Hot Topic #5

Capital Acquisitions Tax

If you are a business owner, you should also take a close look at the implications of Capital Acquisitions Tax if you are thinking about passing on your business to your family when you die. 

Inheritance tax can become a real burden where financial resources are tied up in a business.

Did you know?

• Your children can only inherit €280,000* from you tax free. 

• Anything in excess of this, per child, is taxable at 33%.

• Leaving assets to your children may result in them having to pay Inheritance Tax.

Source: Capital Acquisitions Tax Consolidation Act 2003 (as updated). *Group 1 Threshold available from 14 October 2015.

If you do not plan ahead, your family could be faced with a difficult decision between having to sell the business or borrow the money to pay the tax liability.

There are a number of solutions to this and Gift or Inheritance tax planning allows you to plan for the tax liabilities which could arise, thus ensuring that the business won’t have to be sold off to pay the tax bill.

Hot Topic #4

Do you see life through rose tinted glasses?

Most of us think that premature death, serious illness, accident or injury will never happen to us … Sadly, the chances of prematurely dying, suffering a serious illness or having an accident at a young age are a lot higher than you may think.

Statistics from one of Ireland’s leading insurers for 2015 is quite frightening …

	Life Cover	Specified Serious Illness	Income Protection
No of claims & total amount paid	1,051 claims totalling €103.1 million	763 claims totalling €48 million	3135 claims totalling €53 million
Average amount paid per claim	€66,462	€62,913	€19,380
Average age of claimant	64	53	47

LIFE COVER – GENDER VARIATIONS

·         Men accounted for 2 in 3 death claims with women accounting for 1 in 3

·         Higher percentage of women (48%) died from cancer than men (39%)

·         Heart related conditions were the cause of death for twice the rate of men (16%) than women (8%)

·         Rates for accidental deaths were higher for men at 8% compared to just 3% for women

SPECIFIED ILLNESS COVER - GENDER VARIATIONS

·         Men made up over half (55%) of Specified Illness claims, with women making up 42%

·         Breast cancer was the number 1 overall cause (15%) of all Specified Illness claims. Among women, cervical/ovarian was the second biggest cancer related claim

·         For men, prostate cancer was the main cause of cancer related claims (almost 10% of all specified illness claims) followed by lung and colon cancer

·         Men accounted for 4 in every 5 Specified Illness claims paid for heart related conditions – reflecting the significant gender difference related to heart conditions.

Source for all stats above is Irish Life 2016

Hot Topic #3

Protecting You & Your Business

Have you considered what would happen to your business and your family if you died prematurely?

• What might happen to your shareholding?
• How would your family survive financially?
• How would your business partner react?

This may be something you haven’t given much thought to … and it’s why Shareholder/Partnership and Keyman cover is so important.  It can be paid by the business, with the business or individual getting the benefits.

For further information please give Michael a call on 086 844 0541.

For further information please contact Michael at MK Financial on 086 844 0541.

MK Financial is an independent financial advisor with access to all main Insurance and Investments.

MK Financial has been offering independent, clear, professional financial advice for 18 years.

MK Financial, Boyle Enterprise Centre, Quarry Lane, Boyle, Co. Roscommon  :  Tel: 086 844 0541   |  071 966 6044  |  071 967 3100  | Email: info@mkfinancial.ie

Hot Topic #2

Investing for a return on your capital

With interest rates so low at the moment and DIRT tax of 41% to be paid, it means there is little or no return on your deposits.

To achieve real growth on your capital it may be necessary to take a level of risk to achieve a return.

It is therefore important to look at the different and diverse opportunities that are available taking into account the risk level and term you want to invest for.

€170 billion is the amount of money on deposit with our banks at the moment! (Source: Aviva Brokers Conference March 2016)

• We can provide advice on a range of funds from Capital Guaranteed, Property, Equities and alternative funds through a large number of investment companies with diverse opportunities.

If you need further information please give Michael a call on 086 844 0541.

For further information please contact Michael at MK Financial on 086 844 0541.

MK Financial is an independent financial advisor with access to all main Insurance and Investments.

MK Financial has been offering independent, clear, professional financial advice for 18 years.

MK Financial, Boyle Enterprise Centre, Quarry Lane, Boyle, Co. Roscommon  :  Tel: 086 844 0541   |  071 966 6044  |  071 967 3100  | Email: info@mkfinancial.ie

MK Financial - Hot Topic #1

Plan for your retirement!

What do you need to do to avoid a huge drop in income?

• The State Retirement age will increase to 67 in 2021 and 68 in 2028. If you retired today the drop in income, if relying solely on Contributory State Pension, is estimated between 67–85% for a single person.

• The earlier you start funding for your pension, the greater chance you have of closing this gap!

• Currently for every 1 retired person there are 6 people in employment … by 2050 there are expected to be less than 2 people in employment for every retired person. It is up to every person to make sure that they do not fall into the pensions shortfall time trap!

For further information please contact Michael at MK Financial on 086 844 0541.

MK Financial is an independent financial advisor with access to all main Insurance and Investments.
MK Financial has been offering independent, clear, professional financial advice for 18 years.
MK Financial, Boyle Enterprise Centre, Quarry Lane, Boyle, Co. Roscommon  :  Tel: 086 844 0541   |  071 966 6044  |  071 967 3100  | Email: info@mkfinancial.ie