Arranging a funeral

Posted on 29 July 2010 by ssquah

A rather morbid story today but a necessary one. It’s about arranging a funeral. I’m no expert in this field but if you need a professional funeral director here in Malaysia, there are several too.

Losing a loved one is always difficult, but the financial concerns of arranging a funeral can cause additional anxiety. From choosing the right funeral director to making a claim on the deceased’s life insurance policy, there are many things to take into consideration.

arrangingfuneral.jpgArranging a funeral

Funerals are expensive. The average cost of a burial service, excluding the headstone, is £3,307. At a crematorium it is £1,954, but costs can easily spiral beyond this. For example, you will pay more if you want to be buried or cremated in a borough in which you do not live at the time of your death.

Some people may have already planned and paid for their own funerals, but it can be daunting if you suddenly find yourself having to arrange a loved one’s send-off. At some point you will need to work out how you are going to pay for it all.

Paying for the funeral

The bank account of the person who has died will be frozen, unless it is a joint account. In some cases the bank may agree to release funds to cover funeral costs, but it is not obliged to do so until probate is granted. If the bank does not release funds, you may have to pay for the funeral and then recover the money from the estate of the deceased.

There are several things that you need to check about the deceased when paying for a funeral. First, was he or she a member of an occupational pension scheme? Some schemes pay a lump sum to help with funeral costs and sometimes pay pension benefits to widows or other dependents. There may also be money payable from the deceased’s trade union or professional body, so contact such organisations directly to find out.

The deceased may have taken out a life insurance policy that provides a lump sum when someone dies. Payment is usually made after grant of probate, but the insurance company may pay out a limited sum on evidence of death.

Finding a funeral director

Most people make funeral arrangements through a funeral director.

Costs can vary significantly between different funeral directors, so always obtain more than one quote. They should provide detailed price lists for you to take away and consider, so do not feel pressured into agreeing to anything immediately. Also ask for written details of all disbursement fees, which may include a doctor’s certificate, newspaper announcements, flowers and crematorium or burial fees.

Some people prefer to make their own arrangements because this can be more personal and less expensive than going through a funeral director. Mike Jarvis, of the Natural Death Centre, the charity, says: “This would involve collecting and storing the body and making all the funeral arrangements. While it may not be suitable for everyone, some people take great comfort in arranging a funeral themselves.”

Green options

Around 10 per cent of all funerals are now environmentally friendly. Some cemeteries have a specific section of land for green burials, while the Natural Death Centre has established 228 natural burial grounds in the UK over the past 15 years. These sites include woodland, meadows and farmland.

Mr Jarvis explains: “These burial grounds are used for unembalmed bodies to be buried in a biodegradable coffin. Instead of a headstone, there will be trees, plants or wildlife. Not only are traditional headstones expensive, they are also bad for the environment, particularly as the materials used are often shipped in from abroad. At a green burial, graves are simply marked with a biodegradable wooden cross.”

Natural burial grounds are usually cheaper than sites at municipal cemeteries, although biodegradable coffins can be more expensive.

If you are considering a green funeral, you should investigate whether the land has a deed or trust in place to protect it from commercial exploitation in future. John Weir, of SAIF, says: “Check with your local authority that there is permission to use the land as a burial site. Once permission is granted, it is unlikely that the remains will be disturbed.”

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Please give me a job

Posted on 24 July 2010 by ssquah

A rain drenched but heart-warming story of a jobless man with determination.

A jobless man who stood for hours in the pouring rain with a ‘Please give me a job’ sign was stunned when a passing businessman offered him one on the spot.

After spending the last two years out of work, 23-year-old Mark Wheeldon was fed up of living on benefits and concocted a plan to get him noticed on the job market.

He decided to stand on one of the busiest roundabouts in Stoke-on-Trent, Staffs, and advertise himself to passing motorists during the morning rush hour.

So nervous was he about the job hunt mission that he lay awake all night before rising at 5am in the morning to create a sign from a piece of cardboard.

But he was flabbergasted when, after nearly three hours spent standing in a torrential downpour, timber factory director Vince Champion came to his rescue.

He spotted Mark on his way to work and returned to collect him, giving him an interview straight away and offering him the job just 20 minutes later.

After a shower, Mark found himself making frames at the Smart Timber Frame Company by midday.

Mark, of Newcastle-under-Lyme, had failed to find work after spending the past two years caring for a former partner who suffers from rheumatoid arthritis.

The former mechanic, painter and decorator and butcher’s assistant said: ‘I was planning to stay until the evening rush hour and then keep coming back until someone gave me a job.

‘I had been everywhere looking for work but I’d had no luck, so I thought I may as well as just go down to Basford Bank on the A500 and stand by the traffic.

‘I had been out of work for so long, looking after my partner and doing all the little things for her like brushing her hair.

‘All that time I had been looking for a job, but because I had been out of work for so long I had no current experience or references.

‘One day, I decided to make a fresh start and get my life back on track. I stayed awake all night just thinking about what I was going to do.

‘When I got up the next morning, I wasn’t put off by the rain in the slightest. When you are desperate for work you will do anything to find a job.

