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We save you time and money! |
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Bankruptcy Annuity Services LLP (BAS) |
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Steve Lambert Partner |
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About Us |
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Why have you set this scheme up? We have been dealing with winding-up pension plans for a number of IPs for many years now and had received a number of requests as to what they could do with small residual annuities which often comprised the only remaining asset within the Bankruptcy once the tax-free cash sum had been taken. In the past there was little or nothing that could be done, and many Trustees simply sold the right to the income to the bankrupt for a tiny amount or in some cases handed it to them for nothing! In our opinion these were always questionable actions, so we set this fund up to provide a source to allow IPs to close these troublesome old cases in return for a realistic sum, thus satisfying any awkward creditors. How does the scheme work? This has been designed to be a simple procedure from the IPs point of view - we will provide documentation to enable the Bankruptcy to sell the income to us in return for a one-off lump sum, depending upon the client's age and length of any unexpired guarantee period (if any); we do all the work and provide all the documentation; once it has been completed we take over all future dealings with the client and the insurance company; you close the file. QED! What information do we need to enable us to provide a quote? We have a very simple data capture spreadsheet just click here and complete the details requested. We will then make our offer, and if you are happy we will get the ball rolling. What happens if the bankrupt dies after we have bought the right to the annuity? Thats our problem, not yours! We are obviously taking a commercial risk that the bankrupt will live long enough to cover our costs, but we have already completed a very large number of cases, and have made actuarial assumptions with which we are content. We therefore guarantee that provided all documentation is completed satisfactorily we will not look to any Trustee for reimbursement should the bankrupt die earlier than we would have preferred once the matter has been completed you can close your file safe in the knowledge that the risk is ours, not yours. Incidentally, this also means that once the right to the annuity income has been sold, and your case closed the bankruptcy is not exposed to the perennial problem of keeping track of the annuitant to ensure that (s)he has not died without your knowledge; that becomes our responsibility. We have set up a system to check that the bankrupt is still alive on an annual basis. Is it true that in your experience, no tax is payable by the individual and the lump sum paid to the Trustee in Bankruptcy in consideration for the right to future income from the pension annuity will be treated as a capital receipt in the hands of the Trustee? Yes, in our experience both points are true. Will you be happy to receive the right to the annuity income after the tax free cash and the income for the (usually 5 or 10 year) guaranteed period have been stripped out? Yes. We certainly have no need nor wish to be involved with the tax free cash payment; in practice we have purchased a number of cases where the 5 or 10 year guaranteed period is unexpired, and would be pleased to quote for any case of this type. Are there any maximum or minimum annuity income limits? No; the largest we have quoted for is £70,000 per annum, the smallest a princely £76.58 per annum. We will consider whatever you have. Can the annuitant subsequently purchase the investment company's interest in the annuity payments in the same way as a Trustee may sometimes offer the Bankrupt the right to purchase the on-going annuity payments in order to close his/her case? Yes. We offer the annuitant the right to buy the income once the case completes, and will always be open to offers in the future. Will you deal with cases where the pension fund has not yet been vested (i.e. the bankrupt has an old fund where benefits have not yet been taken)? Yes. We have a sister IFA company who specialise in these matters and are happy for their usual fee of £125 per hour, maximum £500 to deal with the closure of these cases on your behalf. Tax free cash can then be paid to you, and we will then buy the residual annuity (for which, of course, we make no charge) under our usual scale.
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Nigel Poole Sales Manager |
