IHT - part of the problem. What about carousel fraud?

elliebean_2

Pam17 wrote:

The only way it seems we can do anything about it is to employ someone like yourself and as I said above you won't tell me how much it will cost me.

I've sent you a PM Pam17

System

Thanks Elliebean for the PM and Edinvestor for your post.

I now have a more informed idea of what is involved in IHT planning and will be doing my utmost over the coming months (with a bit of budgeting) to ensure we protect ourselves for our children's future.

Our joint estate currently would not be in the £570,000 range but, if I understand correctly, if we don't sort out our wills more carefully with IHT in mind then we might squander the use of the nil rate band in the event of the first of us to die.

Thanks for the help

elliebean_2

EdInvestor wrote:

IHT doesn't kick in for a couple under 570k - going up to c.600k next year.

IHT kicks in for most couples at £285k. Most couples leave everything they have to each other on first death with no IHT payable because of spousal exemption. This results in the value of their assets jumping up significantly - what 2 previously owned between them is now owned by 1. The problem then comes when the second person dies. If everything they own is over and above £285k it's taxable at 40%.

Because each person has their own IHT-free allowance of currently £285k, that is wasted with a couple if they leave everything to their spouse. Hence the idea of owning property as tenants in common and leaving the value of the nil rate band (£285k) to a trust.

So, Pam17 you really need to be looking at whether your joint estate is over £285k to see whether you'll be liable for IHT on second death.

Tiggs_2

elliebean wrote:

IHT kicks in for most couples at £285k.

Only those that moan instead of plan. Even the tabloid papers "basic guide to IHT" will mention Will planning. There is no excuse for anyone that is motivated enough about IHT to moan about it to not have issues like this dealth with.....the information is easily obtained.

Tiggs_2

A_Nice_Englishman wrote:

I thought these forums were for the mutual exchange of advice.

I was asked this:

"can you tell me exactly what I have to do to ensure, should anything happen to me and my dh, my kids don't have to pay IHT? "

I do not give financial advice on these forums, and nor should any other regulated adviser. I post generic information which may assist people....i happily do that for free. The sort of advice that the poster was after (had they actually had an IHT issue - which they dont) would cost them and they arent going to find it on a freebie forum.

jem16

Tiggs wrote:

Only those that moan instead of plan. Even the tabloid papers "basic guide to IHT" will mention Will planning. There is no excuse for anyone that is motivated enough about IHT to moan about it to not have issues like this dealth with.....the information is easily obtained.

My late husband and I thought we had planned for our children - IHT never entered our heads. We drew up wills with a solicitor leaving everything to each other and then to our children.

Then my husband died in an accident aged only 48 four years ago. Everything passed smoothly to me - so far so good. However now I find IHT is an issue through finding this site.

I don't regard myself as "well-off" but my husband's pension scheme payout plus the value of my house puts me over the IHT threshold.

Tiggs_2

your situation is a reflexion of poor advice (assuming you sought it?)

had you seen me prior to your husbands passing you would have been well aware of the potential issue and dealt with it.

the moral of that story is that EVERYONE should take time to review their finacial situation with a good quality adviser.

jem16

Tiggs wrote:

your situation is a reflexion of poor advice (assuming you sought it?)

We sought the advice of a solicitor in drawing up a will. We didn't know about possible IHT issues and the solicitor never mentioned them either. Although I expect we saw the wrong person.

had you seen me prior to your husbands passing you would have been well aware of the potential issue and dealt with it.

Probably would have but too late now :sad:

the moral of that story is that EVERYONE should take time to review their finacial situation with a good quality adviser.

I've been trying to persuade my parents to do something for the last 2 years - they keep putting it off.

hardpressed

Where I think IT is unfair is that a modest 3 bed house in parts of the country can be worth well over the IT limit, the same house elsewhere can be well below the limit, that doesn't seem fair to me.

Tiggs_2

jem16 wrote:

I've been trying to persuade my parents to do something for the last 2 years - they keep putting it off.

its unfortunate.....you saw one adviser who didnt bother to tell you* and your folks keep putting it off - sums up 90% of people and why IHT is a big deal.

if you got good advice and your parents got their heads out of the sands IHT would be a non-issue for you.......if only the world were that simple!

* should add - a solicitors clients are YOU......and YOU dont pay IHT on your own assets, your kids do - and they arent his clients. Its VERY common for solicitors to ignore IHT on the basis that the kids arent their concern - as an IHT adviser your children are as much my concern as you are.