‘The whole time I was stood there I was just hoping that someone, anyone, would stop and ask for my number. It was all I could think about. I was freezing and soaked to the skin.

‘When Vince pulled up I was over the moon that someone had finally stopped to speak to me.

‘And when he offered me the job, I couldn’t believe I had found one so quickly.

‘Now that I’m here, it’s a job I really enjoy. I get on with everyone and I get to work with my hands. My bosses are great and I’m really looking forward to building a career here.’

Vince explained how he had been driving to fetch bacon sandwiches for colleagues when he spotted Mark standing on the roundabout.

He said: ‘I was on my way to work at about 8am and I saw Mark standing in the pouring rain, holding a placard which read: “Please give me a job”.

‘I thought if someone could stand there in that deluge – and it was absolutely torrential rain – then they must be determined to find a job. My attitude was the he would be an asset to any company.

‘There are not many unemployed people who would have done that and I thought that anyone who wanted a job that much deserved a chance.

‘When I brought him back to the office was so soaked through that a little puddle formed under his chair while I interviewed him.

‘I spoke to him for about 20 minutes and then offered him the job on the spot. I was really impressed by his determination and he has the right kind of attitude that we want here.

‘Now he’s getting on brilliantly and fitting right in with all the other employees. I wish more people could show the same kind of determination to find work as he did.’

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Dormant accounts

Posted on 20 July 2010 by ssquah

More interesting information on dormant accounts from the UK perspective. The story is quite out-of-date (Gordon Brown has left the UK political scene) and circumstances may be slightly different now. However, do read it to get an overview about what happens to your money should your banking accounts go dormant.

BANKS and building societies are calling for people with money sitting in dormant savings accounts to come forward and claim their money before the government gets its hands on it.claimthecash.jpgHalifax became the first big institution to launch a campaign aimed at finding customers who have £44m of savings languishing in unused accounts. It will send letters to the last known address of dormant-account customers and place adverts in the press and branches urging people to come forward.

Mike Regnier, head of savings at Halifax, said: “Our job is to reunite as many of our customers as possible with their cash. We are using every means at our disposal to do so — mailings, advertising and the internet. We are also employing search agents where appropriate.”

Other institutions are also looking to step up their search for lost customers.

Nationwide said: “We do have plans, but are not launching anything imminently. We are looking at a host of ways of reuniting people with their money. The main problem is that the contact details we have for these customers are often out of date.”

Banks and building societies do try to get in touch with customers who have money in inactive accounts, but often this tails off after five years or so — it varies depending on the institution.

However, the reason for the recent increase in activity is that the government wants to claim the money held in accounts that have been dormant for 15 years or more and use it to fund charitable and community projects.

Lesley McLeod at the British Bankers’ Association (BBA) said: “Our biggest concern is what happens if the Treasury takes the money and someone then comes to reclaim their savings.”

Gordon Brown first announced plans to claim the money in dormant accounts in 2004, but banks and building societies have warned that the move could be unlawful because customers retain the right to funds held in these accounts.

However, in the prebudget report last December the chancellor indicated that he planned to change the law and a further announcement on this is expected in next month’s budget.

The BBA has said that it will launch an industry-wide campaign aimed at reuniting consumers with their money if the government does go ahead with a scheme to claim these funds. The banks are worried that they will have to stump up the cash if a person comes to reclaim his or her money after it has been taken by the government — this is why they want people to act now before any such scheme is launched.

If you find a passbook for an old savings account you had forgotten about, you should take it along to a branch of the relevant bank or building society. If your address has changed you will need to take proof of your current address, such as a utility bill.

If you do not have a passbook but think you might still have money in an old account, you will need to fill in a form giving details of your current and past addresses. The bank or building society will then investigate and contact you if such an account does exist.

Many dormant accounts hold savings that belong to people who have died. If you find account details when sorting through the paperwork of a family member who has passed away, you will need to take a copy of the statutory declaration or probate form when you go to claim the money.

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Battle lines drawn

Posted on 16 July 2010 by ssquah

COME this September, we shall see what will possibly be the most acrimonious presidential contest for the World Chess Federation (Fide) for a long while.

Lining up on one side of the contest is the incumbent president of the world body, Kirsan Ilyumzhinov, who is seeking re-election since first getting elected to the top post in 1995. On the other side is his very worthy opponent, former world chess champion Anatoly Karpov.

When nominations closed at the end of last month for the submission of electoral tickets, the only two teams that met the deadline were that of Ilyumzhi­nov and Karpov. This means that they will go head-to-head in a direct clash of wills and personality that will see no compromise from either party.

(Clash of wills: Russian chess grandmaster and former world champion Anatoly Karpov taking part in simultaneous chess games at the presidential palace in La Paz, Bolivia, recently.)

Lined up on Ilyumzhinov’s team are Georgios Makropoulos, Ignatius Leong, Nigel Freeman, Beatriz Marinello and Lewis Ncube.

Makropoulos is the president of the Greek Chess Federation but he is also the Fide deputy president (since 1996). Leong has been the president of the Singapore Chess Federation and the Fide general secretary since 2005. Freeman, the president of the Bermuda Chess Federation, is the current Fide treasurer, a position he has held since 2006. Marinello is a former president of United States Chess. NCube is a former president of the Zambia Chess Federation and presently a Fide vice-president (since 2006).

