Interesting curation of Blacktower Financial Management news

Here in Spain, I hear no end of horror stories regarding the country’s financial institutions and laws. Unfortunately, I too have been on the receiving end of unscrupulous and downright unfair treatment, but last week a client of mine of over four years called me in distress. For the avoidance of doubt, this is a true story.

My client is 86 years old and, sadly, her husband died eight months ago. Over four years ago she followed our recommendation of investing in a purpose-built Spanish portfolio bond with both her husband and her as lives assured. This meant that should either partner die before the other, the bond would continue as if nothing had happened, thereby not triggering a Spanish Inheritance Tax calculation. In Spain unlike the UK, there is Inheritance Tax between spouses, however, because this particular bond is held outside Spain it avoids inheritance tax. This is a tool that we often use for clients in Spain.

But does this really apply to you?

My recent meetings with clients have largely revolved around transferring pensions out of the UK into Qualifying Recognised Overseas Pensions (QROPS to you and me). Without exception, all of my new clients have been scared to discuss their UK pensions with a Financial Adviser in Spain because of headlines like the one above (Financial Times – March 10, 2017).