Prosperous & Creative Soul & MFW Year 3

savingholmes

mark55man said:

Most insurances pay outside of your estate - although you do need to check you have asked for it.  That takes it out of inheritance tax.  I think your kids are old enough not to need micromanagement from beyond the grave...

Currently AVC(?)/DC pensions are also passed on outside of the estate (there are wrinkles but I think its pretty clear if its just passed to your children).  I'm not sure what divorce does to IHT but if it treats you as single then you have £325K for all assets plus £175K for you residence (again it has to be left to your kids for this to kick in).  Might be worth a question on the tax board if you have concerns

Thanks Mark. That's really helpful. I was just trying to keep it out of tax. That should be fine for now then.  I think my home equity is 70-80k so I have a long way to go. My personal life ins doesn't seem to be a tax free asset but if all.my pensions are outside my estate it should be fine.

savingholmes

Thanks Beanie and Blackcats.  I appreciate your input. I think for now I'd be better channelling any would be premium to my avcs. My life insurance is about £35 a month so not huge for what it gives. I also think it is a requirement of my mortgage... Beanie you have a paid for house so not an issue for you.

Today £1k went into AVCs so that's a big leap forward. That's equivalent to around a month and half capital repayment. My expenses were paid so I have cleared the dehumidifier cost. Will have to see how the month goes to see if that level of AVCs will be realistic but for now it looks OK.

Really enjoying my creative projects currently which are helping with self care and stress relief. I'm also trying to do 5-15 minutes clean ups / make things better / tidier so I can improve my environment. 

Thanks for caring.

lucielle

Lots of projects on the go, sounds like they’re keeping you busy!
L

mark55man

SH just make sure you have completed your expression of wishes (which guides the trustees).  Also for your AVC (which I am unfamiliar with) check with the scheme provider - or ask on the pensions board

jwil

Glad the creative projects are helping

WelshmansDaughter

Sounds like you need an art studio 🤷

SandyShores

savingholmes said:

mark55man said:

Most insurances pay outside of your estate - although you do need to check you have asked for it.  That takes it out of inheritance tax.  I think your kids are old enough not to need micromanagement from beyond the grave...

Currently AVC(?)/DC pensions are also passed on outside of the estate (there are wrinkles but I think its pretty clear if its just passed to your children).  I'm not sure what divorce does to IHT but if it treats you as single then you have £325K for all assets plus £175K for you residence (again it has to be left to your kids for this to kick in).  Might be worth a question on the tax board if you have concerns

Thanks Mark. That's really helpful. I was just trying to keep it out of tax. That should be fine for now then.  I think my home equity is 70-80k so I have a long way to go. My personal life ins doesn't seem to be a tax free asset but if all.my pensions are outside my estate it should be fine.

I've just been sorting my will out and had to look this up to find out the estate value.  Death in service paid to partner or nominated person is outside of probate.  Same with our pensions.  So essentially we are currently looking at the value of the property and any savings going through probate which for us will be outside IHT when it goes to the kids.   

I think we used to have decreasing term insurance on our mortgage, I need to check it again.  Its still subject to probate but decreases as the mortgage goes down.

savingholmes

Thanks Sandy, Mark, WD, Jwil, Lucielle, 

I'd love an art studio WD and but I'm sure I'd still 'play' at home too. I had hoped to convert my garage so I had a more 'separate' studio but pulled back from that when the work changes were announced. We still don't have the detail on that.

It's pouring down with rain - which wouldn't be so bad - but I need to take my car for an MOT and potentially leave it and walk both ways to come home and go get it. It's not the kind of place you'd want to wait around in. I also have a Mr A delivery coming which I'd booked before I was given the MOT slot. Plus they are closing part of the main road near where I live today...  And it's a work day... However, after writing that it looks like I could get a bus which would be ideal in this weather. I also have the bus app so can buy a ticket using that. The main issue then is the roadworks but if it at least got me most of the way that would be good. I'll get to test out a new coat.

I need to remove compost and other carp from my car but it's not exactly ideal weather for that! Ah well, I feel better knowing I have options.

I'd best go and get dressed before Mr A turns up.

savingholmes

Yesterday - I found a small extension cable so I could wash my clothes. When that finished I plugged in the spare fridge freezer and moved the important stuff across to it. I then switched off the other one and got rid of the inches of ice and left it off overnight. Naturally I couldn't find wherever I'd put the glass shelves for the spare freezer but managed somehow. Relieved that's sorted. I've just switched it back on. I also cleaned my kitchen counters and did the dishwasher so that was positive. 

lucielle

Well done on the cleaning. Monday is our designated cleaning and bed change day. I’ll probably hoover again on Thursday. Hope you get sorted with the buses etc. 
L