Comedy Corner A lawyer purchased a box of very rare and expensive cigars, then insured them against, among other things, fire. Within a month, having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy, the lawyer filed a claim against the insurance company. In his claim, the lawyer stated the 24 cigars were lost "in a series of small fires." The insurance company refused to pay, citing the obvious reason, that the man had consumed the cigars in the normal fashion. The lawyer sued. And WON! (Stay with me.) Delivering the ruling, the judge agreed with the insurance company that the claim was frivolous. The judge stated nevertheless, that the lawyer held a policy from the company, which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be "unacceptable fire" and was obligated to pay the claim! Rather than endure lengthy and costly appeal process, the insurance company accepted the ruling and paid $15,000 to the lawyer for his loss of the cigars in the "fires." NOW, FOR THE BEST PART! After the lawyer cashed the cheque, the insurance company had him arrested on 24 counts of ARSON! With his own insurance claim and testimony from the previous case being used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000 fine. LONDON: La Playa, Dashwood House, 69 Old Broad Street, London EC2M 1NA T: 020 7065 2668 W: laplaya.co.uk NEW YORK: La Playa, 475 Park Ave South, 17th Floor New York, NY 10016 T: 212 702 3352 W: laplayainsurance.com CAMBRIDGE: La Playa, The Stables, Manor Farm, Milton Road, Impington, Cambridge CB24 9NG T: 01223 200 650 W: laplaya.co.uk Disclaimer: While every effort is made to ensure the accuracy of information contained within this newsletter, La Playa accepts no responsibility for any errors or omissions. Registered in England, no 3605982 Authorised and regulated by the Financial Services Authority news from the beach beach life LA PLAYA p la ya LA PLAYA p la ya Autumn 2010 La Playa: Insurance with Intelligence Apparently a true story, which won First Place in a USA Criminal Lawyers Award Contest! I fought the Law and... From Beverley Glock at Splat Cooking (celebrity chef and children’s cookery expert for The Times and Ocado) splatcooking.net Recipe: Healthy Blackcurrant Chocolate Cupcakes For the icing: • 150g soft butter or margarine • 150g caster sugar • 3 eggs • 150g self-raising flour • 1 tablespoon good quality cocoa powder • 150g blackcurrants • 1 courgette or beetroot, grated. A healthy version of chocolate cupcakes using blackcurrants, beetroot and courgettes - all in season at the moment. Encourage children to help all the way through this recipe - the only thing adults need to supervise is putting the cakes in and out of the oven and heating through the blackcurrants. Instructions: 1. Preheat the oven to 180 º c/Gas Mark 4, and line a 12 hole muffin tin with cupcake cases. 2. Cream the butter and sugar until pale and fluffy. 3. Add the eggs and flour, sieve in the cocoa and mix well. Gently fold in blackcurrants and courgette/beetroot. 4. Split between the cupcake cases and put into the oven for 20-25 minutes. 5. Meanwhile heat the blackcurrants and sugar in a small saucepan over a low heat until the blackcurrants ‘collapse’ and the juices flow. Remove from the heat and sieve into a bowl, squashing the fruit down to extract as much juice as possible. 6. Place the fondant icing sugar into a mixing bowl and gradually add the blackcurrant juice, mixing until glossy and sticky. Add a little water if you need to but keep it thick and sticky. 7 . Remove the cakes from the oven, transfer to a cooling rack, ice and eat! Ingredients for 12 cupcakes • 100g blackcurrants • 2 tablespoons caster sugar • 500g fondant icing sugar People like you like us. Passionate. Discerning. Independent. La Playa: Insurance with Intelligence Authorised and regulated by the Financial Services Authority Private Clients: The Club Class Approach to Claims Arts & Entertainment: Cancellation Insurance for Artist Managers Media & Production: The Film Producer’s Day Science & Technology: Your Product-related Liabilities PLUS La Playa Financial Management: Responding to the Budget
Transcript
Comedy Corner
A lawyer purchased a box of very rareand expensive cigars, then insuredthem against, among other things, fire.
Within a month, having smoked hisentire stockpile of these great cigarsand without yet having made even hisfirst premium payment on the policy,the lawyer filed a claim against theinsurance company.
In his claim, the lawyer stated the 24cigars were lost "in a series of smallfires."
The insurance company refused to pay,citing the obvious reason, that theman had consumed the cigars in thenormal fashion.
The lawyer sued. And WON!
(Stay with me.)
