How to Make the Most of your Financial Perks of being Married!
While marrying for money is hardly the sole reason for marital bliss, it can make a lot of financial sense to get wed. You could save thousands in income tax, Save hundreds on inheritance tax, save hundreds on car insurance, and from an inheritance tax point its significantly better to be married when it comes to pensions! More of that to follow, here are our easy to understand Top Tips on the perks of why marriage could save you a small fortune!
Transfer Cash Cows
Explore if Income Tax Savings can be made by transferring income generated assess from one spouse to another.
You may be a couple where one is working and the other isn’t, and you should consider saving any income generating assets into the name of the spouse who is not earning, therefore you can maximise the value of the standard rate cut-off point (the amount of money you can earn at the twenty percent standard income tax rate). For example, if the working spouse owns a rental property and is earning income from that property as well as income from their man job, the top forty percent rate of income tax will likely have to be paid on the rental income. But if the rental property is in the name of the spouse, who isn’t earning, twenty percent tax would likely only need to be paid on the rental income, obviously depending on the amount of rental income earned!
Be Careful with your Will
Sometime people who make a Will split the entire estate between the spouse and children and inadvertently then trigger a tax bill earlier then is necessary. We would always advise that everything goes to the surviving spouse first and thereafter to the children, as NO TAX is triggered with the first step! Tax is only triggered later on, when moving to the second step. We advise that those with an approved retirement fund should specify in their will that they want it left to their spouse or other family members.
Get the Right Pension Benefits
If your an employee and your company provides you with access to a pension scheme, that scheme could have Death in-Service benefits. You might be entitled to a larger death in service benefit as a married person than a single person. A Death in Service Benefit could be up to twice your salary if you’re single, BUT four times your salary if you’re married. The higher the benefits may also apply if you have dependents, a financially dependent partner or children. Ensure you advise your HR department that you are married so that the correct benefits are provided to the correct person.
Get in touch if you want to learn more about the financial perks of marriage. Call Allied Financial at 096 60044.