Triassic Posted October 27, 2019 Share Posted October 27, 2019 You’ve built the house and it’s been valued and you think wow that’s worth more than I thought! Has anyone thought about Inheritance Tax Planning? How do you ensure the Tax man (or the old folks home!) don’t get their claws into your wad. Asking for a friend. Link to comment Share on other sites More sharing options...
scottishjohn Posted October 27, 2019 Share Posted October 27, 2019 (edited) thats a question for your tax and investment advisor -- you could ,if you trust your kids gift it to them 7years before you die , and then pay them rent --on paper ,which could become an oustanding debt on you demise,which will come out of your hertiable assests even worse in scotland ,you cannot cut bad kids out of your will 30% of your hertiable assets have to be split equally between your off spring --no way round that as i understand it you can only mitigate it not get rid of it totally talk to a professional --well worth the fee in the long run the simple solution is spend it all an get in debt .LOL they can,t it if you don,t have it my situation is complicated and I have had to write. will , a sort of a trust , that puts my assets into partners nameto use as she thinkks fit -- and only when she dies do her kids get a chance to get my assests and only then the bad ones get sod all --who knows they could change the law again by then and it may not work Edited October 27, 2019 by scottishjohn Link to comment Share on other sites More sharing options...
Triassic Posted October 27, 2019 Author Share Posted October 27, 2019 No SKIing for us, we don’t have kids. Mind you, we will be trying our best to spend or gift as much of our cash as we can. I was just interested on other people approach to the problem. Link to comment Share on other sites More sharing options...
scottishjohn Posted October 27, 2019 Share Posted October 27, 2019 (edited) 3 minutes ago, Triassic said: No SKIing for us, we don’t have kids. Mind you, we will be trying our best to spend or gift as much of our cash as we can. I was just interested on other people approach to the problem. you know what happened to shumacher !! take up horses thats even more dnagerous and expensive so if no kids who is going to benifit from your demise.-- If no one then you will should read "being of sound body and mind -- I spent the lot and the tax can have the debts" LOL Edited October 27, 2019 by scottishjohn Link to comment Share on other sites More sharing options...
newhome Posted October 27, 2019 Share Posted October 27, 2019 I don't have kids either but even if I did I would want to leave myself comfortably off to ensure that I could afford to pay for a decent care home if needed, and not some shithole I got shoved in because I'd given my money away to ensure that my estate wasn't subject to inheritance tax once I was dead and wouldn't care anyway. My mother always said not to expect a big inheritance as she intended to spend her money in retirement, and that's fine because she (and my father) worked for her own house / money, just as I am working for mine. I will be downsizing to a smaller property when I retire, although probably more expensive due to location change. Link to comment Share on other sites More sharing options...
ProDave Posted October 27, 2019 Share Posted October 27, 2019 My Mother's motto was she wanted to grow old disgracefully. The reality was she grew old with dementia in a care home, but at least she was well looked after. And we watched our inheritance dwindle to not very much at all to pay for it. such is life. Link to comment Share on other sites More sharing options...
Jeremy Harris Posted October 27, 2019 Share Posted October 27, 2019 I thought my Mother had pretty much spent all she had, and knew she'd taken out an equity release on the farm, years ago, to give her a bit more cash. I was a bit gobsmacked a week or so ago to find that she'd left us all a pretty substantial inheritance, TBH, came completely out of the blue. Link to comment Share on other sites More sharing options...
joe90 Posted October 27, 2019 Share Posted October 27, 2019 @JSHarris so that’s how you can afford a spitfire flight? (Just joking). Link to comment Share on other sites More sharing options...
Sue B Posted October 27, 2019 Share Posted October 27, 2019 We finally got our wills done last month after 38 years of marriage. Our son and his wife have split up (they just about made their first anniversary!) and we don’t want her to get any of our money should we both get run over by a bus at the same time. It forced us to leave our son’s half of the estate to his son (in trust as he’s only 3) to make sure she can’t claim rights over it. As soon as they are divorced, we can revert back to him getting his half as normal. Kids! Puppies and kittens next time round for me! 1 Link to comment Share on other sites More sharing options...
