Badly advised

dunstonh

ITs simply not possible for an IFA to shelve a transaction halfway through.

Yep. If the IFA dies before posting the applications, then the money is still in their bank account and nothing is set up.

If the IFA dies after posting the applications, then the provider gets the application, processes it, sends out the cancellation rights and presents the cheque and invests the money or deals with the transaction as specified.

whiteflag_3

dunstonh wrote: »

Yep. If the IFA dies before posting the applications, then the money is still in their bank account and nothing is set up.

If the IFA dies after posting the applications, then the provider gets the application, processes it, sends out the cancellation rights and presents the cheque and invests the money or deals with the transaction as specified.

Take it this is a one man band operation. !

I'd like to think the apps would still go in the post if I shuffled off before 4.45 pm.

dunstonh

I'd like to think the apps would still go in the post if I shuffled off before 4.45 pm.

What happens if you died in a car accident on the way to the post box?

What happens if you are mugged and killed by someone who just happens to have the same business name as the provider. Lets call him Mr Widows. First name Scot and he takes the cheques and clears the account before anyone notices?

What happens if a klingon ship appears from the skies and blows your office up?

Bet you havent got those covered

Sorry, I am a bit bored right now. Failing hard drive has resulted in 3 reinstalls this week before we idnetified the actual problem and currently restoring the backup onto the server and typing from a laptop which doesnt have access to the details i need whilst the backup is running. 74 minutes gone, 21 to go.

houseselling_help

Okay, all sounding plausible so far...but what if the tax free cash (whiteflag) was converted into shares in the business (of which my parents are the only shareholders) and for that business to then suffer the downturns of the building industry leaving it with no sharevalue and therefore no cash?

Which I think is about the level of my understanding of the whole affair so far. Again thanks for all your help on this.
Stuart

dunstonh

Okay, all sounding plausible so far...but what if the tax free cash (whiteflag) was converted into shares in the business (of which my parents are the only shareholders) and for that business to then suffer the downturns of the building industry leaving it with no sharevalue and therefore no cash?

That doesnt happen overnight and your a decision like that is not one an IFA can advise on. If they choose to invest in their own business and the business fails or closes with no value then I cant see how you can blame anyone else.

The 25%, once in your parents hands is free for them to do as they wish. The income is still there though or the pension fund minus the 25% paid out if drawdown was selected.

houseselling_help

So if they have 25% of the money in shares in their own business surely the company would be better off to the tune of that 25% in cash. Why can't they cash in those shares for the money they put in ?

Again thanks.

dunstonh

Not if the shares have a nil value. 25% of nothing is nothing.

Ironically, this is where I would say to them that they need to speak to their accountant!