Your money queries answered by Peter Rutherford, chief executive of Rutherford Wilkinson plc, independent financial advisors. Mrs R H from Gosforth asks:
My mother has been in a nursing home for the last year and, in view of the value of her house and savings, she has to make a contribution towards her care costs. On her death her will leaves everything that remains to me. However, my husband and I feel we have ample assets and any extra capital would only aggravate our own estate even more from an Inheritance Tax (IHT) point of view. So, can we ask for her assets to pass directly to our children? Answer:
If your mother is well enough she could alter her will now. If not, your solicitor could arrange for a variation of her will after her death to your children, thereby skipping your generation. The advantage of doing this is that if nothing was done and the capital came to you, even if you gave it straight-away to your children, it would then take seven years to fall outside your estate for IHT purposes. ********** Mr J W from Blaydon asks:
My bank has suggested I should take out an income protection scheme if I can't work through illness or accident. The monthly premium they quoted for the benefit I would receive does not seem too bad, but I was just wondering what the catch might be? Answer:
Permanent Health Insurance (PHI) will provide you with a regular monthly income if you are unable to do either your own or, in some cases, any occupation through accident or illness, until your selected retirement age or you recover enough to return to work. There will be a deferral period before the cover starts with a minimum of four weeks and a maximum of 104 weeks. The longer the deferral period you select when taking out the policy, the cheaper the premiums will be. Check first to see how long your employer would pay you if you are unable to work. An independent financial adviser will then be able to select the most appropriate scheme for you. Mr D P from Jarrow asks:
I live with my girlfriend in a one-bed rented flat. We are both working all hours to save a deposit to buy our first house. Where is the best place to invest about £500 per month - without risk, and accessible when we need it? Answer:
I would suggest that you consider Mini Cash Isa schemes. You can each invest up to £250 per month, subject to a maximum of £3,000 per tax year. All interest will be credited to your account and if you go for an instant access Isa, you can draw the capital out at any time without penalty. ********** Investors Guide is a booklet with information on all aspects of investment and is available to readers. To apply for your free copy, freephone (0800) 074-5489 or write to me at Rutherford Wilkinson Plc, 21-23 Bridge Street, Morpeth, Northumberland, NE61 1NT. Please also write with any queries you would like answered. Rutherford Wilkinson Plc is authorised and regulated by the Financial Services Authority. | 
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