Jeremy Harris Posted October 27, 2019 Share Posted October 27, 2019 2 minutes ago, joe90 said: @JSHarris so that’s how you can afford a spitfire flight? (Just joking). Yes, and the new Tesla... We'd already planned things so we have what we think will be enough of a savings buffer, together with our pensions, to sustain us in old age, plus a "holiday fund" that we've been saving towards for years, so we can have holidays each year. The inheritance came with instructions to not just put it into more savings, so I've opted to spend about half of it now, and will decide later what to do with the rest. Mind you, it's anyone's guess as to how much we may need in old age. I just hope that neither of us ends up like my grandmother, who spent her last few years not knowing who anyone was, or even where she was. If we had a pet that was in that state we'd do the "humane" thing, perhaps. 1 1 Link to comment Share on other sites More sharing options...
ProDave Posted October 27, 2019 Share Posted October 27, 2019 20 minutes ago, JSHarris said: Mind you, it's anyone's guess as to how much we may need in old age. I just hope that neither of us ends up like my grandmother, who spent her last few years not knowing who anyone was, or even where she was. If we had a pet that was in that state we'd do the "humane" thing, perhaps. That's how my Mother was. The last 2 times I visited she did not know me, and swore she had 2 daughters not a daughter and a son. She also kept on saying every few minutes "I wish I could move back to Oxford" and it was pointless telling her she was in Oxford, not half a mile from where she used to live. 1 Link to comment Share on other sites More sharing options...
joe90 Posted October 27, 2019 Share Posted October 27, 2019 Yes, been there with my Mum, as my brother said at her funeral “we lost her twice, once to dementia and once to life itself”. Might sound daft but when I had my old (17 year old) Labrador put down, not only did he have cancer but I was sure he had dementia as he didn’t seem to recognise even me and I had him since a puppy. I hope someone shoots me if I get that bad. (I agree with dignitas!). 2 Link to comment Share on other sites More sharing options...
newhome Posted October 27, 2019 Share Posted October 27, 2019 I hope not to be like that as most people do I imagine. Maybe we should all look at making a living will too. My mother is 85, still living alone independently and went on 3 foreign holidays last year. I'm keeping my fingers crossed that's me too! 1 Link to comment Share on other sites More sharing options...
recoveringbuilder Posted October 27, 2019 Share Posted October 27, 2019 I’m having one of those days today when everything is annoying me! Started off with the brickie who was meant to be coming this weekend to get on with the garage and of course didn’t turn up so now it’s going from one thing to another all the little niggling things and reading this post I’m now annoyed about something that happened in the 80s! My father died in 1980 , 5 months after I was married, my mother was allocated a brand new pensioners house and was over the moon she’d never had anything like it, unfortunately she only lived a year after getting it , taking a massive stroke at only 67 but I now am thinking about all the hassle she had in that last year with that new house! A coal fire with a back boiler for the heating (she’d never had central heating before) it was totally useless, kept blowing back into the room and the council were at a loss what to do with it, an outside door that wouldn’t close or lock if it was frost and so it went on. I can’t help but think she would have been better if she’d stayed where she was and might have lasted longer. See what I mean? You only need one thing to annoy you and it turns into the domino effect ? Link to comment Share on other sites More sharing options...
Ferdinand Posted October 27, 2019 Share Posted October 27, 2019 (edited) In England, October is free will month. You have until Wednesday. ? ? ? ? If you last that long ? Google it. Everybody else has free will month at different times. F Edited October 27, 2019 by Ferdinand 1 Link to comment Share on other sites More sharing options...
Ferdinand Posted October 27, 2019 Share Posted October 27, 2019 (edited) Lasting Power of Attorney is also of critical importance. We got those in place for mum last year, and it is helping. From an investment point of view, this series of 5 vids from property tribes about the 'Wealth Pyramid' is interesting. Don't necessarily agree with all of it ... but interesting. https://www.propertytribes.com/taking-personal-responsibility-for-the-future-t-127640668.html (I somehow feel that this new car of @JSHarris's should wear purple.) Ferdinand Edited October 27, 2019 by Ferdinand Link to comment Share on other sites More sharing options...