All of them, except for Marinello, are seeking to be returned to the same positions they are currently holding in the federation while Marinello is seeking to fill a Fide vice-president’s slot.

Karpov’s ticket consists of Richard A. Conn Jr of the United States who is the candidate for deputy president, Ukrainian Chess Federation president Viktor Kapustin who is the candidate for treasurer, Malaysia’s own Abdul Hamid Majid who is the candidate for secretary general, and the two candidates for vice-presidents, Angolan Chess Federation president Dr Aguinaldo Jaime and woman grandmaster Alisa Maric who is also the vice-president of the Belgrade Chess Federation.

As I said earlier, this Fide election may be the most acrimonious in recent years. For the first time in many years, Ilyumzhinov faces a very serious opponent. The credentials of Anatoly Karpov speak for itself. People know him as the 12th world chess champion, having succeeded Bobby Fischer in 1974 and only giving up his world title to Garry Kaspa­rov in 1985. Truly, he is one of the greatest chess players of all time.

(Karpov and current Fide president Kirsan Ilyumzhinov (pic) will be contesting for the presidential post in September.)

However, Karpov’s very attempt at becoming the next Fide president has been full of obstacles, not least from within Russia itself. This is because Fide regulations require all candidates to be nominated by their own chess federations, and only one candidate at any one time.

And therein lies the problem because both Ilyumzhinov and Karpov are from Russia. The problem became even more complicated after both of them claimed to have their federation’s nod.

According to reports, the Russian Chess Federation had narrowly nominated Karpov as its candidate at a meeting in May. A few days later, at another meeting which was purportedly just shy of a quorum, Ilyumzhi­nov was nominated. The sticky situation became more absurd when the Russian Government sacked the president of the Russian Chess Federation and installed someone else to look after the federation’s affairs.

Lawsuits have also been flying around from both parties. Earlier, Ilyumzhinov had sued Karpov for libel. The former world champion fought back with a suit to force Fide to disclose the nomination forms of Ilyumzhinov’s team. At the heart of the matter was the status of Marinello because it was claimed that she was not a member of either the Chilean or Brazilian chess federations.

If the Court of Arbitration for Sport in Lausanne, Switzerland, rules in Karpov’s favour, it could mean the automatic disqualification of the whole of the Ilyumzhinov ticket because there’s also another Fide regulation that stipulates that at least one member of a ticket must be a woman candidate. It would be impossible for Ilyumzhinov to replace Marinello at the last minute.

In the meantime, both candidates are continuing to circle the globe to visit national chess federations and drum up support for their teams at the Fide election in Khanty Mansiysk, Russia. Yes, it’s going to be an intense but interesting fight indeed.

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Stash that cash

Posted on 14 July 2010 by ssquah

About a fortnight ago, I brought you a story about lost treasures. This time, it’s specifically about money that’s been long “forgotten” in a banking account. Don’t laugh, it does happen. Sometimes, it’s because the account owners are simply too lazy to go to the bank to close their accounts. Anyway, here is the story from the perspective of the United Kingdom. Circumstances may be slightly different in other countries:

Most people have lost the likes of a bank card, umbrella or mobile phone at some time. Surprisingly, though, many Britons also lose track of their savings and current accounts. Up to £15 billion is held in about half a million “dormant” accounts – where the bank or building society has been unable to contact the holder – but now there is a free website dedicated to reuniting this cash with its owners.
stashthatcash.jpg
Mylostaccount.org.uk brings together the tracing schemes of the British Bankers’ Association (BBA), the Building Societies Association (BSA) and National Savings & Investments (NS&I) – which also covers lost Premium Bonds – and allows users to start a search online. This involves completing as much as possible of a six-page form. To ease the ten-minute process, it is vital to have any account information to hand.

Forms are checked and then forwarded. If you know that your money was with HSBC, for example, your form goes to that bank’s tracing department. If you know that it was with a building society, but do not remember which, the BSA makes inquiries. And if you remember nothing about the account, beyond its existence, the information is passed to all participating institutions – all building societies and large banks. In the several cases where an institution has been taken over or merged, your search is referred to its successor.

Once you have submitted a search, you should hear back within three months, or one month for NS&I-only searches. Money held in dormant accounts is the property of the account holder and will remain so despite government plans to tap into the funds for good causes from next year. And institutions must keep basic account records indefinitely.

When an account is found, the institution will tell you how much money is in it, with interest accrued, and how to access it. If, however, you do not hear anything within the specified period, or the search draws a blank, you should contact the relevant organisation, at www.bsa.org.uk , or the specific institution, where possible. Should this fail, go to the Financial Ombudsman at financial-ombudsman.org.uk.

The web can help users to trace a range of further “lost” assets. Experi-an’s Unclaimed Assets Register, for example, at UAR.co.uk, has a data-base of life policies, pensions, unit trust holdings and share dividends from many companies. This can be searched for £18, 10 per cent of which is donated to Share Gift, the charity. For lost pensions, first try the Government’s free tracing service at thepensionservice.gov.uk.

