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August 7, 2019

Who Gets My Money If I Don’t Have The Will

property moneyDo you know what would happen to your money, property and possessions if you died without making a will? For most of us, writing will content isn’t high on our list of priorities. But if you knew what could happen when you die without making a will, you would realise that it could be one of the most important things you ever do.

Dying without leaving a will – which is known as dying intestate – has some very serious consequences, which all too often, people are unaware of. The intestacy laws which exist in the UK determine what happens to a person’s estate when they die intestate. These are strict rules which dictate who may inherit from a person in the absence of a will. And they may not operate in quite the way you assume they would.

The rules on who can inherit from you if you die without leaving a will, all depend on your marital status. What applies to a single person, doesn’t apply to a married person, and doesn’t also apply to those who are in a relationship, but not married. The following is what happens to your estate when you die without a will:

Some things you should know about intestacy

When you die without leaving a will behind, the only thing you can be guaranteed is that the laws of intestacy take effect. Intestacy just means you died without making a will.

Under the rules of intestacy, it is usually only a spouse who can inherit from you. If you do not have a spouse at the time of your death, then children, parents, siblings and a few other relatives are entitled to your money but the order in which they inherit is strictly determined by law, and is laid out below. If no surviving relatives can be found, including distant relatives, the government takes possession of your estate.

Whilst under the laws of intestacy your property might be shared to your relatives, it might not be in the way you would have done it, or to relatives you would not have chosen. It’s important to understand how the law would divide up your estate if you were to die without making a will. It is also especially important to understand how dying intestate affects a surviving partner if you are in a relationship, but not married.

Here are some of the most common scenarios:

INTESTACY AS A SINGLE, UNMARRIED PERSON

If you are unmarried and have no children, your money is automatically given to your parents, if they survive you, along with all of your property. In cases where both of your parents are no longer alive at the time of your death, your siblings are next in line to receive the proceeds of your estate. This also includes any half-siblings.

The money or property will be divided among them in equal parts, no matter how many beneficiaries there are. If you are not survived by parents, siblings or children of your siblings, then your mother’s closest relatives get half of the money or property, while the closest surviving relatives from your father’s side get the other half.

The last condition to this is that if you die and are survived by children, then the entirety of your money and estate goes to your children. All will have an equal share of your money and property. If they are no longer alive, then your inheritance would be passed to any surviving children that they had (your grandchildren). If you had two or more children, and one dies before you, and that child has a child or children, then the children of your child, as well as your other surviving children get the money, divided equally between them.

INTESTACY AS A MARRIED PERSON

Married partners or civil partners inherit everything you leave under the rules of intestacy, if your estate is worth up to £250,000. Note however that this only applies if you were actually married or in a civil partnership at the time of death. That means that divorced ex-partners have no rights to inherit from you under the rules of intestacy.

If however, there are surviving children and your estate is valued at more than £250,000, then your spouse or civil partner will inherit the first £250,000 of your estate, and all of your personal property and possessions, and half of the value of the remaining estate. The other half of your remaining estate after the first £250,000 has been taken out, goes to your children, divided equally between them.

INTESTACY FOR AN UNMARRIED PERSON IN A RELATIONSHIP

Most of the laws of intestacy have no provision for those who are unmarried, no matter how long they have been together, and no matter whether they have children together or not.

It should be noted however, that in the case of jointly-owned property, if both partners owned property or a bank account together then the remaining partner would automatically become the sole owner of the home or money that was previously jointly owned.

Despite this, it can be particularly distressing and heartbreaking for grieving partners to discover that they have no share or access to their partner’s money or possessions, when it is too late to do anything about it.

Writing a will is the easiest way to prevent this circumstance from occurring. Writing a will allows you to name whoever you like to inherit from you and ensure that your loved ones are taken care of after your death in the way you would like.

The importance of having a will cannot be understated. It allows you to take control of your estate and ensure that those you most wish to benefit from your estate after your death will be able to do so, without having to fight for it in the courts. Making a will is easy and needn’t cost a lot of money. Seek advice from a solicitor or professional will writing service if you don’t feel confident drafting your own will, as they are the experts when it comes to ensuring your final wishes become legally binding.

