals and support where possible and tapping into years of experience of each individual to help provide support and advice.

2. MEMBERS – Local independent company members providing help, guidance and support to each other with the potential for referrals and contacts where needed.

3. ACHIEVEMENT – You get out what you put in! The more time you allocate to supporting the group the more the group are aware of what you have to offer. The more time you spend getting to know your fellow members the more time they spend getting to know you and what you have to offer. We all need help and the more contacts we all have the better chance we have of being put in touch with someone who needs your help!

4. COST – Your time and commitment. – If you want your business to grow here is where we can help. £10 per week, no annual fees or membership fees! If you want to join as a full member it saves you money at only £35 per month.

5. HOW – Promote your business every Wednesday morning, 7.25am to 9am, then refreshed and ready for a new day’s business. Enjoy a large freshly made bacon butty and a fresh cup of coffee included.

6. ENJOY – Mix and mingle and make the best out of each daily opportunity! Listen to a member take 15 minutes to promote their business and what they do best at.

7. HOW MUCH COULD IT BE WORTH TO YOU – Several contracts have been won over the years which have resulted in annual contracts worth from £20,000 to £25,000 per year! Can you afford to miss out on an opportunity like this or would you prefer to lay in bed for one hour longer?

This year 2011/12 we choose to help both a Local and International Charity organisation  with financial support. This year we are helping support St Oswalds Hospice, based in Gosforth, Newcastle upon Tyne where we often keep in touch with our local representative Jayne who has recently taken up a training exercise to Cambodia, our best wishes to her.

Also the International Red Cross receive our regular support, who have massive problems with food, clothing and equipment shortages to the needy where emergencies need the help and resources mentioned most.