Another website of interest has a much narrower target. Restore UK, at restoreuk.org.uk, is the BBA agency that aims to restore the British bank accounts of Holocaust victims to their heirs.

CASE STUDY A PREMIUM FIND

GEMMA CARR lost track of her Premium Bonds when she moved to Caversham, Berkshire, after studying in Edinburgh. The 29-year-old PhD student’s grandfather had given her £100 of bonds at birth and she had won “the odd £50” as a teenager, but she could not find any paperwork. “I called my mother, who suggested NS&I’s tracing service,” she says.

Ms Carr used the paper-based tracing service, collecting a search form from her local Post Office. She says that the process was quick and hassle-free. It turned out that an £80 prize had been reinvested in the bonds early in her childhood and that she had won £50 more recently. “I will keep the money in the bonds,” she says. “You never know when you’ll get lucky.”

She adds that the new online service would have made the process even more convenient.

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New champions

Posted on 2 July 2010 by ssquah

The first thing that I’ve got to do this week is to admit that I was wrong with my prediction two weeks ago. Yes, I was wrong because this year, a teenager did not run away with the title of national chess champion.

Instead, the honour this year went to Tan Khai Boon. Although he’s 28 years old, not in the same age group as our national chess champions of the past few years, but he certainly is still young enough to prove to be the equal of any of them.

He is known well enough in local chess circles but if you don’t know him, let me tell you that when he is in his best form, he can be a very tough nut to crack. At the national championship, he has shown that this was indeed very true.

Now before I say anything more, I must mention here that both of this year’s national championship and national women’s championship met with an unprecedented number of entries: 94 for the national and 44 for the national women’s. These numbers brought wide smiles to the Malaysian Chess Federation as well as to the Universiti Kebangsaan Malaysia which co-hosted the events at their campus.

The only possible setback when a field is too large is that even with nine rounds, it can be possible for a tournament to finish with some of the top seeds playing with one another much later in the event. Sometimes, they may not even get to meet. This is a recognized trait of the Swiss pairing system. Because of this and under the right conditions, a large-player field can sometimes mean a sprint towards the finish line for some players.

Anyway, Tan entered the national championship not as the top-seeded player. He was only ranked fourth in the tournament and he lost the very first game that he played. Losing in the first round is not a very good omen for any player because for the rest of the tournament, he will have to play “catch up” with the tournament leaders.

This was precisely what happened to Tan. He picked himself up after the loss and gave chase to the leaders. For the next five rounds, he was always one step behind them. He kept pace with them but somehow because everyone was sprinting forward at the same time, he never seemed able to over-haul them. Not until the sixth round, anyway.

He was lucky. In the fifth round, the leaders began to falter as the pressure set in. Mohd Nabil Ahmad Hisham, one of them, had breezed through his first four games to lead the standings but now, he couldn’t keep up with his own blistering pace. With a draw in the fifth round, he suddenly found himself tied on equal points with Yeoh Li Tian and Mohd Tariq Amru.

In the sixth round, all these three players could do no better than to draw their games. In the meantime after Tan got over his first-round loss, he kept his cool and began winning one game after another. By the end of the sixth round, he now found himself tied with Mohd Nabil, Yeoh and Mohd Tariq as the joint tournament leaders.

It was at this point in the championship that Tan realized that maybe, just maybe, he did have a realistic chance to pull ahead of them and go on to win the tournament. But there were still three more rounds to go.

Regardless, he pushed on. Mohd Nabil kept up with him, but both Yeoh and Mohd Tariq lost their games. So by the end of the seventh round, it was down to a two-horse race.

By now, the pressure on the players had crept a notch higher. Who would be the first to capitulate? In the eighth round, the two top contenders finally played one another. Imagine, it took eight rounds of this 94-player tournament before the top two front-runners could face off. How would they fare in this game?

Unfortunately, Mohd Nabil’s form imploded and left Tan as the sole leader of the tournament. So, before the start of the final round, Tan already held a one-point lead over the rest of the field. A draw would be enough for him to clinch the title but he cruised through with his last victory. Eight straight wins in nine games had landed him with the Tun Hussein Onn challenge trophy and the title of Malaysia’s newest national master.

Over in the national women’s championship, the race to the finish was just as tense once Alia Anin Bakri faltered in the defence of her title. She got off to a breezy start but she then gave away a draw in the third round. A fifth-round loss meant that her effort to retain her title was effectively over.

So all eyes now turned to both Fong Mi Yen and Tan Li Ting who were both seeded just below Alia in this tournament.

In the fourth round, both of them met. That’s the other trait of a Swiss pairing system. When the number of participants is smaller, the chances of the leaders meeting early would increase almost proportionately. Here with only 44 players, it wasn’t a surprise that this had happened in the fourth round and there were still five more rounds to go.

Anyway in the fourth round, Mi Yen got the better of Li Ting to take sole lead of the national women’s championship. It was a lead that she held on tightly to until the end of the tournament despite losing in the sixth round to Amira Shahmina Zulkafli.

