This basic state pension accrues to the employed and the self-employed. That is sadly all that those who have been self-employed all their lives can expect from the state.

For the employed however there are additional amounts arising via the Second State Pension, the level of which is determined by their earnings history ie the total NI paid over the years. This pension could be as much as a further £120 per week. Some employees opt out of the Second State Pension by having their second-tier NI diverted to a personal pension scheme. There are arguments for and against this practice, which is not the subject of this adicle.

The first piece of advice is to obtain a FREE forecast of your state pension. This is done either by telephoning 0845 3000 168 or by going on to the internet via Google to Pension Service and after that to State Pension Forecast and How Do I Apply? You will need to know your NI number, date of birth and post code. You will be told your current entitlement to both basic and second state pensions and also what you can expect on retirement assuming you continue to make NI contributions at a certain level.

The second piece of advice can only be given once you have received your pensions forecast. This relates to the making of voluntary contributions (currently £7.55 per week ie £392 per annum) in order to make up missing years in your NI record and thus to enjoy the extra basic state pension generated by same.

You can only "go back" 6 years but if your NI record shows that you can only achieve the full 30 years with the help of voluntary payments, the effective return offered by maximising one's entitlement to State Pension in this way should not be ignored.

This may be a rare oppodunity for you to benefit from the State.

• Most trusts with an "interest in possession" - ie where the beneficiary named in the trust is entitled to the trust's income as it arises - will now have to pay Inheritance Tax (IHT) charges of up to 60/o of the trust's capital value every ten years ("ten-year charges") and charges of up to 40% when capital is put into the trust ("entrance charges") or taken out of the trust ("exit charges").

• There are transitional rules for interest in possession trust that were set up before 22 March 2006, which will mean that some such trusts will not be liable to the charges. Some such trusts created in wills will also remain exempt. But in both cases there are strict rules concerning who is allowed to benefit from the interest in possession.

• "Accumulation and Maintenance" (A&M) trusts set up so that trustees can use their discretion to pay income or capital to beneficiaries during their childhood must now "vest" absolutely when the beneficiaries reach the age of eighteen. Otherwise they suffer from the same inheritance tax charges as trusts with an interest in possession.

• Some trusts created for people with a disability, or for orphaned children, escape the charges, and there is a "halfway house" treatment for trusts where the beneficiary's interest vests by the time they are twenty five; the periodic charges will not apply, but the exit charges will.

• Finally, the Government have amended the rules to ensure that where, before 22 March 2006, a person settled the benefit of a life policy on trust, the periodic, entrance and exit charges will not apply.

The purpose of the new rules appears to be just another ploy to raise tax, so it is difficult to feel happy about them. But the "silver lining" could be that the new rules prompt you to review your IHT liability - if so, you will find that there are still ways to ensure that one of the major beneficiaries of your estate is not HM Treasury!

Some lawyers have a reputation for taking much too long to wind up deceased persons' estates and also for overcharging. We advise you to choose your executors carefully and to avoid including a professional firm. This gives your named executors freedom to:-
• consider completing the formalities themselves
• take professional advice as appropriate and obtain a quotation in advance.

With everyone trying to get a foothold on the property ladder and with rising interest rates, for many of us, the only way of obtaining an affordable mortgage has been to borrow on an "interest only" basis.

We would issue a word of warning - property prices cannot go on rising exponentially and borrowings must one day be repaid. This may be a statement of the obvious but those who bought property in 1990 at the top of the property market cycle will remember how rising interest rates led to "negative equity" and a huge increase in housing repossessions.

Legislation provides that banks cannot make an unfair profit from your being overdrawn (The 1992 Consumer Contracts Regulations). lf you have suffered from penalties and fees being arbitrally added to your overdraft - over and above normal bank charges - we suggest that you apply to your bank for a refund.
Here is a checklist:-
Obtain your bank statements for the last 6 years. Add up all the fees and penalties relating to your overdraft. Write to your bank asking for a refund of the total stating the law.

Your bank may offer you a partial refund. Refuse this and demand again the full amount. If your bank refuses a full refund, threaten to take the matter to the county or sheriff court. Fill in a claim at   www.moneyclaim.gov.uk.

Banks that refuse you the full refund have 14 days to enter an outline case (most will just pay up at the last minute). If your bank still refuses a refund, ask the court for a Warrant of Execution by completing form N323 in the Money Claim website - once this is granted, bailiffs can remove items from your branch to the value of your claim.

Just one caveat - make sure you have another bank lined up to replace your existing one - if you are successful in removing their furniture, you might just need one!