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July 7, 2019

3 Simple Ways That Any Business Can Save Money

business money savingsNo matter what kind of business you run or which industry you operate in, there are always opportunities for you to save money. But for too many businesses, saving money quickly becomes a punishment game where employees and middle management shoulder the blame for systemic weaknesses in the way a business operates. Reducing costs and maximizing profitability should always be a concern for a modern business.

Here are some simple ways that you and your business can reduce your expenditures and ensure that you are keeping as much of what you earn as you can.

Get Smart With Your Marketing

A common mistake made by many businesses is to think that their marketing is a problem best solved by throwing enough money at it. In fact, you can utilize many of the most effective marketing methods out there without having a huge amount of money to spend on it.

Viral content, for example, can explode in popularity and become self-sustaining. If many of the viewers of your marketing are then showing it to their friends, they are doing your job for you. The best part is that you only need to pay for the creation of the initial content. Your audience will do the rest.

Always Be Cutting

No matter what your business is or how much of a stickler you are for efficiency, we can all but guarantee that there are some cost-cutting measures that you could take. Even small savings add up over time, so always be on the lookout for cost-cutting opportunities.

When you need new supplies, small or large, make sure that you shop around for options. For example, if you are renovating or upgrading part of your business and need some more space, it often makes more sense to use steel buildings, rather than renting expensive real estate. Through businesses like Armstrong Steel, you can buy prefabricated steel versions of most buildings. You can look here for more information about the buildings they offer and how much they will cost per square foot.

Reconsider Your Real Estate

This one very much depends on the kind of business you are in, but some people have little choice about where they work. However, for many people, a change in location can mean some pretty significant savings.

If you run a retail business or a business where the customers come to your premises, you will obviously need to think carefully before making any drastic decisions. But, regardless of the business you run, don’t fall into the trap of thinking that this is something beyond your control – it rarely is.

Once you start looking for ways of reducing your overheads and cutting costs, you may well find yourself going from thinking that your business is already operating efficiently to having a whole binder full of potential new cost-cutting measures. Don’t just make this a one-off thing that you do in response to unfavorable financial conditions. Instead, make cost-cutting a core component of your corporate ethos and encourage workers at all levels of your business to get involved.

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February 12, 2019

Why More Millennials With Student Debt Are Qualifying for Mortgages

student debt mortgageIt used to be that graduating students with large amounts of student loan debt were told to forget purchasing a home until after they’d paid down their debt. Still others were told to wait until they’d built up years of work history, delaying the initial purchase of a home for years. Today, however, more and more millennials are finding it possible to qualify for a mortgage while paying off student loan debt. How?

They Have Good Credit

Credit scores range anywhere from 350 to 850, with anything below 600 considered a poor score. Most mortgage lending programs, even those that are federally funded for first-time buyers, look for scores of at least 620. Those with excellent credit, above about 750, will stand an even higher chance of securing a mortgage with student loan debt.

If your credit score may be an issue, follow these steps to move toward improving it:

● Check your score – you can’t fix your score unless you know what it is. Examine your report and notify the credit bureau of any errors immediately.

● Address any delinquencies – it’s important you address delinquencies immediately. If possible, pay the account off entirely.

● Set up auto-pay – setting up auto-pay features for all your debts will ensure each payment is made on time. Building a lengthening history of paying every debt on time each month makes you much more attractive to lenders.

● Avoid applying for new credit that may go unused – applications are typically a ding on your credit, so even if you don’t intend to use the upper limits of a new card, it may hurt your score.

● Don’t close paid accounts – credit cards you’ve paid off can positively affect your credit score. If you are not using all of your available credit, open, empty credit cards can be helpful.