That sixth-round loss actually allowed Amira Shahmina to level up with Mi Yen as co-leaders but Amira Shahmina could not keep up the momentum and promptly dropped half a point behind by the end of the next round.

By contrast, Mi Yen kept her cool to collect two more points in the seventh and eighth rounds, and a draw in the ninth round was enough for her to be declared as the new national women’s champion. With it went the title of national woman master and the opportunity to hold the Tan Sri Sabbaruddin Chik trophy for one year.

Top six players in the national championship: Tan Khai Boon 8 points; Edward Lee and Kamal Ariffin Wahiduddin 7 points each; Yeoh Li Tian, Mohd Saprin Sabri and Nik Ahmad Farouqi 6½ points each.

Top seven players in the national women’s championship: Fong Mi Yen 7½ points; Tan Li Ting, Amira Shahmina Zulkafli and Nithyalakshmi Sivanesan 6½ points each; Alia Anin Bakri, Puteri Rifqah Fahada and Camila Johari 6 points each.

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Snippets: always be within reach

Posted on 30 June 2010 by ssquah

Always be reachable when you are applying for a job. As mobile phones with pre-paid plans have become rather affordable, getting one would be advisable as you can then be contacted wherever you are. Other points of contact that you may want to include are your email address, home address and home telephone number. An email account is easily available on the web and you can get one for free. Be ready to be contacted and constantly check your emails for our job alerts!

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Lost treasure

Posted on 29 June 2010 by ssquah

I came across this interesting story in The Times newspaper quite some time ago. Do note that the article was written with the United Kingdom in mind. In Malaysia, there is something similar called the Unclaimed Moneys and if your money lies dormant and unclaimed in the bank for more than seven years, it will be transferred to the Treasury of the Ministry of Finance.When I was still working in the banking industry more than 10 years ago, the banks would start to transfer the money in dormant accounts to the Unclaimed Moneys in January or February of every year. Normally, the amounts in the accounts are rather small but once in a while, there will be rather substantial amounts that are transferred out. Anyway, here is the newspaper story:

Millions of savers may be worrying about falling interest rates – but, in fact, many already have hundreds or even thousands of pounds lying untouched in forgotten accounts or investments.

losttreasure.jpgMany banks and building societies have stepped up their campaigns to reunite customers with lost cash before the Government pools dormant accounts for “community use” next year. Similarly, large companies increasingly are using specialists to track down shareholders who have gone off the radar.

Towards the end of 2009 the Government is going to pool the £1 billion lying in dormant bank and building society accounts – those in which there has been no customer-initiated activity for 15 years – and place the money in one FSA-regulated central reclaim fund.

This fund will then be “reinvested in the community”, particularly in youth services and financial inclusion schemes, across the UK. However, if someone later comes forward to claim their money, the fund will be used to pay account holders.

So while there is no urgent need to claim your cash before it is spent on disadvantaged youth, it is still a good idea to claim assets as soon as possible – after all, the money is yours.

Rachel le Broqc, of the Building Societies Association, says that there are many reasons why accounts become dormant. She explains: “People move house and forget to inform their building society or bank of their new address; childhood accounts become forgotten; or people pass away and their heirs may not be aware of the existence of such accounts.”

An amendment to the Banking Code this year meant that all banks now have to make an effort to reunite customers with their lost assets. Halifax, Lloyds TSB and HSBC have all introduced reunification programs recently. HSBC, which is writing to customers who have not used their accounts for more than two years, says that the average amount in a dormant account is £1,400, although it has 17 accounts with balances of more than £100,000.

However, you do not need to wait for your bank to contact you. Simply go online at www.mylostaccount.org.uk to search for lost accounts. The website covers 42 banks, all 59 UK building societies and all National Savings & Investment products. It was introduced at the start of the year and receives about 760 searches a day. Although the service is free, you could have to wait up to 12 weeks for a response to your search.

With the large number of takeovers and mergers of UK-listed companies, it can be difficult for shareholders to keep track of their holdings. And if you move house and forget to inform your stockbroker or the share registrar, assets may soon become “lost” and any dividend cheques may not reach you.

The Unclaimed Assets Register has a database of unclaimed life policies, pensions, unit trust holdings and share dividends drawn from many companies. It may be able to help if you vaguely recall paying into a policy in the past but have lost the paperwork and forgotten the name of the company. It can also help to track down policies of a deceased person.

The service, run by Experian, charges a one-off fixed fee of £25, regardless of the outcome of the search – only about 10 per cent of searches are successful. But when assets are found, the average payout is £6,000. Go to www.uar.co.uk, or call 0870 2411713.

Richard Hunter, of Hargreaves Lansdown, the independent financial adviser, says: “If you remember owning company shares but have lost your share certificate, approach the registrar of that company and request a new one – this costs about £25. If you find an old share certificate, either yours or that of someone who has died, contact the registrar named on the certificate. There are now only three registrars – Capita, Computershare and Equiniti.”

You may be contacted by an asset reunification company. These specialise in reuniting “lost” shareholders or beneficiaries with assets that are rightfully theirs. Many large companies have hired such specialists to track down lost shareholders. For example, BT, Southern Water and O2 have hired a company called Prosearch, which is owned by Equiniti, while National Grid, Alliance & Leicester and British Airport Authority have hired Capita Tracing Solutions.