• That as from 1st January 2006 if you use the Revenue's fixed rate mileage scheme (first 10,000 @ 40p and thereafter at 25p) you need to keep sufficient petrol receipts to cover the relevant VAT? In general terms, your fuel costs will be the recognised 12p/mile on which 2p of VAT can be claimed - but keep sufficient receipts to cover the amount claimed!

• That there is a fantastic tool for looking up correspondence in your computer? Instead of using the "find" option in e-mail, you put your cursor on the Google Search icon and then type in what you are looking for - the operation takes seconds rather than minutes. Definitely worth using this in this piece of software.

• That lawyers earn a fortune from money held in their client accounts? lf you have money held for you by your lawyers, why not ask them to tell you the difference between the interest rate they earn from the bank and what they pay you? lt is your right to demand that your lawyers pay you a competitive rate of interest - if you don't like their answer, simply ask them to transfer your cash to your own bank - immediately!

• That H M Revenue & Customs are experimenting with enquiries which involve "a lighter touch"' These include "coaching taxpayers and correcting common weaknesses". About 14,000 taxpayers "may be invited to be involved". Please let us know immediately if you receive such an invitation!

• That the Chancellor's proposal to introduce a tax on property development proceeds (Planning - gain supplement ) has been Delayed until at least April 2009?

• That from 6th December 2006, the Chancellor has abolished income tax relief on term life assurance policies taken out as pension term assurance (PTA)

• That life assurance policies written in trust after 22nd March 2006 can still avoid being aggregated with your estate for the purposes of calculating Inheritance Tax (IHT) on death, so long as this trust is a bare trust (a trust which specifically names the beneficiaries - normally your heirs) and not a discretionary trust.

• That employers are increasingly offering employees the opportunity to work from home? This has been made possible by the internet and enables key workers who might otherwise have had to leave for personal reasons (a house move or family responsibilities) to be retained. Many jobs can be done just as easily and efficiently from home, there can be a saving on office space and the reduction in travel makes a positive contribution to the problem of global warming.

The London Stock Exchange and the Financial Services Authority (FSA) have issued warnings regarding unsolicited telephone calls offering investment advice or the opportunity to buy shares at a discount.

Be wary - according to a 2006 FSA survey, the average amount lost by investors is no less than £20,000!

If you have been struck by the disparity between the recent level of profits earned by the big banks and the quality of their service, then you will enjoy this ...

Dear Sir,

I am writing to thank you for bouncing my cheque with which I endeavoured to pay my plumber last month. By my calculations, three 'nanoseconds' must have elapsed between his presenting the cheque and the arrival in my account of the funds needed to honour it. I refer, of course, to the automatic monthly deposit of my pension cheque, an arrangement which, I admit, has been in place for only eight years. You are to be commended for seizing that brief window of opportunity, and also for debiting my account £30 by way of penalty for the inconvenience caused to your bank.

My thankfulness springs from the manner in which this incident has caused me to rethink my errant financial ways. I noticed that whereas I personally attend to your telephone calls and letters, when I try to contact you, I am confronted by the impersonal, overcharging, pre-recorded, faceless entity which your bank has become. From now on, like you, I choose only to deal with a flesh-and-blood person. Accordingly, my standing orders will no longer be automatic, but will arrive at your bank by cheque, addressed personally and confidentially to an employee at your bank whom you must nominate. Be aware that it is an offence for any other person to open such an envelope. Please find attached an Application Contact Status which I require your chosen employee to complete. I am sorry it runs to eight pages, but in order that I know as much about him or her as your bank knows about me, there is no alternative. Please note that all copies of his or her medical history must be countersigned by a Notary Public, and the mandatory details of his/her financial situation (income, debts, assets and liabilities) must be accompanied by documented proof. In due course, I will issue your employee with a PIN number which he,/she must quote in dealings with me. I regret that it cannot be shorter than 28 digits but, again, I have modelled it on the number of button presses required of me to access my bank balance using your phone service. As they say, imitation is the sincerest form of flattery.

Let me level the playing field even further. When you call me, press buttons as follows:

1 To make an appointment to see me.

2 To query a missing payment.

3 To transfer the call to my livinq room in case I am there.

4 To transfer the call to my bedroom in case I am sleeping.

5 To transfer the call to my bathroom in case I am attending to nature.

6 To transfer the call to my mobile phone if I am not at home.

7 To leave a message on my computer (a password to access my computer is required). A password will be communicated to you at a later date to the Authorized Contact.

8 To return to the main menu and to listen to options 1 to 7.