Advice For My Dad Please

EdInvestor

Dad can also give away as much as he likes from income ( as opposed to capital). If he invested the money he would net around 6,400 a year after tax, all of which he could give away - or spend - without the capital being affected, should he need it in future.

Tiggs_2

Jake'sGran wrote:

Yes, he can do that but if does not live for another seven years you and your sister will need to pay tax on the money you have received as already mentioned above.

Incorrect.

Tiggs_2

Jake'sGran wrote:

Is the reason you wouldn't give any of the value of your house to your children because you believe they should look after themselves financially?

no, its becausei dont want to loose my house to people my kids owe money to/x wives etc

Jake'sGran

Tiggs wrote:

Incorrect.

Put me right then Tiggs. You must admit, this inheritance tax thing does take some comprehending. Do you work in this field?

margaretclare

I agree with Tiggs. Dad should enjoy life a little instead of worrying too much about what's going to happen when he's no longer around. When someone very close to you dies, you tend to realise how short life is and how little time there is for doing maybe the things you'd always wanted to do. Not necessarily a world cruise - there are other things.

I've known some very sad elderly people who'd 'always wanted to' do something or other but it was always too much effort to actually find out details, visit a travel agent, pick up the phone. One lady I knew had always wanted to visit her mother's grave in Ireland. I offered to arrange it all for her - not far north of Dublin so it would have been Ryanair from Stansted to Dublin - go with her, arrange the wheelchairs etc, but there were always reasons why not. My DH's father always wanted to visit Israel, had the money to do it, but there were always reasons why he couldn't. In the end it became too late in both those instances.

There is always the possibility that Dad may remarry - don't tell me this is unlikely. I remarried aged 66 10 years after my first husband's death, a man I know of remarried a year after his wife's death, and he's about 5 years older than me.

Margaret

SMARTY29A_2

i know what you are saying, you never think about death but when someone who you usually see every day dies suddenly, you see everything ina different light.

Therefore i may take up my dads offer on him paying for a holiday for us all, not that i need or ever have needed any handouts by any means, but he says we have all been through a hard time so we will see.

and yes right enough he could re-marry.

Tiggs_2

Jake'sGran wrote:

Put me right then Tiggs. You must admit, this inheritance tax thing does take some comprehending. Do you work in this field?

yes i do, and yes it is complex...but so is rocket science which is why i dont comment on that.

on death, gifts in the previous 7 years...if covered by the nil rate band are....COVERED BY THE NIL RATE BAND....= zero tax on those gifts.

now the rest of the estae has more tax to pay as some NRB has been used up but thats another issue. bottom line, its VERY rare for people who got gifts to have to pay tax on them unless those gifts were large.

margaretclare

SMARTY29A wrote:

i know what you are saying, you never think about death but when someone who you usually see every day dies suddenly, you see everything in a different light.

You sure do. And it doesn't even have to be someone in your parents' or grandparents' generation. My younger daughter died very suddenly aged 39 at the end of 2002.

We are not planning to leave anyone a darned thing. We're enjoying life while we're here. Just come back from a week's holiday in Yorkshire, planning to be away over Christmas on a Rhine cruise, and have been invited to a get-together of friends next July at Niagara Falls.

Therefore i may take up my dad's offer on him paying for a holiday for us all, not that i need or ever have needed any handouts by any means, but he says we have all been through a hard time so we will see.

Your Dad would enjoy it and you'd enjoy it. Much better than agonising over what's to be left behind, how much tax will be due on it etc etc. Have a great time.

and yes right enough he could re-marry.

You never realise it until it happens, but when you're used to living in a partnership. sharing joys and sorrows, sharing decision-making, enjoying discussions, conversations and activities together - it can be awfully lonely and desolate on your own.

Good luck!

Margaret

Jake'sGran

What you say is true Margaret but it assumes that the person with the money is fit and able to go on all these trips. I am not in that position. Went for the big checkup with the cardiologist today and he is now talking about the possibility of further surgery. Neither of us fancies a cruise and don't like long flights. Still, might be off to Majorca soon and somewhere else sunny in the winter. Meanwhile, will have some further thoughts about IHT and my will. Good luck to you and you new husband.