DEAR TRICIA
Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help
Q We are considering paying off some of our son’s mortgage. What would be the financial implications regarding the ‘seven-year rule’ inheritance tax cut-off period if the cheque was made out, not to our son, but the mortgage lender?
A For inheritance tax purposes the rules remain the same. This is still a gift to repay your son’s mortgage loan. After seven years have elapsed following the gift, the full amount will be outside of your estate and there will be no tax liability. Q I’ve checked my pension statement and have realised that my company doesn’t seem to be paying regular monthly contributions into my fund, even though it is being deducted from my salary. Should I contact anyone about this?
A Yes – contact your employer directly. It’s probably just an administrative error. If you have any concerns contact the Pensions Advisory Service at pensionsadvisoryservice.org.uk or call 0800 0113797. Q We have Power of Attorney for our mum who has vascular dementia. When are we able to start making decisions and acting on her behalf? She gets very agitated that we are trying to steal her money when we just want to ensure her bills are paid on time.
A A financial affairs and property LPA must be registered before it can be utilised. However, you don’t have to wait until your mum loses her mental capacity before using it. The LPA will come into effect as soon as it is registered.
Q I think a website I have bought something from is a fake. The goods haven’t arrived and they’re not replying to emails or phone calls. Any advice?
A If you have lost money, then it’s fraud, and you should contact the police to notify them that a crime has taken place. Provide as much detail as you can into how the fraud took place. If you paid by credit card it’s likely you will get your money back. Secion 75 laws protect credit card purchases over £100. You will need to contact your credit card firm to claim a refund.
Q A friend is really struggling with their finances. Unfortunately, I’m not in a position to help out as I can only just manage myself. Where would you advise they turn for help?
A If they are unable to keep up with debt repayments or have arrears on bills they will need to contact one of the free debt advice charities such as Citizens Advice or StepChange Debt Charity (0800 1381111), or the National Debtline 0808 8084000. If they need help with budgeting, there are tools online such as at moneyadvice service. org.uk/en/tools/budget-planner.