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CAUTION
This page is under review some information may be outdated
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The Life of Brian Riley, Phase 2 – Brian is now 9
Although at Brian's birth all seemed well,
it is clear to see now that far more questions should have been asked
and satisfactory answers given as a forerunner of certain actions. For
example:
-
Did life cover assessment include all debts?
-
Was indexation included in the life assurance recommendation?
-
Had a nomination form been completed for the pension scheme and
details obtained?
-
Did Arthur understand the reducing nature of mortgage protection
policies?
-
Were any life policies written on a joint life basis?
-
Should trusts have been used to keep monies out of the estate and
speed up payment?
-
Should life cover have included accidental death cover?
-
Was a valuation of the whole estate made to consider potential
Inheritance Tax liability?
Mavis's situation after Arthur's death
| Income:
|
30,000.00 |
pa |
Assuming self employment continues |
|
|
10,000.00 |
pa |
Widow’s Pension from Scheme |
|
|
|
pa |
Child Benefit (Tax free) |
|
|
|
pa |
Widowed Parent’s Allowance |
|
|
47,230.40 |
|
|
| Plus |
3,150 |
|
Income from Investments (5%) (Assuming £40,000 is used to pay
off mortgage) and £30,000 is kept in reserve. |
| Total |
50,388.40 |
|
|
|
|
|
|
|
| Expenditure: |
3,800.00 |
pa |
Ramsdean |
|
|
3,000 |
pa |
St Mildred’s |
|
|
2,400.00 |
pa |
Mortgage payments 40,000 @ 6% |
|
|
9,200.00 |
|
PLUS living expenses |
|
|
|
|
|
| Capital: |
60,000.00 |
|
Life Cover (excludes mortgage protection) |
|
|
** 10,000.00 |
|
Antiques etc |
|
|
2,000.00 |
|
Bereavement Payment |
|
|
** 50.00 |
|
Premium Bonds |
|
|
40,000.00 |
|
D.I.S. (possible additional £40,000) |
|
|
30,000.00 |
|
Mortgage Protection |
| Total |
142,050.00 |
|
|
|
|
|
|
|
| Debts: |
40,000 |
|
Mortgage |
|
|
8,000 |
|
Sundry Debts (Arthur’s) |
|
|
48,000 |
|
|
** It may be that Mavis decides to keep these items, which would reduce
the scope to provide as much additional income.
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