parkhigh

Hi Everyone
Whilst waiting for our visa application to proceed I thought I would post a question re our endowment. We have a 20 year unit linked endowment with Standard Life it is in the life with profits fund.
The total policy on maturity was supposed to repay our then mortgage of approx £40k, however as most of you are aware this is rapidly reducing.
2 years ago i phoned for a quote to cash in and was told £13k and have continued to pay the £81 per month. Today I called and it is now valued at £12k so I am gutted.

This policy has a promise in that it will meet some of the shortfall but not all. It has 8 years to run and we hope to be in aus by end of the year. Many of the advisors at Sandown advised us to sell before aus because after 1 year it will be classed as worldwide assets. We have worked out what we pay in for next 8 years and what we might get may not be worth it.

Does anyone have any experience of selling an endowment like this and who buys them as I have phoned a few and they are not interested as it is stock market related.

Other than that how I can tell when it is going to be a good time to sell to our own broker? i know I am asking the magic question but would really appreciate some help and ideas.
Thanks
Irene

Jimbo9

This may be of use

http://boards.fool.co.uk/Message.asp...=whole#8457830

Level of compensation & potential demutualisation windfalls are important factors. As your policy is "with profits" it would be attractive to a second hand endowment broker and you should be able to get a lot more than the surrender value.

arlene

ph

have also got an endowment with sl, hang in until after genral meeting in april as it is a possibility that they will demutalise and windfalls are expected

phoned sl up and was told that if i keep my bank account open here and make sure i pay the premuims then no worries, terminal bonus's at the end will bump the end result up hopefull

arlene

parkhigh

Hi
Thanks for your replies
Although it is a with profits endowment it is unit linked which appears to have limited interest.

I didnt know about the demutialisation so maybe will hang in for a bit longer as they will cheese me off even more. Arlene are you planning to keep your endowment running whilst in Aus. We had considered that but I have been advised that after a year in aus we would have to give about 47% of our profit earnt to aus govt. Hardly seems worth continuing with the policy?
have you had different advice?
irene

parkhigh

This may be of use

Thanks for the link I had never heard of it before so will post some thoughts.
Irene

Olibeneli

Will you definitely make a profit that is taxable ?

Jensen Healey

Holy sh1t!

I hadn't considered that this would be taxable - it isn't in the uk...

parkhigh

Hi

We worked it out that over 20 years we will pay in approx £20k and with the promise it has now reduced from 41k to 31k. So as I understand it the difference between what we put in and what we get back is subject to tax. Australia considers worldwide taxation on everything after your first year. So basically if it achieves 31k then approx half as I understand it will be given up in tax.

i have thought about making policy over to mum and dad etc but then the promise becomes nul and void and then its really not worth having.

I have posted a question on motley fool so hopefully will have some more answers soon.

Has anyone out there had one of these policies and then sold them?
Irene