Self Directed Fund - Residential Property - Irish Life

D

Designjet

Registered User
Messages
49
Hi Guys,

Advice required. I have just received a letter from Irish Life telling me that they are closing my fund with my Trustee harvest Financial.
My fund is completely invested into a single apartment in Dublin with a sitting tenant and a rent roll into bank of Ireland, All very simple. The apartment was purchased in 2010. The cash is bank is growing nicely.

Irish life has now advised that I have 2 options: (A) Sell the apartment (which I do not want to do as it is doing nicely for me. or (B) Transfer my pension to an INDEPENDENT TRUSTEE COMPANY and continue on as I have previously.

MY ACTIONS:
1. A query has been sent to Irish Life of why they are doing this, if they are legal in doing this and basically they are changing the goal posts and arrangements I set up with them back in 2010. (I need your advice on this item)

2. I have contacted Harvest and asked why can they not continue as my TRUSTEE and do I have to transfer my Pension / Plan / Property by the deadline of the 29th May 2020.

3. My pension financial advisor has kept me in the dark on this matter. His advice isn't helpful.

4. Can I ask the ombudsman to have a look at this? as far as i'm concerned Irish Life are just dumping me and our prior arranged agreement.

ONE OF THE MAIN ISSUES HERE IS THAT HARVEST TRUSTEES AGREED AN 'AMC' OF 0.6% WHEREAS ITC AND OTHER TRUSTEE COMPANIES ARE LOOKING FOR 1%. I again confirm that this property just sits on its plot, generates a decent rent and is kept in cash. There is no minding on the Pension as the only outgoings are service charges, LPT and AMC, I have never spoken to the pension advisor or Irish Life on this Plan since 2010.

Also the current Covid issue is not helping as there offices of my advisors, harvest and IL are generally closed.

Thanks

DJ
 
Irish Life are closing their Self-Directed option. That’s just life. You should be able to replace it with a Self-Administered scheme with someone like Harvest for far less than 1%.
 
Well, Harvest for example...

They’re a pensioneer trustee, so you can hold your property through them via a self-administered scheme.

Alternatives would be ITC, Newcourt, and Acumen & Trust to name but a few.

I have no connection with any of these companies.
 
Thanks gekko... It was strange for them (IL) to state in writing that they were cancelling with harvest and to use ITC... At a higher AMC.

I'll speak with harvest on the matter and see will they switch to a self administered scheme. And keep the 0. 6%.
 
On a side note... What is the difference between self directed and self administered???
 
You could also get a quote from BCWM who look after my ARF which is invested in property.
 
Designjet said:
On a side note... What is the difference between self directed and self administered???
Click to expand...

Gordon Gekko said:
Self-Directed is provided by a life company as I understand it.
Click to expand...

They're the same thing really. Interchangeable these days.

I find it hard to understand why Harvest aren't involved in this in any way already? Are they not the trustees of your scheme?


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
SBarrett said:
They're the same thing really. Interchangeable these days.

I find it hard to understand why Harvest aren't involved in this in any way already? Are they not the trustees of your scheme?


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
Click to expand...
 
Yes, harvest are my trustees, but with nobody in the offices, I'm waiting for a call back... But basically, I'm thinking they can transfer my fund, to a self administered pension as opposed to self directed... It all sounds a pointless process, but I haven't heard back ftom any of the parties.
 

Harvest are a big firm, they should be able to take the investment under their structures. If it is a company pension, it will be a self administered pension. if it is a personal pension, it will be a self directed PRSA (as I said, the terms are interchangeable these days). It shouldn't be that difficult for them, an in specie transfer of assets.

I presume you are emailing them? A lot of companies aren't accepting phone calls as they can't record calls with people working from home.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Out of interest, Designjet, how did you fund the purchase of the property in 2010 - was this money already in your pension or were you able to get a mortgage of sorts for your pension?
 
mangled85 said:
Out of interest, Designjet, how did you fund the purchase of the property in 2010 - was this money already in your pension or were you able to get a mortgage of sorts for your pension?
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I'm going to take a guess at the answer to this one. It was permissible for a self-administered pension to borrow money in 2010 but it was very difficult to find a bank in 2010 who would be willing to lend, given the non-recourse nature of such a loan. Banks were still very cautious in 2010 as the banking crisis was still fresh in the memory. So I'll guess that Designjet had sufficient funds to buy without lending.
 
mangled85 said:
Out of interest, Designjet, how did you fund the purchase of the property in 2010 - was this money already in your pension or were you able to get a mortgage of sorts for your pension?
Click to expand...
I had my pension into cash in 2008...lucky move at the time.
 
Ah cheers. I looked into buying something for my pension around that time but I was told no chance so that makes sense.
 
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