Delivering the ruling, the judge agreedwith the insurance company that the
claim was frivolous. The judge statednevertheless, that the lawyer held apolicy from the company, which it hadwarranted that the cigars wereinsurable and also guaranteed that itwould insure them against fire,without defining what is considered tobe "unacceptable fire" and wasobligated to pay the claim!
Rather than endure lengthy and costlyappeal process, the insurance companyaccepted the ruling and paid $15,000to the lawyer for his loss of the cigarsin the "fires."
NOW, FOR THE BEST PART!
After the lawyer cashed the cheque,the insurance company had himarrested on 24 counts of ARSON!
With his own insurance claim andtestimony from the previous casebeing used against him, the lawyer wasconvicted of intentionally burning hisinsured property and was sentenced to24 months in jail and a $24,000 fine.
LONDON:La Playa, Dashwood House, 69 Old Broad Street, London EC2M 1NAT: 020 7065 2668W: laplaya.co.uk
NEW YORK:La Playa, 475 Park Ave South, 17th FloorNew York, NY 10016T: 212 702 3352W: laplayainsurance.com
Disclaimer: While every effort is made to ensure the accuracy of information contained within this newsletter, La Playa accepts no responsibility for any errors or omissions.
Registered in England, no 3605982 Authorised and regulated by the Financial Services Authority
news fromthe beach
beach life
L A P L AYA
p l a y a
L A P L A Y A
p l a y a
Autumn 2010
La Playa: Insurance with Intelligence
Apparently a true story, which won First Place in aUSA Criminal Lawyers Award Contest!
I fought the Law and...From Beverley Glock at Splat Cooking (celebritychef and children’s cookery expert for The Timesand Ocado) splatcooking.net
Recipe: Healthy BlackcurrantChocolate Cupcakes
For the icing:• 150g soft butter or
margarine
• 150g caster sugar
• 3 eggs
• 150g self-raisingflour
• 1 tablespoon goodquality cocoa powder
• 150g blackcurrants
• 1 courgette orbeetroot, grated.
A healthy version of chocolate cupcakes usingblackcurrants, beetroot and courgettes - all in seasonat the moment. Encourage children to help all the waythrough this recipe - the only thing adults need tosupervise is putting the cakes in and out of the ovenand heating through the blackcurrants.
Instructions: 1. Preheat the oven to 180ºc/Gas Mark 4, and line a 12 hole muffin tin with cupcake cases.
2. Cream the butter and sugar until pale and fluffy.
3. Add the eggs and flour, sieve in the cocoa and mix well. Gently fold in blackcurrants andcourgette/beetroot.
4. Split between the cupcake cases and put into the oven for 20-25 minutes.
5. Meanwhile heat the blackcurrants and sugar in a small saucepan over a low heat untilthe blackcurrants ‘collapse’ and the juices flow. Remove from the heat and sieve into abowl, squashing the fruit down to extract as much juice as possible.
6. Place the fondant icing sugar into a mixing bowl and gradually add the blackcurrantjuice, mixing until glossy and sticky. Add a little water if you need to but keep it thick andsticky.
7. Remove the cakes from the oven, transfer to a cooling rack, ice and eat!
Ingredients for 12 cupcakes• 100g blackcurrants
• 2 tablespoons caster sugar
• 500g fondant icing sugar
People like you like us. Passionate. Discerning. Independent.
La Playa: Insurance with Intelligence
Authorised and regulated by the Financial Services Authority
Private Clients: The Club Class Approach to Claims
Arts & Entertainment: Cancellation Insurance for Artist Managers
Media & Production: The Film Producer’s Day
Science & Technology: Your Product-related Liabilities
PLUS La Playa Financial Management: Responding to the Budget
Welcome to our Autumn newsletter! I hopethis finds you full of whizz-bang after agreat summer.
Insurance industry headlines are currentlydominated by the harsh Financial ServicesCompensation Scheme (FSCS) levy slappedacross the industry by the FSA in the wakeof Payment Protection Insurance mis-selling- largely by the much-maligned banks andcredit brokers. Our contribution, forexample, has increased by 900% - whichleaves me smarting somewhat as aninnocent party!
We’re delighted that La Playa New York isnow open for business on Park Avenue – auseful facility for UK and US companiesdoing business both sides of the Atlantic,and of course for our many private clientswith homes either side of the pond.
As I write, we’re about to launch our newwebsite. Do join Beachcomber, the newcommunity area that brings together ourcolourful clients and friends for mutualbenefits.
Live long. And prosper.