Such companies are likely to contact you in writing and ask you to confirm your identity details, such as your previous address, before telling you what assets you can claim. Unfortunately, the asset reunification industry is unregulated – companies cannot register with the Financial Services Authority – so before entering into correspondence with any company that sends unsolicited letters, make sure that it is legitimate (see box, right).

There will also be a fee. For example, Prosearch charges about 12 per cent of the value of assets reclaimed. If there is a large sum involved, you may wish to do the legwork yourself.

Some companies, such as Fraser & Fraser and Title Research, specialise in tracking down beneficiaries of a person who has died without leaving a will and with no obvious next of kin. Fees can vary from 5 per cent for the recovery of cash in a bank account to 40 per cent for the recovery of a large and complicated estate from overseas.

In these cases, you may have never even heard of the family member who has died – so tracking down such assets yourself, without the help of a specialist, can be almost impossible.

Neil Fraser, of Fraser & Fraser, says: “If you have lost touch with a family member and think that you might be an heir, you can search for the will through the Probate Registry. For details, go to ancestor-search.info/NAT-Probate.htm or call 01904 666777. If no will was made or you are not aware of any lost relatives, then you will have to hope that we come knocking on your door.”

Caution is key

- Legitimate asset reunification companies rarely approach potential clients via e-mail. Never disclose personal information to the sender of an unsolicited e-mail. For general advice on avoiding internet-based scams, visit GetSafeOnline.org.

- A letter should include the company’s address and phone number – check that these are listed in the Yellow Pages and visit the company’s website, which should appear professional. All genuine companies are listed on the Companies House website at www.companieshouse.gov.uk.

- Be wary of any company that promises money in exchange for an upfront fee. The fees charged by legitimate companies are normally a percentage of the total assets reclaimed. However, this should always be discussed and agreed in advance.

- If a company claims to be owned by another, call the latter – on a number you have sourced yourself – to check.

- If you suspect a scam, do not respond. Instead, contact Consumer Direct on 0845 4040506, or report it online, using the “report a scam” form at ConsumerDirect.gov.uk.

CASE STUDY: Unexpected windfall

Frances Blackmore, a retired English teacher from Brighton, recently received £1,700 from “lost” shares in O2, the mobile phone company.

Mrs Blackmore, right, received a letter from Prosearch, the asset reunification company, asking for identity confirmation to reunite her with some unclaimed assets.

“The letter was quite vague and I wondered at first if it was a scam,” she said. “But after making some inquiries about the company I decided to go ahead and reply. I was then told that I held 1,026 shares with O2, which is now owned by Telefónica, worth £2,052.”

Mrs Blackmore thinks that her late husband held shares in British Telecommunications (BT), from which O2 demerged in 2001, and that these were overlooked when his estate was settled.

Prosearch charged Mrs Blackmore a fee of £256 for its service, 12 per cent of her holdings, which reduced her payout to £1,736 after VAT.

“I know that I could have tracked down the shares myself, but I decided to pay the company for doing the work for me. The process was very easy. Once I had agreed to the service, I completed a claim form and received the cheque within two weeks. It was an unexpected windfall so I’m pleased.”

And now you need a safe bolt hole

Given the financial crisis, it is likely that you will want to keep any reclaimed money as safe as possible, writes Mark Bridge. Finding a haven that offers a return can be a headache, though, especially when savings rates have tumbled with recent base-rate cuts. Here Times Money lists the options.

Savings accounts: Dennis Hall, of Yellowtail, the independent financial adviser (IFA), says that cash is the most obvious refuge in a credit crunch. He adds: “It is best to spread your money over the best-paying savings products on the high street.”

You can compare deals at comparision websites, such as Moneysupermarket.com, and in the best-buy tables in Times Money (see pages 10-11).

Kevin Mountford, of Moneysupermarket.com, says that the best rate for an instant-access account is now 6 per cent, from Tesco Personal Finance. This is an internet account, however, and the headline rate includes a 12-month 1.5 per cent bonus on a much less competitive underlying rate of 4.5 per cent. Note also that the bank is “reviewing” its rates in light of the latest cut in the base rate.

Mr Mountford adds that customers willing to lock in their money can secure a rate of 5.75 per cent for one year with Anglo Irish Bank’s fixed-rate bond. He also suggests a regular saver account, saying: “You have to put in money every month, but you can get rates of 6 per cent with Barclays and Halifax.”

When spreading money between accounts, remember that an individual’s savings are guaranteed up to £50,000 per financial group and that different brands may be part of the same group. For example, Halifax and Birmingham Midshires are both part of HBOS.

Isas: Mr Mountford urges savers to look at their tax-free Isa options. “Do not wait until the April deadline,” he says. “Rates may fall, so it’s best to get in now.”

He adds that Nationwide’s cash Isa options are the most competitive right now, paying up to 4.25 per cent.

Money market funds: These are sometimes considered the safest place after cash and bank deposits. Mr Hall says that they can offer a better return than the latter, but choosing the right fund is critical. “They are for those with significant cash – and seek advice,” he adds.

