by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Expat Investor : January February 2009
STATISTICS AND ANALYSES Brits lack IHT awareness rate band’ allows couples to more easily pass on more of their wealth to their beneficiaries free of IHT. Worryingly, it seems that Brits are potentially missing out whatever their age, with seven out of 10 (71%) of those aged 35–44 unaware of this. Equally surprisingly, nearly two- thirds (65%) of those aged 45–54 are unaware of the ‘transferable nil rate band’. Furthermore, over half of those aged 55 (52%) and above weren’t aware of the changes. Commenting on the findings, Paul New research from life insurer Zurich reveals that Brits are failing to protect their wealth through effective tax planning. Zurich’s analysis shows that nearly two- thirds of Brits (64%) are unaware of the changes to the inheritance tax (IHT) nil rate band announced in October 2007. The introduction of the ‘transferable nil Britain’s five million fortunetellers Wright, Investment Management Director, Business Development Director, says, “Planning what will happen to your estate sounds like a depressing thought, but what is even more depressing is what your estate can be subject to if you don’t start planning now. At best, a lack of knowledge can significantly slow down the distribution of assets, at worst it can mean assets not reaching those who you would want to receive them. “The message is simple; effective inheritance planning is not just for the rich. If you want to make sure that your assets reach the people or charities you want them to go to, you need to start planning your inheritance. If you’re not sure where to start, talk to a financial adviser and they will help you protect your estate and your family, as well as saving you time and money.” It seems that Brits are also unaware of the ways in which they can mitigate any potential IHT liability through effective long- term financial planning. For example, says Zurich, for parents looking to provide for their children upon death, life assurance policies can be written in trust. By doing so, the lump sum payable on death will be free of inheritance tax and immediately available to the beneficiaries, such as your children. Similarly, for those looking to reduce the value of their estate, it is possible to give away assets as gifts whilst still alive, thus reducing the potential IHT liability payable on the estate of the deceased. Mr Wright concludes, “Clearly, there are still many people who are not making the most of the various tax allowances available, despite the credit crunch.We would encourage people to take a more holistic approach to financial planning and seek financial advice to help protect their assets in the long term, as well as making their money work harder today.” 45–54-year-olds expecting to hit millionaire status, before steadying to 11% after the age of 55. Despite our preoccupation with having a millionaire lifestyle, most of us aim for a good work/life balance (28%), with job satisfaction (24%) over money (23%) as the main goal of a career. Sally Watts, Marketing Manager, comments, “It’s really interesting to see the ‘rollercoaster’ journey of hope that wannabe millionaires’ hopes take through life. After starting off full of optimism their attitudes quickly change around 35 – the point at which many of us have to cope with the costs of owning a home and looking after our children. “But things are clearly not as bad as they seem, with many 45–54- year-olds coming out the other end of the tunnel with renewed optimism.” The research also noted huge Hope springs eternal for millions of Brits who, despite the current economic turmoil, still believe that one day they’ll achieve millionaire status. Indeed, latest research from Cater Allen Private Bank, finds that an ambitious 5.4 million Britons expect to reach the millionaire landmark in their lifetime. Those aged between 18 and 24 are most optimistic, with 15% believing they’ll become a millionaire, followed quickly by those aged between 25 and 34 (14%). But hope rapidly fades after 34, with only 9% of those aged between 35 and 44 still harbouring millionaire ambitions. However, confidence returns over the next 10 years, with 14% of regional differences in people’s millionaire expectations. Almost one in five of people in the South West believe that the streets of their future are paved with gold – a stark comparison to the 5% of Scots that expect to become a millionaire. Interestingly, men have greater belief than women that they’re destined to become a millionaire, with 17% vs. 7%, respectively. Online Brokerage for Offshore Investors • Trade Forex, Futures, CFD’s and Shares offshore • European, North American & Asian Stock Exchanges • Backed by TD Waterhouse and Fortis www.internaxx.lu Tel: (+352) 2603 2003 Your International Online Broker in Luxembourg Internaxx Bank S.A., 46a avenue J.-F. Kennedy, L-2958 Luxembourg, R.C. B 78729. Fast Facts 22002 January/February 2009 ? EXPAT INVESTOR 5
March April 2009