Mark Boon, Managing Director
Welcome
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Private Clients DivisionDivision Head: Matthew Mullee
A personal and responsive service for private clients. We specialise in advice and cover for period, listedand modern homes, vehicles, yachts and motorboats, wine collections, antiques, jewellery and art on aworldwide basis.
laplaya.co.uk
Join Beachcomber!Sign up for our new online community, Beachcomber, whereyou’ll benefit from:
• Great offers from La Playa clients and friends• Risk management info-snacks by email
PLUS we’ll send a life-protecting mosquito net to Africa foreach new joiner. Coming soon at laplaya.co.uk!
“When you get good service it’sworth shouting about”
…in the words of one of our clients. The greatest compliment you can pay usis to tell your colleagues and friends –and we’ll send you a Fortnum and Masonhamper when new private clientsmention your recommendation.
This is how claims shouldwork! We contacted a clientabout his policy renewal, andfound him stranded in Veniceby the ash cloud from the
Icelandic volcano. Reminding him that his home insurance withChubb included travel cover, we suggested he make a claim.
Returning home, he submitted receipts for his additional costs,including Orient Express tickets at £3,190, taxis, meals, books,
clothing and even a sightseeing tour. He’d bought a shirt and tie,suitcase and suit carrier to comply with the Orient Express dresscode. The total amount claimed was £4,739.
Chubb deducted the clothing and books but paid for the suitcaseand five extra days’ house-sitting fees and offered £400 for traveldelay. After the excess was deducted, a total payment of £4,372was agreed. The client was delighted to see this credited to hisaccount within 24 hours of providing his bank details.
Beauty From The Ashes
What’s Hot AtThe Auctions
Chinese ceramics and worksof art are extremely hot atthe moment, and prices atauction are sky-high withmost returning to Chinesecollectors. The economicclimate is encouraging themto bring home high qualitypieces exported in 18th and19th centuries.
sworder.co.uk
Chinese porcelain Deity, c. 1900, 69cm, Sold: £13,800
Last year, the owners of a grade II listed property returned home,struggled to close the door and were suddenly faced with 3 maskedmen. The offenders had screwed a spring-loaded catch to theoutside of the closed door so that once the alarm was unset by theowners, they could gain entry and surprise them. Watch out forunexpected fittings on your door frame!
Headline Numbers:
coffee taster’s tongue insuredby us
visits by the La Playa posse toCambridge Arts Theatre
Fortnum & Mason hamperbaskets delivered to happyclients who recommended us tofriends
minutes: a record set by GarethCotton for settling a claim:reported 2.53pm, settled withSterling Insurance at 3.23pm!
people: the capacity ofArtichoke’s spectacular MagicalMenagerie square carouselinsured in Milton Keynes
minutes: audience spellboundby Julie Andrews’ live concert atthe O2 Arena – insured by us
bees insured at the City ofLondon Festival’s Honey House
5
1
4
49
140
30
10,000
The top-end Central Londonproperty market is faring farbetter than expected post-recession, after a spectacularrecovery from the 2009 pricedrops. Some prices inprestigious boroughs likeWestminster, Kensington andChelsea now stand at 6.5% and10% higher than July 2007. Thedrivers? Record low interest
rates, a severe shortage of high quality property on the market,European buyers cashing in on the weak pound, and a propertymarket ravaged by the recession. A clear trend is the conversion
of commercial premises back to residential properties and blocksof flats; freeholders perceive the residential market as morelucrative.
Potential hot spots include Bayswater, with many small hotelsbeing converted into up-market flats, and the Hyde Park estatearea, in our opinion one of the most under-valued areas inCentral London.
Identity fraud is likely to accelerate as organised criminals targetthe rich, according to a report by Experian. The number of IDfraud victims rose by 20% in 2009. Company directors andbusiness owners were most at risk, and London remained the
hotspot, with Salford, Manchester and Cardiff also vulnerable. Bealert, check your bank statements and make sure your homeinsurance covers costs incurred by identity fraud – all La Playapolicies do.
Property Market News Tim Macpherson, carterjonas.co.uk
These value drivers are all based on market forces. Avoid over-paying on your insurance by insuring the ‘reinstatement value’rather than the ‘market value.’
Money-Saving Insurance Tip:
Identity Fraud Set To Soar
'The Magical Menagerie' by La Machine, produced byArtichoke as part of IF Milton Keynes 2010.
Photo Copyright: Matthew Andrews.
This newsletter and most policyinformation is available in largeprint – please let us know howwe can make the informationmore accessible to you.