Premium Bonds: These offer the chance to win prizes up to £1 million in place of interest payments. However, the payouts depend on interest rates – and recent base-rate cuts mean that standard savings accounts are more competitive.

Gilts: Index-linked government bonds pay a set rate above inflation and can be purchased from the UK Debt Management Office (DMO.gov.uk) or through a stockbroker. However, Mr Hall says that they are currently overvalued.

Index-linked savings certificates: These products from National Savings & Investments offer tax-free returns and pay guaranteed interest at 1 per cent above inflation over three and five-year terms.

Gold: The most ancient safe haven has performed well in recent weeks, with the price per ounce climbing from less than $700 in late October to about $830 this week.

Investors can buy gold through exchange-traded funds (ETFs), which track the gold price and can be bought through a stockbroker and held tax-free in an Isa. Alternatively, you can buy bullion – kept in secure storage for a small fee – at Bullionvault.com. Mark Dampier, of Hargreaves Lansdown, the IFA, is “bullish” on gold and says that investors should put about 5 per cent of their portfolio into the metal.

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Your move, Fischer

Posted on 25 June 2010 by ssquah

Claimants from the far-flung corners of the earth battle for Fischer’s estate.

THE great Bobby Fischer may have died more than two years ago but even from his grave in Iceland, he continues to command a lot of attention.

The latest news to surface is the decision by the Supreme Court in Iceland to have his body exhumed to prove a paternity case.

It seemed that when Fischer died in January 2008, nobody thought of preserving any blood sample for DNA analysis. But then, at that time, nobody expected that he would be at the centre of an inheritance battle.

Blood ties? Bobby Fischer in happier times with Jinky Young and Marilyn Young. – Picture from Chessbase.com

Yes, there is an on-going court battle for Fischer’s estate. He is said to have left an estate worth about US$2mil (RM6.4mil). This estate is now being claimed by various parties from far-flung reaches of the earth because he died without a will.

One of the parties is Fischer’s two nephews, Alexander and Nicholas Targ, who being the sons of his sister would seem to be the closest living blood relatives of the deceased former world chess champion in the absence of other claimants.

However, there are other claimants to Fischer’s estate. In the last years of his life, even before his sensational detention at Tokyo’s Narita international airport in 2004 for travelling on a revoked American passport, he had developed a close relationship with Miyoko Watai.

Watai herself is a chess player and holds the title of woman international master.

At one time she was the acting president of the Japan Chess Federation.

It is known that Fischer and Watai had been living together in Tokyo.

Even after he had been granted Icelandic citizenship in 2005, Watai continued to travel to Iceland to be with him.

Of course, the validity of Fischer’s marriage to Watai loomed large in the battle for the chess grandmaster’s estate, it being disputed by the two nephews.

It is believed that an Iceland lower court had accepted that their marriage was registered legally and had been certified in Japan but there are now even conflicting reports about this.

In any case, there now emerges a fresh twist to the inheritance joustings. From the Philippines came word that about 10 years ago, Fischer had a Filipino girlfriend, Marilyn Young, and he could have fathered a young girl named Jinky who is now nine years old.

According to Jinky’s mother and their lawyers in Manila, they have proof that Jinky is related to Fischer and he had accepted the girl as his daughter.

They said that he had been sending Jinky money and toys regularly, and signing off on his letters and postcards to her as “daddy”.

Images of the postcards floating on the Internet showed Fischer’s purportedly famous handwriting.

However, the court could not consider them as conclusive or indisputable proof of the blood ties between Fischer and Jinky. To prove a link, Jinky’s lawyers demanded for DNA tests on Fischer.

Jinky had already given her blood to a hospital in Iceland but it was then learnt that the hospital where Fischer was last warded did not keep any of his blood samples.

In the absence of Fischer’s DNA specimens, Jinky’s lawyers then petitioned the court for exhumation, a move opposed quite naturally by the other claimants. When the District Court of Reykjavik turned down the petition, the lawyers turned to the Iceland Supreme Court and won.

It’s now expected that the exhumation process may be carried out soon, maybe within the fortnight.

But if anyone thinks that the battle for Fischer’s estate could soon be over, there is yet another twist in the tale.

The last claimant to Fischer’s estate is the United States Government itself. While he was alive, the United States was already hunting him down as a fugitive from their law.

All because in 1992, Fischer had thumbed his nose at an American-sponsored United Nations embargo on dealings with the former Yugoslavia Republic, to play a highly publicised 24-game chess match with his old adversary, Boris Spassky.

He won millions from this match and now in his death, the US Government is claiming for unpaid taxes from the estate. This is because Fischer, despite dying as an Iceland citizen, was a United States citizen for almost all of his life.

Until 2004, he was still an American citizen. But his detention at the Narita international airport changed all that. During the months that he was detained and fighting deportation to the United States, he gave up his American citizenship and was stateless until the Iceland Government voted to give him their citizenship.

I don’t know what other surprises the late great Bobby Fischer can toss up from his grave but in the meantime, the world is closely watching the outcome of the exhumation. It’s your move, Bobby Fischer.

