Marrige And Devorce Flashcards
Considerations for what to do with devorce settlement
Has now
Will need
B
-income needs
-capital needs
-capacity for loss
A
-emergency fund
N
-investment goals
-objectives
-reduce IHT
T
-priorities
T
-use of allowance
-ISA
-pensision allowance
-carry forward
E
-willingness to gift
R
Regulation and state provision
Explain no gain no loss
Transfer of assets from married couple or in devorce settlement.
Assets transfer with no CGT
There is no time limit on application when under devorce settlement
Recipient takes on base purchase cost
When sold, use their own exempt amount and tax at their own marginal rate.
Discribe pension offseting
Pension value is offset against other assets in devorce
The pension remains intact, and a larger share of assets is passed over instead.
No impact on LTA
No impact due to death or remarriage
DIS nomination can be overturned
DB- CETV calculated as not benefiting from PCLS, spouse pension, or DIS.
DC-loss of benefits expressed as a percentage
Describe pension attachment order
Allows receipt of income/lump sum on retirement or death of other party
Other party retain ownership
The court can direct some benefits to the recipient party
Income paid as a percentage with separate order for each pension
Lumpsums paid as percentage in addition to or for a reduced income
Nominee can be decided by court and can be recipient.
Tax is paid by owning party and receiving cannot reclaim any.
Lump-sum Death in service tax-free
Spouse death in service pension taxed at recipients marginal rate