Private Clients Arts &Entertainment
Science & Technology
La Playa: Insurance with Intelligence
Media &Production
NEWS
Matthew Mullee, Private Client Director
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John Foster, Sworders FineArt Auctioneers
Spot The
Catch!
“I was absolutely bowled over to receiveyour hamper today. It's beautifullyluxurious and very nice indeed. And notonly that, I have been toiling over safelywrapping some pictures to go by post -the F&M box and packing are perfect forthe job. What timing! Thank you so much.The friends we recommended to contactyou have a rather similar situation toours, with a lovely old house. I'm so gladyou were able to help them. Thank youagain for a lovely surprise.”
Specialist insurance for creative businesses: media and mediatech, film and TV production, postproduction, editing, broadcast technicians (camera/light/sound), graphic design, multi-media, photography,marketing & PR, studios and film promotion & distribution.
Welcome to new clientsWe’re delighted to welcomenew clients including:Djay Southwest, Dooper TV, Elixir Media Productions, Huntley Visual Communications, K H Sound & Lighting, The MillStudio, Patchwork PlanetProductions and TuttifruttiProductions.
Stuart Osborne, Head of Film & TV Practice
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Media & Production DivisionDivision Head: Stuart Osborne
Working in a busy and specialist environment,your business is exposed to a unique range ofrisks. It’s important to work with a specialistbroker who really understands you and cansupport you with professional advice as youplan, create, edit and roll out your work.
06.00 Set off for the airport for locationshoot. Question: does yourinsurance cover internationallocation shoots? Both the travelelement and your liabilities?
07.00 Remember you’re travelling withhired kit. Question: does your policycover hired-in equipment – and anyloss of continuing hire charges?
11.00 Arrive at location. Question: haveyou done a camera and stock test?Without it your insurance may beinvalidated…
14.00 Shoot is delayed for 2 hours bystorms – this’ll cost you an extraday. Question: did you consideradverse weather contingency cover?
17.00 Equipment shorts due to powersurge – some material in the can islost. Question: do you haveNegative, Film and Videotape coverin place?
18.00 The extras’ day wages have goneastray. Question: do you have coverfor cash in hand?
It’s a wrap! But when the red carpet’s rolledout for the premiere… do you have Errors andOmissions insurance in case someone takesoffence at your work? Talk to us about ourexclusive policy Production Portfolio, whichcan cover all your risks under a single policy.
Corporate video productioncompany Green Field Televisionwas formed in 1991, and hasdeveloped specialisms in thetravel, medicine and oil andgas sectors. They also haveexpertise in foreign languagelocalisations of video and web-based media. Creative Directorand principal cameraman PaulOsborne acknowledges that it’san evolving sector: "Most ofour output is now destined forthe web and we’ve been quickto position ourselves to servicethat demand."
Recent shoots includeconstruction projects in Dubaiand Kuwait - high productionvalue, short form promotionsusing camera tracking, dollyand jibs, destined for webdelivery. “Our in-housedesigned tracking kit meanswe can shoot more setupseach day, and more efficiently”.
greenfieldtv.com
Client Spotlight:Green Field TV
Check your policy conditions– how often are you requiredto back up your tapes or film?Every 24 hours? 48 hours? If you haven’t complied, yourinsurer may refuse to pay fora reshoot.
Tip:
Backing Up
The Film Producer’s DayManaging Risk at Every Turn
06:00
07:00
11:00
14:00
16:00
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18:00
For more information, contact:Stuart Osborne T: 020 7065 2669 E: [email protected]
Our specialist practice for the performing arts and live events, providing expert advice and cover for artistsand touring companies, agents and artist managers, festivals, venues and promoters, and dance schools.
Welcome to new clientsWe’re delighted to welcomenew clients including:
Amos Trust, CambridgePhenomenon, CrowboroughArts Festival, EmeraldEnsemble, Ghost Forest ArtProject, HuddersfieldContemporary Music Festival, Metis Arts, Mid Wales Opera, Festival, NE33 Dance AndFitness, Radiowaves Schools,Red Hat Salsa, Sark FolkFestival, Ventnor FringeFestival andYoungorchestras.com.
Mark Boon, Managing Director
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Arts & Entertainment DivisionDivision Head: Mark Boon
The thought of a handinjury to a key musicianbrings many artistmanagers and agents outin a cold sweat. If, likemany agencies, yourbusiness relies significantlyon income from particular
artists and writers, it’s worth considering the impact of a short,medium and long-term illness or injury on your revenue.