Posted in Chess, Rockwills & Inheritance | 2 Comments

When you die owing money…

Posted on 22 June 2010 by ssquah

I haven’t read a clearer story than this one from The Times. It’s so clear that I feel the need to share it with everyone I come across. The gist of the story is that your debts are never written off when you die. When you die, creditors will still have a claim on your assets.

With many of us in debt nowadays, increasing numbers of people die owing money, or leave money to beneficiaries who are in the red.

Many people mistakenly assume that their debts will be written off when they die. In fact, their creditors will still have a claim on their assets, including, potentially, their share of a jointly owned home. Similarly, if you leave money to someone who is in debt, it may be that person’s creditors who inherit. Robert Reid, president of the Personal Financial Society, says: “Most people assume that their debts are extinguished on death, but an estate is still liable and property can end up being sold to clear the debt.”

gravemisunderstanding.jpgWhere people own a property with their spouse, or civil partner, they do so either as “joint tenants” or “tenants in common”. Most couples have a joint tenancy, so that when one dies, the surviving partner inherits the other half automatically. With tenants in common, each partner owns a part of the property, which they can leave to whoever they wish. But neither form of ownership protects the deceased’s share of the property from creditors.

Beneficiaries can inherit only after funeral expenses, inheritance tax and creditors have been paid. Giles Hindle, of Beachcroft LLP, a law firm and specialist in debt recovery, explains: “Where a couple have joint tenancy of a property, it would appear that the executor has no access to it to pay off the deceased’s debts. But if the debts outweigh the deceased’s other assets, the creditors could petition for an insolvency administration order up to five years after death and could then require the property to be sold to pay off the debt.”

Mr Hindle says that personal insolvency administration orders are rare, partly because of a lack of creditor awareness. Another factor is that most debts nowadays are to credit-card companies, which he believes do not want to attract bad publicity, so may decide to write off the debt.

Putting property in a partner’s sole name may not protect it from creditors. Unless the transfer had taken place at least five years before death, it could be seen as an attempt to avoid paying your creditors, which means that a trustee in bankruptcy could seek access to those assets.

Life assurance

The best way to ensure that debts are paid off on death is to take out life assurance.

Mortgages should always be covered by life assurance, while families with dependent children should take out further life insurance to protect them against financial hardship in general, in case a parent dies. But it is important that this type of cover is written in trust to ensure that it is not paid into the deceased’s estate and claimed by creditors.

Jane Wheeler, of the independent financial adviser Direction Financial Planning, says: “We advise people to put policies in trust because it saves having to wait for probate – the money goes straight to the family and it also keeps it out of the estate for inheritance tax purposes. But if the deceased has any debts, there is also the advantage that it would not be available to creditors.”

Normally, life assurance companies provide appropriate forms to put a policy in trust when it is taken out. If you have a policy that is not in trust, ask your life company if it can be altered. Similarly, if you have an oldish personal pension policy, such as an annuity taken out before 1988, you will need to check that it is in trust.

Discretionary trusts

Even if you are not in debt when you die, your beneficiaries might be. Peter Nellist, a partner at Clarke Willmott, the firm of solicitors, points out: “If one of your beneficiaries is seriously in debt, the assets you leave could end up being paid to that beneficiary’s trustee in bankruptcy. The usual defensive position is to write a discretionary trust, which puts up a shield.”

This way the trustees can decide on the most appropriate time to hand over the bequest to your beneficiary.

For free advice on debt, you can contact National Debtline (0808 8084000, nationaldebtline.co.uk), the Consumer Credit Counselling Service (0800 138111, www.cccs.co.uk) or Citizens Advice (adviceguide.co.uk).

Wills

Even if you have no creditors, the “wrong” people could benefit from your death if you have failed to make a will or keep it up to date. Marriage or re-marriage, for example, invalidates an existing will and intestacy rules will apply, as if you had not made a will.

If you die intestate and have no children, your surviving spouse or civil partner is entitled to the first £200,000 of your estate – £450,000 from February. The remainder is divided among your parents, siblings and other relatives.

If you have children, your surviving spouse or civil partner currently receives the first £125,000 – £250,000 from February – and a life interest in half the remainder, with the other half passing to your children. If you have no spouse, civil partner or children, your other relatives inherit. An unofficial live-in partner may receive nothing.

You can draw up a basic will in return for a charity donation of £75 at willaid.org.uk. Alternatively, call 0300 0300013 to find a local solititor.

Case study

Suzanne Carty, 32, and her husband Peter, 36, a taxi driver, from Sunderland, recently took out life insurance policies that they have put in trust for each other and their children, Hannah, 6, and Joel, 2.

Mrs Carty, a nursery nurse, explains: “We had insurance cover only for our mortgage. We realised that if something happened to one of us it would be difficult for whoever was left to manage financially. We took out separate policies for £250,000, rather than a joint life policy, so that if one of us dies the other will still have cover.”

She says that Lifesearch, the intermediary, recommended putting the policies in trust, adding: “This way, if the worst happens, the money will go directly to whoever survives and help to secure the children’s future.”

Posted in Rockwills & Estate planning, Rockwills & Inheritance | Tagged , , , , , , , | 10 Comments