Jeremy Harris Posted October 27, 2019 Share Posted October 27, 2019 16 minutes ago, Ferdinand said: In England, October is free will month. You have until Wednesday. ? ? ? ? Google it. Everybody else has free will month at different times. F First I'd heard of this, seems like a really good idea, and a way to get a bequest to a charity included in wills: https://freewillsmonth.org.uk/ Link to comment Share on other sites More sharing options...
newhome Posted October 27, 2019 Share Posted October 27, 2019 40 minutes ago, JSHarris said: First I'd heard of this, seems like a really good idea, and a way to get a bequest to a charity included in wills: https://freewillsmonth.org.uk/ We did it here in Scotland and I think they suggested an £80 donation to charity for doing the will so that's what we did. Link to comment Share on other sites More sharing options...
Onoff Posted October 27, 2019 Share Posted October 27, 2019 Going through the whole mixed dementia thing at the mo with my Mum. She has Alzheimer's and vascular dementia. I wouldn't recommend it! ? Too late to get LPA done for her (not for want of trying on mine & SWMBOs part). Our views were ignored by my father. Have managed to get LPA for him sorted but at a hugh cost (to him). Link to comment Share on other sites More sharing options...
newhome Posted October 27, 2019 Share Posted October 27, 2019 1 hour ago, Onoff said: Too late to get LPA done for her (not for want of trying on mine & SWMBOs part). Our views were ignored by my father. Have managed to get LPA for him sorted but at a hugh cost (to him). I think there would be zero chance of my mother agreeing to an LPA. Waste of time even having that conversation with her. Link to comment Share on other sites More sharing options...
Jeremy Harris Posted October 27, 2019 Share Posted October 27, 2019 4 minutes ago, newhome said: I think there would be zero chance of my mother agreeing to an LPA. Waste of time even having that conversation with her. Mine wouldn't have, either. Thankfully she was every bit as switched on when she became really infirm as she always had been. Stubborn, too. Practically every time we spoke she mentioned leaving us all an inheritance, to be split equally, and every time she mentioned it I told her I didn't need it, and she should just spend my share. Of course, being stubborn she refused. Link to comment Share on other sites More sharing options...
mvincentd Posted October 27, 2019 Share Posted October 27, 2019 (edited) 2 hours ago, newhome said: zero chance of my mother agreeing to an LPA you can set it up without it becoming 'actionable'(can't remember the correct term) so if your mum never loses mental capacity it wouldn't be relevant.....if she did, then someone's going to be making decisions on her behalf, she cant escape that fact. Edited October 27, 2019 by mvincentd Link to comment Share on other sites More sharing options...
newhome Posted October 27, 2019 Share Posted October 27, 2019 1 minute ago, mvincentd said: then someone's going to be making decisions on her behalf, she cant escape that fact. You clearly ain't met my mother!! . Honestly it would be wasted breath as she clearly will expect to escape that fact! Probably doesn't help that both her and my father's parents (and my father) were all perfectly capable of making their own decisions right up until they died. So it clearly won't happen to her either (in her view). Link to comment Share on other sites More sharing options...
Ferdinand Posted October 27, 2019 Share Posted October 27, 2019 (edited) 7 hours ago, newhome said: I think there would be zero chance of my mother agreeing to an LPA. Waste of time even having that conversation with her. Then it could be hellishly difficult, i am afraid, if something happens. ☹️ Edited October 28, 2019 by Ferdinand Link to comment Share on other sites More sharing options...
Temp Posted October 27, 2019 Share Posted October 27, 2019 If you leave a house to you children there is the "new" allowance... https://www.which.co.uk/money/tax/inheritance-tax/inheritance-tax-property-changes-asy688s1j5zj Link to comment Share on other sites More sharing options...
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