Inheritance Tax Article MoneySavingExpert.com Discussion

margaretclare

Hi

I think Jake's Gran has a problem. There's only so much 'stuff' that you can accumulate. World cruises and diamond rings may not appeal. Someone with a well-established saving habit and a comfortable but not extravagant lifestyle, as Jake's Gran seems to be, will accumulate assets anyway. There's always the remote possibility that she may need 'care' in later life and this is what many people DON'T seem to want to spend their assets on!

I think we're pretty fortunate. We're not rich but a long way off being poor, have some assets but not too many, none of our descendants needs anything at all from us - they're all doing very nicely, thank you! (With the possible exception of one....)

We do spend money, but not 'spending just for the sake of getting rid of it'. However, it's most unlikely that we will amass an amount to the level of IHT, and I think that's a happy state to be in.

elliebean_2

Tiggs wrote:

Not as simple as that though...whats the qualification you would want to see for will writing? a Law degree? is that better than someone who provides more wills (and willw riting advice) than most solicitors have had hot dinners?

I have passed too many clients to solicitors who did not grasp the basics....its the reason i now offer a will writing service alongside my IFA practice. I have even written Wills for solicitors who werent clued up on the IHT side of things!

I couldn't agree more. My husband and I have a will writing/estate planning practice and we've seen Wills written by solicitors which are very poor and in a couple of instances would not even do what the client wanted! Unlike many solicitors we specialise in this particular aspect of the Law and deal with will writing, inheritance tax planning etc. day in day out.

As with most professions there are poor and downright unscrupulous will writers out there who give the rest a bad name. There are also many competent, professional ones who provide an excellent service.

klondyke

elliebean wrote:

I couldn't agree more. My husband and I have a will writing/estate planning practice and we've seen Wills written by solicitors which are very poor and in a couple of instances would not even do what the client wanted! Unlike many solicitors we specialise in this particular aspect of the Law and deal with will writing, inheritance tax planning etc. day in day out.

As with most professions there are poor and downright unscrupulous will writers out there who give the rest a bad name. There are also many competent, professional ones who provide an excellent service.

I also agree with you despite my earlier post! Trouble is, there are more 'poor and unscrupulous will writers out there' than maybe the good ones know about! Despite being on the Telephone Preference Service, I get many cold calls with people saying 'I understand you don't have a will' and making out I have told them this in some survey or other - I guess this is a way round TPS, pretending there is an existing contact. Normally, I don't give much time to cold callers, but occasionally I will ask them questions about wills, as one should if anyone: IFA, solicitor, estate planner or whatever wants me to pay good money for them to wite one. I have never yet spoken to one who knows enough to give me any confidence whatsoever! My husband, his brother and cousins all benefitted a few years ago from the rules of 'partial intestacy' (yippee, not a fortune, but useful, and I don't think his aunt would have minded in view of the fact that the original beneficiaries had died). But if a will writer doesn't understand even the partial intestacy pitfall and the few words to put in the will to avoid it. It did upset the remaining beneficiaries who thought they could take the lot and had started to do so ........but the little words weren't there! And there are also lots of other little anomalies which can happen - as a good will writer will know!

As to a qualification, I agree it's not that simple, but some of these people sound as thought they don't even have GCSE English. In fact, as an IFA, I would have thought Tiggs well qualified, though it probably doesn't need that level of qualification. (Can't say I trust all IFAs either, but one who writes lucidly on this site is likely to be an exception!)

Tiggs_2

prob with the cold callers is that some will firms use lead generation companies to make the appointments - those girls doing the calling dont know about wills - they are just lead makers. Although if you are TPS reg i would report every one of them.

klondyke

Tiggs wrote:

prob with the cold callers is that some will firms use lead generation companies to make the appointments - those girls doing the calling dont know about wills - they are just lead makers. Although if you are TPS reg i would report every one of them.

I would, but they are never very clear as to who they are - apart from being will writers!

Jake'sGran

Tiggs wrote:

How well do you know her x husband she hasnt even met yet?