They Have a Lower Debt-to-Income Ratio

Debt-to-income (DTI) ratio is calculated as your monthly debt payments compared to your monthly income. If you are paying off a student loan in addition to credit card debt, you’ll need a relatively high monthly income to offset the amount of debt you’re carrying. Lenders will focus on your debt-to-income ratio to determine if you can afford another debt – your mortgage – in addition to what you’re already carrying. Paying off credit cards or student loans and maximizing your earning potential can help on both fronts.

You can also consider consolidating debt with a personal loan. If you have a great deal of credit card debt, you likely have a variety of higher interest rates. A personal loan is a stable debt rather than revolving debt like a credit card, and reflects positively on your credit history. You’ll likely receive a lower rate in addition to freeing up available credit.

They’ve Secured Employment in Their Field

Lenders will consider your employment history to determine if you have the steady income required to continue to make mortgage payments. If you’ve recently graduated, you may not have the recommended two years of steady employment. However, underwriters will often consider a move from college straight into gainful employment in your chosen field a substitute for part of your employment history.

They’ve Refinanced or Restructured Student Loans

When lenders look at your debt-to-income ratio, student loans are among the debts they’ll consider. If your payments are unwieldy, consider applying for an income-driven repayment plan through the U.S. Department of Education. These plans consider your income and often provide a lower payment than the typical graduated repayment program. If your income increases, you can increase your repayment to ensure you continue to pay down your loans.

Another solution that can lower your monthly payments is refinancing your student loans. Loans refinanced through banks or other institutions typically carry lower interest rates and lower monthly payments than the original federal loans. As with other loans, you’ll need to consider your creditworthiness, income, and debt-to-income ratio.

They’ve Qualified for Down Payment Assistance

Though the traditional down payment is 20% or more, several programs exist to reduce your down payment in order to speed up the homebuying process for those with student loan and other debt. For example, FHA loans by the Federal Housing Authority offer a much lower percentage – 3.5% for those with credit scores in the 600s and above, and 10% for those in the 500s. HomeReady loans targeted at first-time home buyers offer even lower down payment terms of around 3%.

Find a lender that works with these and other first-time home buyer and down payment assistance programs. Many lenders do not offer zero down payment, but still offer a variety of other loan types that could meet your needs. Obviously, if you have the means to provide a 20% down payment, you’ll lower the principal on your loan, but these assistance programs can put buying your first home within your grasp.

Today’s millennials with student debt are qualifying for mortgages, and chances are, you can too. Overall, pay close attention to your credit score and making your payments on time. Keep your other debt low, and ask your lender about assistance programs that may be available to you. Finally, if you’re in the market for a home, get pre-approved first to see just how much home you can afford. Then, if you find the home of your dreams, you’ll know you can move forward, even while you’re paying off your student loan debt.

Information is provided by Sammamish Mortgage, a Premiere Mortgage Company in Pacific Northwest including WA, ID, OR, CO.

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December 18, 2018

Own a Home, Not a Mortgage

time for no mortgageOwning a home is one of the biggest dreams of almost every adult, especially when they have a family. Mortgage arrangements come in handy to make this desire a reality. Nevertheless, homeowners are left with another big question on their minds: What strategies can I employ to pay off my mortgage as quickly as possible? Well, it is natural to want to be free of any debt commitments, and to know that you own your home and that no one has a claim on it. This is because owning a home will allow you to work on other financial goals, like saving for retirement, saving for your children’s education, and so on.

Paying off your mortgage in a shorter period is not too difficult or unachievable, but it calls for slight adjustments in your payment plan, or changing a few things in your mortgage terms. Here are some things you can do:

Increase the frequency of your regular repayments

The normal terms are monthly payments, but you can choose bi-weekly or weekly payments. Such an arrangement will significantly enable you to save on interest and it will set you free from mortgage sooner than if you only do it monthly. The goal is to make more monthly payments each year without realizing it.

Go for the shortest amortization period and the biggest repayment amount you can afford

Opting for a larger monthly payment, which means it will be paid off quicker, will cause you to consider it as a budget item, thereby shaving several years off your mortgage. While still clearing out your mortgage, a good and consistent mortgage repayment history will enhance your credit score, because mortgage is one of the trade lines (credit accounts) that contributes to your score. You can work with experts to boost your credit score to access more credit at better rates. You need not look further than https://www.boostcredit101.com/ to boost your score and find more advice.

