Law Changes

Intestate

If a person dies intestate, they died without making a will, or without fully disposing of their property by will. The administration of the estate is then governed by the provisions of the Administration of Estates Act 1925.

Intestacy

An estate where the person died intestate.

The Government has announced that as from 1st February 2009 the statutory legacy will increase to £250,000 from £125,000 where there is a surviving spouse or civil partner and children and to £450,000 from £200,000 where there is a surviving spouse or civil partner and parents or siblings but no children.

This does not mean that a Will is not now necessary and as before the importance of a proper professionally drawn up Will cannot be over emphasised

Investments

Norwich Union is well-known for offering a choice of protected or guaranteed life funds available within the Portfolio Bond contract.

The range of guarantee options available from Norwich Union is mainly based around with profit investments and offers several returns of capital guarantees as well as an inflation proofed return. The Guaranteed fund has a similar make-up to a defensive managed fund and it was felt that the guarantee would rarely be called upon.

The Guaranteed fund is a unique offering and has always been popular with advisers and investors. We believe it can provide a valuable alternative for cautious investors that are concerned about costs and/or are not suited to a with profits arrangement. Performance is linked to a portfolio of underlying assets similar to a defensive managed fund and on the fifth anniversary of investment the fund will pay out the greater of the fund value or the initial investment. The fund can only be selected at outset but can be held alongside other funds in the bond.

Before the fifth anniversary investors will receive a letter from Norwich Union to outline the options. Investors can elect to reinvest in part or in full back into the guaranteed fund for a further five years or switch into different funds. If no decision is made the fund will be switched into the Deposit fund on the anniversary. The fund has an annual charge of 1.5%, which is slightly higher than other internal funds offered by the provider to cover the costs of guarantee.