UFO Info Week-End

The funds kept paying out during the bad years and they

The funds kept paying out during the bad years and they still have further to drop.”Q I took out free-standing AVCs [additional voluntary contributions] with Scottish Amicable, now part of Prudential, in 1981. In bad years your return looks better than is justified by the performance of the shares.The downside is that as the market recovers you do not see the full benefit of this. The bonus rates declared in 2003 were based, after the smoothing effect, on 2002 returns and the impact of 2003 performance will be felt in 2004 You may expect returns to improve, marginally, next year. But Tom McPhail, of adviser Hargreaves Lansdown, warns: “We expect pay-outs on with-profit investments to continue to fall. AJ, by e-mail.Abbey accepts that it was partially responsible for the survey delay and in not returning your calls. It is reimbursing your £500 survey costs.Q In November last year, Eagle Star wrote to tell me that my endowment was on track to pay off the underlying £27,000 mortgage.

This year it has written to say I should expect a shortfall of £2,000 Share prices have recovered strongly in the last year. What’s going on? JM, Sunderland.You are invested in a with-profits fund, which smoothes the impact of stock market volatility. Your children as minors cannot give a valid receipt.”If there is no receipt clause and/or the legacy is conditional on your children reaching 18, the trustees must look after the money in trust until then. The best thing is to ask the solicitor and your father to appoint you and your wife as trustees. You could invest the money within the trust or apply funds for the children’s benefit.”Q I arranged a mortgage through Abbey and asked for the arranged survey to be upgraded to a Homebuyers report in mid-October.

Because of confusions between the other parties, my survey has been delayed by more than a month.I have been consistently given wrong information by Abbey which led to further delays The exchange of contracts is now held up. You might also see a solicitor yourself to explain the provisions. If the will specifies the money is left to your children at 18, it must be held in trust until then.”If the legacy is to them outright, the executors may choose (but are not obliged) to hand the money to you if there is a clause in the will allowing you or your wife to give a valid receipt for the money for your children. “Makes such as Gretsch, Rikenbacker and Epiphone up to the end of the 1960s are also worth looking at,” Mr Newman says.Finally, if you are prepared to take a gamble on a modern classic which could gain collectible status in the future, Mr Alcantara suggests looking at newer companies such as Paul Reed Smith.