What Is A Payment Protection Plan?Written by John Mussi
A Payment Protection Plan is an insurance cover you would normally take out when you apply for a loan in order to have peace of mind because no matter how healthy you feel today, nobody knows what lies round corner tomorrow. Nobody is immune from unemployment or illness, which is why Payment Protection Plans are offered as a means of protecting loan payments.Payment Protection Plan cover can be added to your loan giving you peace of mind and security of knowing that - in event of any unforeseen circumstances - your financial commitments are protected. Each month you will be asked to make a small additional insurance payment. This extra payment will be included with your loan repayment. This small amount paid will ensure that if you lost your job, became ill, or unexpectedly pass away your loan repayments will be paid for you. If unthinkable happens and you die before your loan has been fully repaid rest assured that Payment Protection Plan will cover outstanding balance of your loan. Your family will not be left to repay it for you.
| | Residential Property AbroadWritten by The Chesterfield Group
It is increasingly common for individuals to own more than one property and in many cases first investment after family residence is in a holiday home. Whether you are buying a place in sun, a country retreat or a city centre apartment, if it is in a foreign country you will be exposed to an unfamiliar legal system and to taxes in country concerned. It is therefore important, even before a contract is signed, to decide whether to make purchase in your personal name or through a company. To change course later will always be expensive. It is however usually possible to reduce exposure to tax.Buying in a personal name Assuming property is for personal occupation, form of tax, which is most easily avoided, is estate or inheritance tax. The death of person in whose name property is registered will normally give rise to a liability which may exceed 40% of value at time and tax will usually have to be paid before property can be sold or transferred. Buying in a corporate name If, however, property is purchased in name of a company, death of owner does not create a need to transfer property. The property will be owned by company, and it is shares in company which will form part of owner’s estate and not property itself. If company is formed in an offshore territory, British Virgin Islands for example, which does not impose taxation on non-residents, objective of avoiding foreign death taxes will have been achieved. There is a bonus, in that name of owner of company need not be a matter of public record, thereby maintaining confidentiality.
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