Advantages of "Tenants in Common"

moonrakerz

"people do have to be pretty strong-willed not to be swept away by the `all-knowing, fee-earning` IFAs and solicitors"

Dear oh dear kittie, you do seem to have it in for some professions don't you ? (perhaps because they live in "big houses"). What's wrong with earning a fee ?
I can only presume when you - "worked very hard all our lives", you were not paid for it.
"All knowing" - good ! when I employ a plumber, a carpet fitter or a solicitor I want him to know what he's doing and I will pay him a reasonable fee for his expertise.
As for your comment: "there aren`t that many people who can think for themselves", I think that is extremely ungenerous, a lot of people use this web site to save money and to get advice and information. If I don't agree with what someone says in a post I wouldn't dream of accusing them of not being able to think for themselves. This thread was started by someone asking for advice on a subject which I happen to know a little about because I have already gone down that route. I offered some thoughts based on my experience. For my trouble, I, and presumably the others who have contributed, are then apparently accused of being weak-willed and unable of thought.

I would have thought that holding a rational discussion about a subject is far more strong willed and thinking than sticking to a dogmatic one-sided view of the discussion and making sarcastic comments about people who hold differents views than you.

You are perfectly correct, it is your money, your house to do with as you wish. I am doing exactly what you said you can do - downsize. The My wife and are then going to have a good retirement - hopefully spending the last pound the day before we both drop dead.

[Deleted User]

The reason that many people of a `mature` age want to become tenants in common is to avoid IHT. The reason that many of them are above the IHT threshold is because they are of the generation who were able to buy houses at very low prices eg our first house was just £4500 for a detached 4 bedroomed on a large plot. Our last house was worth many times that, but on our the way to this `wealth`, many of the younger generation have been forced out of the home-owning, pension-building bracket. In addition they are now expected to support the baby-boomers, through retirement, as they (the baby boomers) duck and dive rather than put some of this `wealth` back into society and particularly into affordable homes for the `not so lucky` younger generation

moonrakerz the public at large have been brainwashed into thinking that they cannot make certain judgments for themselves. Partners need tenants in common so that they can leave the property to each other. Married couples choose tenants in common as a route to ring fence £275000 from IHT. If this is the chosen route then a discretionary will trust should also be set up
http://www.stephens-scown.co.uk/newslDeleted_User/newsarticle3.asp

There are other ways to avoid IHT whilst retaining flexibility of assets. Personally we will enjoy our retirement, our children will get an inheritance and there will likely be some left to put back into society. Conscience is clear!!

moonrakerz

Kittie, I totally agree with your first paragraph - my houses have risen nearly 40 fold in value from my first to my present one, and that wasn't "playing the market", just normal moving around. I am just making sure that I can get my kids started on this crazy house owning ladder by passing on as much of my esate to them as possible. Starting now - hopefully I will last for another 7 years.
I honestly beleive that much of the money I have paid in taxes is wasted by Government (central and local); as a result I would like to retain control over as much as possible of it to be spent as I think fit, by me or the kids.

I don't think the public have been "brainwashed", people need information to make their own decisions. If that involves going to an "expert" and paying for his services - so be it. You mentioned earlier "getting trapped in a trust": you are far more likely to get trapped in a trust if you try a DIY approach - I dare say solicitors make far more money out of sorting out badly written DIY Wills and Trusts than they do from writing a "proper" one in the first place.

Finally, if you are going to "save £90,000 in IFA fees" by managing your own SIPP you must have one helluva pension pot !

Good luck, we're hogging the thread, let someone else get a word in !