State pension - quick question

seven-day-weekend

Mrs_Money wrote: »

Just a small warning here...
Home Responsibilities Protection is only paid for every year you have been claiming child benefit that you have not earned anything at all. This caught me out when I got my forecast as I assumed I'd get HRP for every year I was receiving CB and of course, when the children were small, I had a temping part-time job (whilst also doing my degree) and I paid a little bit of NI and Tax, so they knew I had worked those years - even though it was only 2 or 3 weeks in the summer hols, I lost my home responsibilties protection for the whole year and then had NI contributions missing -some of which I have paid up since, to give me another couple of qualifying years. I'm okay now as I've found out I've got more than the necessary 30 qualifying years for my pension!
Just another thought if you get one of those NI statements saying you have contributions missing - if they are very small (one of my shortfalls was only £43) it may be worth paying them to get another qualifying year - hope that all makes sense!
No-one in government departments ever tells you these things!

You can earn something - I got it for all the years I was a lollipop lady as well as the years I earned nothing. You have to not earn enough to pay NI.

Savvy_Sue

jeannieblue wrote: »

ie - re IHT and CGT (I'm learning) - if you transfer funds or property over to son for instance - how long before I can die or whatever, before he gets stung for money by the leeches that reside in Westminster?

jeannie, I know nothing about CGT, but for IHT I believe it's 7 years, but that's on a reducing scale.

So, if you give him pots of money today, and peg out tomorrow, he pays IHT on the lot. I think after two years, he pays IHT on less, and it continues to go down each year after that until the 7 years are up.

However, there are some exemptions. It's something like you can give as many gifts of £250 to different people as you like, and you can give away up to £3000 per tax year (and perhaps backdate by one tax year?) without it being included in your estate. But the experts will correct me on this.

But do think of yourself first. None of us knows what the future holds, none of us knows what bribe the government or wannabe government of the day will offer next. There are, I believe, still a few ways of writing your will to reduce what goes in tax, while still enjoying the fruits of YOUR labours YOURSELF. And even if there aren't, I wouldn't rush into giving either money or house away now.

TomsMom

jeannieblue wrote: »

how long before I can die or whatever, before he gets stung for money by the leeches that reside in Westminster?

I'm not planning in pegging it just yet...

'Struth Jeannie, you just made me splutter my drink all over the keyboard :rotfl:

I've been following this thread as I became a pensioner in January. Haven't been able to offer you any advice but have found it interesting. Must say I am quite jealous that you are to receive £109 - I only get £105 :rotfl:

My kids wont get stung for any IHT - I intend to spend it all and keep telling them at regular intervals

elljay

I'm really grateful to Jeannie for asking this question, it's made me look again at my own forecast and thinking about where to go from here- I'm 57. (Good grief, why do cats walk all over the keyboard when you're trying to concentrate!!)

I had a go at the self assessment site and it comes out at about the same as the others, just over £100 a week. Unfortunately I managed to crash it so didn't have time to note the details, and there doesn't seem to be a facility for emailing the results to yourself. I wondered though why it asks about working in the civil service? And if you've paid the 30 years needed, can you now stop paying contributions and even get a refund back to whatever point the 30 yrs happened. I pay self-employed rate at the moment but also work for an employer so hope I haven't messed up the system, I don't pay NI on the employer pay. Although I'm still married we haven't been together for around 10 years so I don't know what difference that would make.

Like Jeannie I thought I'd have to work for ever and ever, it now looks as though it might not be that bad. Thanks Jeannie so much again for asking this question, everyone's answers have been brilliant.

Liz

chesky369

"I wondered though why it asks about working in the civil service?"

Not entirely sure, but it might well be something to do with the second part of the state pension (i.e. SERPS or SIPP, or whatever they call it now). The second part relied on pay-as-you-earn contributions but if you were in a civil service or other final salary or company pension, you were contracted out and did not contribute to it. Thus, people who didn't make alternative pension arrangements had a state second pension to fall back on (not much of a soft landing, but still).

elljay

oh dear, something else to worry about!!! I was in the Civil Service for less than 2 years so got all my contributions back. I wonder what the implications of that are?

It's so complicated!

Thanks

Liz

jeannieblue

It didn't ask me about the Civil Service

I feel left out...

jeannieblue

Savvy_Sue wrote: »

jeannie, I know nothing about CGT, but for IHT I believe it's 7 years, but that's on a reducing scale.

So, if you give him pots of money today, and peg out tomorrow, he pays IHT on the lot. I think after two years, he pays IHT on less, and it continues to go down each year after that until the 7 years are up.

However, there are some exemptions. It's something like you can give as many gifts of £250 to different people as you like, and you can give away up to £3000 per tax year (and perhaps backdate by one tax year?) without it being included in your estate. But the experts will correct me on this.

But do think of yourself first. None of us knows what the future holds, none of us knows what bribe the government or wannabe government of the day will offer next. There are, I believe, still a few ways of writing your will to reduce what goes in tax, while still enjoying the fruits of YOUR labours YOURSELF. And even if there aren't, I wouldn't rush into giving either money or house away now.

Hi Savvy Sue and others..

Aren't the government generous.. I can give away £250 to different people... We are so conned in this country. Can you imagine being told all of this if you lived in the States for instance? They'd be lynched (now that's an idea..).

Re my son.. (Hi tomsmom - I am a mother of a tom too) I have said for ages that if I won the lottery (hmmmm) I would not claim it in my name - no way., I would give him the ticket.

I am perfectly happy Savvy Sue to put anything in my sons name, or my sisters, or my nieces... We are a very weird family. We really care about each other and trust each other implicitly.

I know what you are thinking... Money changes people. Not us it doesn't. We did have a bereavement where money left was not divided how it should have been re the will. We sorted it out so that it worked out fair. The solicitor dealing with the probate was a tad gobsmacked to say the least.

jeannieblue

And..........

Don't want the greedy government that are making me poor right now, to get any more of my hard earned money!

As a motorist, they are killing me right now. I don't need to use heating as yet - so I am not suffering from hypothermia, but could do in a few weeks or so... who took the 'Great' out of Britain, old saying but very apt I think.

chesky369

Yes, I guess it'll be extra vests and liberty bodices this winter.