Sorry for any misunderstanding. My daughter has been married over 25 years.
We are a small family, me,my OH, two children and two grandchildren. My son-in-law has been learning about investing from me and, at last, has learned how to budget better etc. I got a bit fed up with him not long ago quizzing me all the time about how he can ensure a better income in retirement. In the end I said "you spend less and save more". He seemed a bit shocked by this advice but has now taken it on board and has started a SIPP with a respected broker. Between them they have an excellent income and want for nothing. My daughter is really in to retail therapy. I don't really like the idea of these four people getting the money I've saved but cannot see any alternative except maybe the RSPB. But, you never know, I might live another ten years

Tiggs_2

Jake'sGran wrote:

I don't really like the idea of these four people getting the money I've saved but cannot see any alternative except maybe the RSPB. But, you never know, I might live another ten years

why care, you'll be dead. unless you dislike them why worry about them having your cash when your gone???

home_alone

Having read through all the postings so far on this subject I would say to those that are appalled by parents wishing to give as much money as they can to their children, if left with 2 choices Gordon Brown or children then the kids win everytime, if you wish to give all your hard earned cash to the treasurary, good for you, but please do not criticize others if they have other ideas. Stupid tax anyway the mega rich, which this tax was originally aimed at, have the means and expert knowledge to avoid this tax (and others) so the onus falls on the likes of Mr Average Earner to stock up Gordons Bank.

I was not going to say this but here goes I am 63 so perhaps another 20 years wife is same age, at the moment I stand to pay Gordon about £400K in IHT so within the next weeks I will give each of my kids £100K to be put into enhancing their property then within the next 7 to 10 years I will downsize my house to keep within the limits of IHT the kids, you quessed it, get the rest, less reasonable living amount for myself and wife, I also have a 5 week old grandson who is beautiful who I will make beautiful and as rich as I can. Sorry to all that are appalled but we love our kids to bits they are not spoilt just good kids.

gary

klondyke

home_alone wrote:

Having read through all the postings so far on this subject I would say to those that are appalled by parents wishing to give as much money as they can to their children, if left with 2 choices Gordon Brown or children then the kids win everytime, if you wish to give all your hard earned cash to the treasurary, good for you, but please do not criticize others if they have other ideas. Stupid tax anyway the mega rich, which this tax was originally aimed at, have the means and expert knowledge to avoid this tax (and others) so the onus falls on the likes of Mr Average Earner to stock up Gordons Bank.

I was not going to say this but here goes I am 63 so perhaps another 20 years wife is same age, at the moment I stand to pay Gordon about £400K in IHT so within the next weeks I will give each of my kids £100K to be put into enhancing their property then within the next 7 to 10 years I will downsize my house to keep within the limits of IHT the kids, you quessed it, get the rest, less reasonable living amount for myself and wife, I also have a 5 week old grandson who is beautiful who I will make beautiful and as rich as I can. Sorry to all that are appalled but we love our kids to bits they are not spoilt just good kids.

gary

Go for it!! But don't want to put the mockers on it - but take care to provide for the eventuality that you might not live 20 years, or even 7, and/or might need care - with the possible result of benefitting Gordon's Bank.

I'm 62, mr 72, so all stats would suggest that he would fall of his perch first, but now I have cancer, the picture could well be different - and could go the other way again if my scan on 14th August says chemo has cleared it. (Keep your fingers crossed for me please, folks!)

We have 2 adult children, both financially independent, though one much better off than other, though now she has produced our 10 month old granddaughter, the budget may be tighter. We helped the younger one with deposit on house, as an interest free loan - it could have been a gift, but she insists on paying back. Half will be written off with each of our deaths as the assets would cover it and leave enough and more to give her sister the same amount. Trouble is, although sister is very comfortably off, we don't want to be unfair in leaving them unequal amounts in the long term. Good thing they are great friends! It is possi ble that they will want to vary the will to give younger sister more, especially as I know elder one is also benefitting from her inlaws' generosity. They have the same idea about getting rid of surplus money!

I would really like to write off the loan now and hope I last 7 years, but she won't hear of it, partly because she really does want to pay it and partly because she doesn't want to accept that I might not be around in 7 years!

I just wish IHT wasn't so silly.

home_alone

I wish you all the best Klondyke and hope you are out celebrating on Aug 14 and thereafter.

gary