Endownments - what did you do with yours ?
 

Now just starting to do all of the thinking of the financial aspects of our move and wondered :-

1. Did anyne carry on with their endownments? And why did you keep them?

2. If you sold your endownment - Who did you sell it to ? roughly what % payment did you receive ? and finally who did you use to sell these?

Thanks

Gaynor

Re: Endownments - what did you do with yours ?
 

I've just cashed mine in. Reason being that you will be taxed in Canada on any increase in the value of the policy between the date you start living in Canada (if not the same date that you land) and the date it matures. I calculated how much I would pay in premiums between those dates and how much it was likely to increase (taking into account the fact that the final bonus is likely to be quite large) working out how much tax I would have to pay and realised that I would be much better off having the funds now to help kick start our new life - mine had 12 years to run.

I tried to sell it via a local IFA and AAP (both of whom I had heard very good things about) and was told that they were not able to achieve a higher value than the life company offered.

Another bunch of shisters told me that they had a "firm offer" of approx 25% more than surrender value, but after 12 weeks of nothing and them revising the "firm offer" downwards twice I decided to surrender to life company. I was told by the reputable companies that it was the number of years it had to run that was likely to be the reason why "purchasers" were interested.

Best of luck with yours :D

Re: Endownments - what did you do with yours ?
 

We are going to cash ours in - wished we'd never had them as they are not going to make the final sum they were meant too - £££££s down. Think that goes for everyone who ever took one out :(

Re: Endownments - what did you do with yours ?
 

Quite. I cashed mine in before leaving the UK. I never tried to work out what my capital loss was. Couldn't see the point.

Re: Endownments - what did you do with yours ?
 

DtlE - at what rate is the tax on the difference in the value of the policy (between moving to Canada and policy maturing) please ?

We cashed in one policy a few years ago which was going no-where fast, but still have a small £10,000 policy running - which is more than on target apparently - with a few more years left to go. I've no idea what it's current value would be but am I looking at some hefty percentage of tax in a few years if we leave it here ?

We've also got about 10 ten-year mini endowment savings policies - we just keep adding one each year as the last one matures. The current value of all of these is about £22,000 - again, are we looking as some ridiculous percentage to pay to Mr Taxman - and will that be too much of a pain to sort out for such a small amount on an annual basis?

Re: Endownments - what did you do with yours ?
 

Sold it because we were offered pretty much what we would get upon expiry less the payments to that date of course.
Sold ours "back" to Norwich Union. Phoned them on the Monday had the cheque by Friday.

Value they gave us was way more than a "we buy your endowment company" I got from the sunday press.

Re: Endownments - what did you do with yours ?
 

Gave this much thought but on discovering that our financial advisor had cashed his in I needed little persuasion to do likewise. Endowment was a low cost one with Standard Life and they offered the best price for cashing it in.

Re: Endownments - what did you do with yours ?
 

If you don't cash them in before you arrive in Canada you will go through a tax minefield. For various other reasons I had to use an accountant for my first years return and almost missed thed eadline because of a long and protracted discussion between the tax authorities and my accountant about how an endowment should be treated. Essentially the Canadian tax authorities don't have a clue about them

Re: Endownments - what did you do with yours ?
 

Glad I came accross this discussion, we are going to BC permanently in January 07, we have two endowments which only have four years to run, so we were going to keep them going. Should we be thinking about changing our mind?

Re: Endownments - what did you do with yours ?
 

Been away a long time. What are these things of which you speak?

Re: Endownments - what did you do with yours ?
 

What most men do with it of course!!!! :confused:

Re: Endownments - what did you do with yours ?
 

we cashed ours in and bought a new car :D best thing we ever did :D

Re: Endownments - what did you do with yours ?
 

As others have said the exact amount you will pay in tax has many variables and so it is impossible for me to even point you in the correct direction. Needless to say, the more it will increase between landing and maturing, the larger the percentage of tax you will pay.

We also went through the "what if we return" scenario as anything could happen in the 12 or so years before it matures but the lure of a couple of new cars/snowmobiles/new wardrobe for Mrs DTLE/gadgets for the kids became too much :D

Re: Endownments - what did you do with yours ?
 

[QUOTE=Dying to leave England]I've just cashed mine in. Reason being that you will be taxed in Canada on any increase in the value of the policy between the date you start living in Canada (if not the same date that you land) and the date it matures.

Hello Dying to leave England

Are you saying if you land with no intention of staying, they will still hassle you for any increases from that date. I hope I've misunderstood your post, but if not could you please confirm this :confused:
Ta

Re: Endownments - what did you do with yours ?
 

Yes - thanks - definately sounds complicated to me ! And due to my dicussion on another thread about lack of liquid assets - we might have to cash them in before December so we have enough 'proof of funds' for landing - as the house won't be sold by then !! I completely get the argument about cars/gadgets etc. Yep ! :)