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info@eastcorkjournal.ie East Cork Business Post When Should You Review Your Life Insurance?
rent needs. There
are numerous
by GERARD O’BRIEN Protection
is one of
the most important ele- ments in financial plan- ning. It is the practical way to ensure
that, if
the worst were to hap- pen, your family would have enough money to maintain their lifestyle. If you’ve had the same life insurance policy for a while, chances are that your needs have com- pletely changed. Wheth- er you’ve gotten married, had kids or your kids have left home, it’s important that your life insurance policy reflect your cur-
reasons why your existing cover may no longer be appropriate for you. Be- low is just a selection of some of the reasons why you might need to review your cover more regular- ly:
Marital Status Changed? Have
since taking out
you married your
original policy? Are you single now through death or separation? You may need to review your life insurance. Do you still need cover, are your chil- dren no longer depend- ent on your income? If so then it might be ap- propriate to cancel your cover. However, if you are now a lone parent with dependent children
then you may have to in- crease your cover. As the sole earner your children are 100% reliant on you. What would happen if your income
stopped?
You may need to look at life insurance and income protection.
Children Expecting a baby? Do
you now have more chil- dren than when you took out your original cover? You need to make sure your children are finan- cially cared for if some- thing is to happen you or your partner. While a mortgage protection pol- icy will clear your mort- gage, it will not leave a cash lump sum to pay for the day to day needs of your child. This is what life insurance is for.
Buying a Home or moving Homes You must
take out a
mortgage protection poli- cy when you buy a family home. We would always advise putting a separate life
insurance policy in
place too to protect your family. Mortgage protec- tion will take care of the house; life insurance will take care of the people you love in it.
Changed Jobs Do you have a new job? Or maybe increased income through a promo- tion? As your income has risen, you may need to in- crease your life cover too. Remember life insurance is
there to replace your
income lost on death. If there is more income to replace, then you need more life insurance. On
Legal Matters Succession Partnerships
trained farmers and to transfer ownership of the farm within three to ten years to that young trained farmer.
by KAREN WALSH The register of Succes-
sion Farm Partnerships (SFP) maintained by the Department of Agricul- ture, Food and the Ma- rine is now open to ap- plications. This is a very positive policy measure to encourage succession and inheritance planning among farm families, leading to the eventual transfer or partial transfer of farm assets to a succes- sor or successors. The
purpose of the
scheme is to encourage older farmers to form partnerships with young
It allows
for both intra-farm part- nerships and inter-farm partnerships. The
partners are
entitled to an annual €5,000.00 tax credit di- vided between them in accordance with the prof- it sharing ratio specified in the agreement. The credit can be claimed for a maximum of five years from the date in which the partnership is registered. The credit is not available in the year where the successor has reached 40 years of age. The Income Tax credit
is not restricted to with- in family situations, but
also allows for either the gift or sale or partial gift or sale of the farm assets involved in the partner- ship. This may be rele- vant where the Succes- sion Farm Partnership is formed between two un- related persons. In order to claim the €5,000.00 Income Tax credit
year, the
for the 2017 tax partnership
must be registered with the Department of Ag- riculture, Food and the Marine Partnership Reg- istration Office as a Suc- cession Farm Partnership before
the 31st of De-
cember 2017 where the tax year is the calendar year or before the 31st
of
March 2018 where the tax year is April to April. In order to be regis-
tered and to avail of the tax credits and grants available, the partnership must comply with all of the following conditions:- 1) The farm partner- ship must have at
least
two members, each of whom is a natural person which means that
they
cannot be a limited com- pany.
2) Of the members of the partnership, at
least
one partner must have been farming on at least three hectares for a mini- mum of two years imme- diately before the forma- tion of
and of the others, each partner must have
the partnership an
agricultural qualification (i.e. the Green Cert or its equivalent), be entitled to at least 20% of the prof-
Tel: 021 463 8000 • Email:
info@eastcorkjournal.ie • Web:
www.eastcorkjournal.ie
its of the partnership and should not have reached 40 years before registra- tion.
3) Approval must be
obtained from the Min- ster for Agriculture for the business plan of the farm partnership before an application for regis- tration is made. 4) The
enter into an agreement with the
farmer must successor to
transfer at least 80% of the farm assets to the successor within 10 years of the commencement of the partnership. The transfer can begin after year three. 5) The terms of
the
partnership agreement shall include:- (a) The farm assets of the partnership on the on
the day of application for registration. (b) Any conditions to
which the transfer will be subject. (c) The year in which
the proposed transfer may take place. (d) Any other terms
agreed between the farmer and the successor such as the conduct of the farming trade or the creation of any Rights of Residence in dwellings on the land. If at least 80% of the
farm assets are not trans- ferred within the ten year deadline, there will be a clawback of the tax cred- its claimed. Both parties will need
separate legal representa- tion in relation to such a transaction and it is im- portant that both parties seek advices from an ac- countant or tax consult- ant and their financial
eastcorkjournal
institution if applicable. Karen Walsh, from a
farming background, is a solicitor practicing in Walsh & Partners, So- licitors, 17, South Mall, Cork
and author of
and the Law’. Walsh & Partners also specialises in personal injury claims, conveyancing, probate and family law. Email: info@walshan-
dpartners.ie Web: www.walshand-
partners.ie Disclaimer: While
every care is taken to en- sure accuracy of infor- mation contained in this article, solicitor Karen Walsh does not accept re- sponsibility for errors or omissions howsoever aris- ing, and you should seek legal advice in relation to your particular
circum-
stances at the earliest pos- sible time.
@eastcorkjournal / #eastcorkjournal
(021-4270200), ‘Farming
the other hand, if you have experienced a re- duction in your income, then maybe you can save money by reducing your cover.
Given up Smoking If you were priced as a smoker when you com- menced a plan but have since given them up (and have not smoked in the last 12 months) this can be one of the biggest fac- tors
in calculating your
premium. In some cases, premiums can reduce by up to 50%, if this is the case, it is well worth get- ting up to date quotes.
Shop around A survey by the Life As- surance Company, Royal London, found that you could pay as much as 21% more for Life Cover
if you buy it through your bank rather than from a Broker. Royal London compared the price various life
of assurance
policies sold by AIB, EBS Building Society, KBC Bank and
Permanent
TSB to those sold by bro- kers in Ireland and they found that significant savings could be made by shopping around. Other factors, such as the Gen- der Directive in Decem- ber 2012, or simply the competition between life companies, could mean that it is possible for you to reduce your monthly premium without com- promising on the quality of cover. At Heritage Wealth, we
offer a wide range of pro- tection plans, enabling our customers to choose an arrangement
that
matches their needs and circumstances. Gerard O’Brien LL.B LL.M CFP® QFA is a Certified Financial Planner and the Own- er of Heritage Wealth Management, a Finan- cial Planning practice based at 27 Cook Street, Cork. For more
infor-
mation, contact Gerard at
gerard@heritage-
wealth.ie www.herit-
agewealth.ie Disclaimer: All data and information provid- ed within this article is for informational purposes only. Heritage Wealth Management
Limited
makes no representations as to accuracy, complete- ness, suitability, or valid- ity of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries, or damages arising from its use.
Thursday, 9th
November 2017
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