Inheritance Tax Article MoneySavingExpert.com Discussion

Jake'sGran

You are right Tiggs. But, seriously, I do love my family very much and my high spending daughter is very kind and loving. The grandchildren have bank accounts set up by me as I was determined they would start to learn about this at an early age. They were bored stiff by it all at the beginning but now have cash cards with which they can withdraw £20 max. One spends more than the other who has accumulated £500. Its interesting and funny to observe their money habits. £3000 is being put away each year but they know nothing about it. Hopefully it will pay for first cars and university, if I live long enough. My son has learnt some money lessons the hard way but is now doing OK and I hope his inheritance will give him an easier retirement.
Love is everything.

Tiggs_2

klondyke wrote:

I just wish IHT wasn't so silly.

IHT isnt silly.....your kids are!

A post further up stated that the wealthy dodge this tax..........its nonsense, the wealthy pay HUGE amounts of IHT.

IHT planning has NOTHING to do with wealth and EVERYTHING to do with common sense.

I'll tell you who pays less IHT.....people with kids sensible enough to realise we all die at some point and when you are old its prob not far off. Its the tax man or the family, it aint pretty and yes....it involves dead folk.....but if you can get a grip on the basics IHT is simple to improve upon.

The problem is most people do as described above.......a financially crazy situation where kid wants to PAY money to parent so they can then inherit it later less 40%......and parent calls IHT silly!

klondyke

Tiggs wrote:

IHT isnt silly.....your kids are!

.a financially crazy situation where kid wants to PAY money to parent so they can then inherit it later less 40%......and parent calls IHT silly!

No., she doesn't want to pay in order to inherit later less 40% - she wants to pay because she wants to show her independence, wants us to spend it, go on criuises, holidays etc (but travel insurance not easy now, as I had to make a cancellation claim on last booked trip and have surgery instead. What fun!)

I admire her for that spirit - but have told her (sort of) she's silly if she's struggling to pay it when we really don't need it. Though she says she's not struggling - and in comparison with the harrowing tales on the Debt Free Wannabe thread, she isn't struggling and certainly feels better, as does her partner, moving to Somerset from London. Income lower, but so are prices there.

Honestly, neither of them really give a toss about inheriting, which has made me think about leaving some to charities of their choice - now THAT would avoid silly IHT!!

Tiggs_2

If your kids dont care about the money then there is no issue....let the gov take a chunk. You'll be dead and the kids arent fussed.

People cant have this both ways, either you want to tackle the tax and put your sensible heads on to do so.......or you worry more about showing independence and forcing your folks to go on cruises they dont want and dont need - at a cost to your future wealth.

I have far greater wealth than my parents and earn every year what it took my day 7 years to earn - yet i take every penny they offer me when they occasional gift some of their estate away (as they do from time to time as various investments mature/property is downsized, etc)

I have no idea if they feel that i am "lacking independance" because i take those gifts - and i have no interest in shoehorning them into spending it first (they are grown up enough to figure out if they want to spend it themselves)

I love them.....and i love money, you dont need to give up your interest in one to keep the other happy!

home_alone

Tiggs wrote:

A post further up stated that the wealthy dodge this tax..........its nonsense, the wealthy pay HUGE amounts of IHT.

IHT planning has NOTHING to do with wealth and EVERYTHING to do with common sense.

Its only the stupid rich that pay lots of IHT the clever ones have already moved their cash out of the country usually buying villas for their kids. Is there such a thing as an IHT list to see who has paid what amount, I have seen selected local lists but these were long ago in local newspapers, just interested to see what the Alan Sugars/Richard Bransons bracket pay in comparison to Joe Bloggs?

Tiggs_2

home_alone wrote:

Its only the stupid rich that pay lots of IHT the clever ones have already moved their cash out of the country usually buying villas for their kids.

clever?????

point 1 - A villa ANYWHERE it the world is liable for IHT if you are due to pay it in the UK so whats the issue with "out of the country"?

point 2 - Giving ANYTHING outright to your kids is a gift and goes through the same 7 year period. Doesnt matter if its cash passed over in Devon or a willa passed over in Spain. So how "clever" is it to do 7 year gift planning? hardly rocket science.


The rich pay huge amounts of IHT.....because they are normally sensible they pay less than they would if they didnt plan for it - but dont think that when Sugar dies he is going to pay less tax than someone "normal"

home_alone

Tiggs wrote:

clever?????

point 1 - A villa ANYWHERE it the world is liable for IHT if you are due to pay it in the UK so whats the issue with "out of the country"?

point 2 - Giving ANYTHING outright to your kids is a gift and goes through the same 7 year period. Doesnt matter if its cash passed over in Devon or a willa passed over in Spain. So how "clever" is it to do 7 year gift planning? hardly rocket science.


The rich pay huge amounts of IHT.....because they are normally sensible they pay less than they would if they didnt plan for it - but dont think that when Sugar dies he is going to pay less tax than someone "normal"

You are talking about people that have accountants by the score and will find any loophole there is. I know a few that have bought properties abroad put them in their kids names,. I did not say it was within the 7 year period.
Alan Sugar is not someone normal he is a smart cookie who will pay 40% off IHT of the money left in his account, after sensible planning.

To put my own views I do believe that power and wealth corrupts and no one in that position will pay a penny more than they can get away with, I know its a dim view of society as a hole but more or less a correct one (my view).

gary

Tiggs_2

home_alone wrote:

You are talking about people that have accountants by the score and will find any loophole there is. I know a few that have bought properties abroad put them in their kids names,. I did not say it was within the 7 year period.
Alan Sugar is not someone normal he is a smart cookie who will pay 40% off IHT of the money left in his account, after sensible planning.

To put my own views I do believe that power and wealth corrupts and no one in that position will pay a penny more than they can get away with, I know its a dim view of society as a hole but more or less a correct one (my view).

gary

I cant see your point??? I am saying ANYONE can plan for IHT...but most dont.

You know people that bought a villa and gave it away? so? anyone can give stuff away, hardly the reserve of the rich and famous.

and why would anyone pay more than they can get away with? the avarage estate value of my clients is £1.5m (lowest are around 600k - highest 5m +) These are not "super wealthy" yet BECAUSE they plan none will pay more than they need.

its NOT about wealth.....its about planning (and its nothing to do with villas!)

cheerfulcat

home_alone wrote:

To put my own views I do believe that power and wealth corrupts and no one in that position will pay a penny more than they can get away with

Ah, yes, and the average Joe is so very keen to pay all the tax he possibly can?

I do think that you have the wrong end of the stick, btw; as Tiggs says, anyone can plan for IHT. It's not that expensive, given the tax savings involved, and it's not that complicated.

klondyke

Tiggs wrote:

If your kids dont care about the money then there is no issue....let the gov take a chunk. You'll be dead and the kids arent fussed.!

I am more concerned than the kids about giving the government a chunk - because we have a totally irresponsble government at the moment, who like to spend money on bombing other countries for no good reason - so looks like charity is the answer, but many charitie are also pretty wasteful!