Neglect, or choosing the path of least resistance can often be the reason for losses that over time can add up to substantial amounts. Here are a few things that could reduce your outgoings, cost or tax bills that are relatively easy to sort out.
1. Review any mortgages you have
Getting the best rate available on your mortgage is something we would all set out to do, but mortgages usually last for a very long time and things change over that time. Our circumstances will hopefully improve over time and interest rates are often changing. If you have had a mortgage on a property for a while, it could well be worth revisiting it. As an example, our mortgage team recently reviewed a mortgage for a client and managed to get a significantly better rate. Their repayment came down by almost £400 per month, saving them £24,000 over 5 years.
Speak to our mortgage team for more information.
2. Ring-fence assets with a discretionary trust
Although this isn’t going to be money you save that you get to enjoy, it could well be the most significant saving you make. Inheritance tax planning is often neglected, or people put it off as long as possible, perhaps because we don’t like to be reminded of our own mortality, but the savings that can be made from effective planning in this area are often the highest. In the UK you can ring-fence up to £325,000 in a discretionary trust, which can be added onto the £650,000 that can be passed to a spouse tax free. Taking the amount you can leave to your spouse before incurring a tax bill to £975,000. If you are overseas, there are other structures available, some of which have no cap on how much you can separate from your estate using a trust.
Speak to one of our tax advisers for more information.
3. Use an FX broker when sending money internationally
Sending money overseas is an easy way to lose money. It is a business that is very easy for banks to make a quick buck from and generally people send money because they have to and often the bank is the most convenient option. Using a specialist broker, especially for large transactions such as a house deposit, will save thousands. A small difference in buy and sell price over a large amount adds up to being a lot.
If you have a requirement to send money, speak to your advisor and they will recommend a reputable and fair company to help.
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