Without breaking the bank, it’s possible to identify your mostvulnerable spots and mitigate your exposure with some well-designed cancellation insurance.
What is Cancellation Insurance?Cancellation Insurance replaces commission lost as a result of theinability of or loss of opportunity for artists to perform. It can alsohelp with efforts to reduce further losses (eg: chartering a plane toget around a transport strike). However, pre-existing medicalconditions, lack of interest/ticket sales, financial insolvency andpencilled dates without letters of agreement are not covered.
How much should I insure?It may not be worth insuring every artist for every contingency –most managements absorb attritional losses of around 5% ofcommission in a normal year. You know where you’re most exposed.
• Artists/events: you could insure only your biggest earners ormost lucrative events.
• Period: you can choose the policy period - 12 or 24 months,or specific tour dates.
• Perils: look at your contractual obligations – which perilswould hit hardest? Illness/injury? Venue issues like flood, fire,loss of power, strike? Transportation – mechanical breakdown,strike, weather?
You could simply cover your top 5 earners, eg:
Insuring Your Top Earners
Pioneering physical theatre company Earthfall celebrated their20th Anniversary in style with a nomination for a BAFTA CymruAward for GRAVITAS - POSTCARDS, an 11 minute short filmabout three couples, directed by Chris Forster (The Bourne Trilogyand Greenzone). Earthfall was formed in 1989 by Jessica Cohenand Jim Ennis, forging radical, issue-based choreography with
live music and strong visual imagery, and has now toured 26original productions. Their next production The Factory is basedaround Andy Warhol’s Silver Factory and explores the dynamics,emotion and energy triggered by the subterranean undergroundarts scene during the late 50’s/60’s New York City.See east47st.com & earthfall.org.uk.
Client Spotlight: Earthfall
Artist Profession Agency Income £Hepburn Actor 80,000 Shakespeare Writer 160,000 Lanza Singer 140,000 Karajan Conductor 30,000 Nijinsky Dancer 20,000
Total 430,000
How much does it cost? The premium is a rate percent of the total sum insured. Rangingfrom 1% to 3%, factors include artists’ ages, cancellation historyand level of income. On the example given, the premium wouldbe between £4,300 and £12,900.
Be smart: identify your weak spots, quantify the potentialimpact of cancellation and get specialist advice to make sureyou don’t pay more than you need to.
For more information, contact:Paula Hawthorne T: 01223 200654 E: [email protected]
Cancellation insurance for artist managers, literary and theatrical agents
Science & Technology DivisionDivision Head: Matthew Clark
To build watertight insurance protection around your products, it’simportant to identify your liabilities towards third parties.
There are three key areas of protection to consider:
1. Products Liability Insurance: protects you when a third partyalleges that your products have caused them injury or damagedtheir property. The insurance pays for your legal defence andalso meets court-awarded compensation payments in favourof the aggrieved party. The policy will not generally cover you ifthe third party’s loss is purely financial; financial losses, like lostrevenues or profits from cancelled orders, are excluded by manyproducts liability insurers.
2. Financial loss insurance: covers your legal liability for financialloss suffered by a third party arising from your defectiveproducts. It’s sometimes possible to include cover for an allegedbreach of contract terms. Remember, the policy responds toclaims brought by third parties – which could be yourcustomers, or customers of your customers.
3. Product guarantee insurance: covers your liability for thecosts of removal, repair, alteration, treatment or replacement ofproducts which fail to perform their intended function. Somepolicies offer pre-loss Crisis Management consultancy/adviceand 24-hour incident response with expert onsitebackup/advice.
Product Recall InsuranceThis summary would be incomplete without mention of ProductRecall Insurance, which generally arises from a contractualundertaking rather than from negligence. Here the policy pays forthe reasonable and necessary costs of recalling defective productsthat have already been delivered. You’d use it if you needed to recalla product to avoid liability, or where there’s a risk of injury ordamage if you didn’t recall it.
Practical Tips
1. Limit your liability under contracts you sign wherever possible(seek legal advice).
2. Ensure the appropriate insurance cover is in place (ask us!).
3. Plan, plan, plan – nobody plans to fail, but you really shouldplan for disaster.
Conveniently located at the hub of Cambridge’s flourishing technology scene, our specialist team provides adviceand cover for businesses in Life Science, ICT, Nanotechnology, Cleantech and other emerging technologies.