Increase your monthly payment amount when possible

If you have had a mortgage for some time, you have most likely set a plan to make uniform payments each month. It is time you consider increasing the amount, if you can manage. Additionally, if you have experienced an increase in your income, be it from a new job, a pay raise, or any other source, it would be prudent to increase your mortgage payment with the increased income.

Pay lump sum amounts

Mortgage arrangements come with some privileges or additional options that the borrower can use to their advantage. For example, any chance to make lump sum payments should be utilized, especially an annual lump sum payment, against the mortgage. Based on the options you choose for your mortgage, you can pay amounts equal to 10%, 15%, or 20% of the initial principal figure of your mortgage at any time for each year of the mortgage term.

Diversify your mortgage

You need to weigh the various options and choose the mortgage arrangement that offers savings and flexibility.

Conclusion

It is such a relief to pay off your mortgage as fast as possible; thus, you need to work out how to save on other things and repay your mortgage in larger, more frequent payments. Also, you should do lump sum payments when possible.

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December 17, 2018

Liverpool Becoming Buy to Let Hub for Investors

buying propertyOver the past few years, Liverpool has been hailed as a buy-to-let property gold mine. It has low initial costs compared to other UK cities and a growing demand for rental accommodation. Considerable investments from both the private and public sector have been boosting the city’s economy.

Liverpool’s affordable property prices are a huge draw for potential investors. With house prices in Liverpool considerably less than the UK average, developers and investors have been making the most of opportunities in the city. The average UK house price is £215,000 with the cost in Liverpool only £117,000. These low house prices allow investors to get far more for their money compared to other areas like London and Cambridge. Investors have been discovering that for the price of an apartment in London, they could by a couple of comparable quality properties in Liverpool. Prices of property in Liverpool are also on the rise. These increasing house prices are an excellent indicator for investors whose property is worth far more than they paid.

Liverpool has been attracting investors from around the world. With its strong trading history, famous football clubs, and of course, the Beatles, it’s definitely on people’s radar. Investors from the USA, to China to Saudi Arabia are all looking to this northern city as a possible location to expand their portfolio. Developers from overseas are also purchasing land in Liverpool, and working with the city to create new properties. A citywide targeted development strategy has improved areas of Liverpool that were once derelict or underdeveloped. This increased investment has been creating lucrative new opportunities for investors.

Buying off plan is another popular option with investors. Guaranteed rental yields mean that investors see income as soon as the development completes, without having to deal with tenants themselves. Access to new off plan developments is highly sought after, with plans for modern skyscrapers, apartment buildings and purpose-built student accommodation pending. The city’s borders are expanding. Unused land is being snapped up by developers for new projects around the city.

Liverpool has a high average rental yield, with some properties offering returns of up to 8%. This assured income from property is highly beneficial for investors who are generating income while their investment increases in value. It also allows investors to hold on to property, with rental income paying for the investment in years. Properties by RW Invest have rental yields of 7-8% on stunning luxury apartments in the city. High quality, modern apartments with options for furniture and high-end fittings are perfect for buy-to-let investors. Developments like Azure residence, with apartments from £94,950 and Tobacco Wharf with flats from £84,995 both, offer a generous 7% yield.

A recent study showed that 13.8 tenants were trying to get each new rental that becomes available. With such a competitive environment and so much demand, tenants are sometimes willing to spend a little bit more for a city location or a beautiful apartment. With buying their first home still unattainable for many young people. It was recently reported that 44% of private tenants were not expecting to buy in the long term. Improving job prospects are attracting more and more people to live in Liverpool city centre. These are often looking for rental accommodation that is close to the city centre or excellent transport links.

The increasing demand for rental properties and the option of long-term tenants are all factors in Liverpool’s reputation as a buy to let hotspot. With low prices, a growing economy and new developments continually popping up, Liverpool is continuing to attract savvy buy-to-let investors.

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