Further Uses of Life Assurance - Partners

Briefly, a partnership is an arrangement where tw0, three or more people join together for business or professional purposes. Usually, this agreement is drawn up in a legal document giving in detail the partners' rights and obligations to one another. The partners put capital into their venture, and on death or retirement each partner is entitled to his share of the partnership; this may be a fixed amount or revalued regularly to reflect the partnership's success. The dead partner's interest may have to be � repaid at a time when all the capital is tied up in the business and cash is not easily available; or, if the widow is entitled to continue in his place, the surviving partners may wish to buy out her share. All this requires life assurance, and several different types of policy are available for partnerships. Two simple methods are :

1. Each partner takes out a policy on his own life for the benefit of the other partners. The partner taking out the policy obtains income-tax relief, on his premiums, but there is an estate-duty liability on the policy proceeds if he dies within seven years of paying a premium.

2. Each partner takes out a policy on his partner's life and pays the premiums on that policy. With this method, no income-tax relief is available, but the policy proceeds are free from estate duty, since the dead partner never directly owned the policy himself.

Partnership arrangements can be complicated, so make sure that a solicitor is consulted and draws up the agreement.


Partners

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: Further Uses of Life Assurance - Women

Briefly, a partnership is an arrangement where tw0, three or more people join together for business or professional purposes. Usually, this agreement is drawn up in a legal document giving in detail the partners' rights and obligations to one another. The partners put capital into their venture, and on death or retirement each partner is entitled to his share of the partnership; this may be a fixed amount or revalued regularly to reflect the partnership's success. The dead partner's interest may have to be � repaid at a time when all the capital is tied up in the business and cash is not easily available;... see: Further Uses of Life Assurance - Women