Whose Fault Is It Anyway?Your product –related liabilities
Cambridge and St. Neots-based BrightVisions havebeen providing both strategic and practical ITexpertise and support to firms across the East andSouth East of England since 2003. Key servicesinclude IT consultancy, infrastructure design, networksecurity, data backup and a range of hosted services
including domain management, hosted email, Blackberry andweb hosting. BrightVisions are developing a Cloud basedenterprise customer and project management system usingtheir own knowledge management tool, Focal Point.brightvisions.co.uk
Client Spotlight: BrightVisions
Welcome to new clients
Matthew Clark, Divisional Director
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Women 4 Technology
Sponsored by La PlayaWomen 4 Technology has nowlaunched in London, providinghigh level and stimulatingnetworking events for womenin senior roles in technology.For dates of events inCambridge and London, see
baileyfisher.com/events.php
For more information, contact: Hanna Beaumont T: 01223 200664 E: [email protected]
We’re delighted to welcomenew clients including: Active Financial Systems,AlphaVeloptica, B2net, Cambridge Phenomenon,Easylab, PneumaCare, Project D, Sitec InfrastructureServices, Sky MedicalTechnology and Total Scientific.
La Playa Financial ManagementDivision Head: Mike Palmer
Mike Palmer, Division Head
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Following a tough May Budget, you can still mitigate the painwith some smart planning – and the flexibility in pensions is agenuine silver lining.
Income tax: frozen allowances and thresholds will mean morehigher rate tax payers. If this includes you, let’s talk aboutpensions, ISAs, VCTs and other tax efficient investments to helpmitigate the impact.
Capital Gains Tax (CGT): under the new 18% and 28% regime,consider:
• Maximising the use of losses and the annual CGT exemption• Careful taxation planning between couples • Using ISAs and VCTs to reduce your CGT exposure
Savings: with the Child Trust Fund being phased out and CGTrates up, think about:
• Use bare trusts to help fund children’s/grandchildren’seducation
Trustees: with income tax increases to 50% followed by aneffective 55.5% increase in CGT, you may want to discuss tax
efficient investment using collectives and investment bonds (UKand offshore).
Pensions: drawing benefits will become more flexible. Despiterestrictions on tax relief, there are still opportunities for high-earners to make substantial pension contributions (see articlebelow).
Estate Planning: no changes to the nil rate Inheritance Tax band,so for assets worth over £650,000, consider:
• A Discretionary Gift Trust: gives control over the destinationof benefits.
• A Discounted Gift Trust and Loan Trust: for gifting but stillreceiving income (see article below)
• A life assurance policy placed in trust: to cover IHT on yourhome
• A spousal by-pass trust
To talk through the best ways to adjust your finances around thelatest budget, do get in touch:
A full range of financial services for • Private Clients: life assurance and family protection, pensions, investments and tax advice • Business: business protection and employee benefits
Responding To The Budget
Five Tips For Successful Estate Planning Patrick Appleton at HC Solicitors hcsolicitors.co.uk
1 Wills• Use your transferable nil
rate bands: a widowremarrying has an extraone available
• Maximise IHT exemptproperty – use theexemption twice (called‘double-dipping’)
• Care Home Fee planning– use a trust to protectat least half your house
2 Investments• Maximise IHT exempt
property – agriculturaland business assets, AIMshares and commercialwoodlands can becomeexempt after two years’ownership
3 Lifetime Gifts• Use the annual
allowances • Normal expenditure out
of surplus income is IHTfree
• Consider Loan Trustsand/or Discounted GiftTrusts – you keep a 5%annual ‘income’ and it’sincome tax free
4 Deed of Variation• This can allow you to
divert inherited propertyinto trust. You can thenbuy it from the trust andthe trustees can lend youthe money back. Repayingthe loan on your deathreduces your estate for taxpurposes, and you’ll haveenjoyed the house and thecash in your lifetime
5 Pensions• Ensure your fund is
performing optimally –take financial advice
• Use tax relief – divertfunds into your pensionfund as the Governmentwill add 20%, 40% or50% extra, even if fundsare paid in by someoneelse
1 2 3 4 5
La Playa Financial Management LLP is an appointed representative of PB Financial Planning Ltd which is authorised and regulated by the Financial Services Authority.
Fund Focus
If you’re looking to invest in asustainable future, this sector is areal growth area.
The new breed of ‘sustainabilityfunds’ invest in global companiesset to benefit from climatechange, population growth andscarcity of resources.
Unlike the negative screeningused by traditional “ethical”funds, these will invest incompanies profiting from“sustainability” themes - such asrenewable forestry.
