one. As the deceased’s wife is
the estate’s main beneficiary
and appears to meet other
qualifications (go to gov.uk and
search for ‘IHTM06013’ for
details) it seems that it will
count as ‘excepted’. So even if
you need to complete IHT400,
it looks as if there will be no tax
to pay. This can be a complex
area; if you still have queries you
may need to see an accountant
or other tax specialist.Q
I am nearing retirement
and am considering
deferring my state pension.
Is it worth it?A
It depends what you mean
by ‘worth it’. If you are
asking whether you can get
more pension over the course of
your retirement by deferring,
the answer is ‘probably not’. The
old deferment rules, which
applied to people reaching stateExtra online
For more on pensions, go to
saga.co.uk/aug-magHave a question?
Email [email protected],
or write to Annie Shaw
at the address on p7. She can
answer questions only on
this page or on our websitepension age before April 2016,
were much more generous than
the current ones. If you put off
claiming your pension then, you
got a generous uplift when
you eventually came to take it.
The new rules are ‘actuarially
neutral’, so the average person
should end up receiving the
same amount over their lifetime,
whether they take their pension
as soon as they can, or wait and
receive slightly more each week.
Since the age at which you are
entitled to claim a pension is, in
any case, rising, it would seem
to make sense to claim your
pension as soon as you can,
particularly if you have
health problems.
Calculations indicate
that you would need to
live a further 1 7 years
after deferring for one
year to make monetary
sense. That said, if you
decide to work past stateQ
Similar queries often crop up. This month, we
look at an aspect of equity releaseI’m considering an equity-
release scheme and have been
told I should be able to raise
more money due to my poor
state of health. Is that true?A
If you’re considering
raising cash in retirement
against your property using
equity release, you also have
a clear financial incentive to
disclose any health issues, as
you could generate more money
from an ‘impaired life’ scheme.
According to brokers Key
Retirement, a 7 0-year-old
who owned a property worth
£300,000 could typically
generate a maximum £128,395from a standard plan if they
were in a reasonable state of
health. But if they smoked, were
overweight and had high
blood pressure, they could get
£142,595, or £14,200 more.
When you take out an equity-
release plan, also called
a lifetime mortgage, the interest
typically rolls up and is repaid
along with the original capital
when you die or go into care.
The shorter your life expectancy,
the sooner the company can
expect to get its money, allowing
it to offer you better terms.
There are few times when
poor health works to your
advantage, but this is one.ZMoney
Frequently asked question
(^2018) I SAGA.CO.UK/AUG-MAG 97
pension age and don’t need the
extra income now, the state
pension might simply attract
higher tax. In that case it could
make sense to defer, especially
if you want a higher guaranteed
income stream in later life or
you come from a family that is
especially long-lived. It is down
to personal preference – but for
Mr and Mrs Average there is
now little or no advantage.
Q
My local bank has closed,
but I have been told I can
pay cheques in at the Post
Office. How does this work?
A
The Post Office has
an arrangement with
most leading banks,
including Barclays,
Lloyds, HSBC and
Halifax, to accept both
cheques and cash for
forwarding to them. For
cheques, you need a bank
paying-in slip and a special
envelope from the counter. Your
deposit may take a little longer
to be credited to your account
than if you paid it in at a branch.
You can also withdraw cash
using a debit card and, if you
qualify, use a pre-authorised
cheque encashment service.
Ask your bank for more details.
For a full list of banks that use
this service, visit postoffice.co.uk/
branch-banking-services.