How the 'bank of mum and dad' shells out £43,000 AFTER a child has reached 18

borntobefree

Parents might as well give their kids money for useful things in adulthood. Leaving money to kids after your dead just means the tax man fills his boots with inheritance tax.;)

FTBFun

borntobefree wrote: »

Parents might as well give their kids money for useful things in adulthood. Leaving money to kids after your dead just means the tax man fills his boots with inheritance tax.;)

Indeed. This is pretty much the cornerstone of basic inheritance tax planning.

I was asked by my Dad what ideas I had for that. Don't think he was much impressed by "give me and my brother some money".

PasturesNew

JonnyBravo wrote: »

Overall, I've had more than the £43k. Someone has to keep the average up eh?

So you've had my part! It's time you handed it over then.

I think MSE attracts a wealthier bunch of people than I've ever known in real life, on average. I don't meet people as well off as "you guys" in the real world.

PasturesNew

FTBFun wrote: »

Indeed. This is pretty much the cornerstone of basic inheritance tax planning.

I was asked by my Dad what ideas I had for that. Don't think he was much impressed by "give me and my brother some money".

Inheritance tax planning is something only very rich people do.

I've never known anybody talk of it, or have to pay it.

I certainly won't be paying any, nor would my 'estate' come anywhere near the threshold if I were to keel over right now.

PasturesNew

chewmylegoff wrote: »

i don't really see what the problem with all this is, or why it is a bad thing.

It's not a 'problem'.

I simply fell over at the sheer scale of the figure. £43,000... you'd have to be earning a LOT of money to be able to pay for your own home/bills/commuting/food AND on top of that have a "spare" £43,000 lying around!

I'm fairly confident that £43,000 is more than the entire lifetime's "spare" that my parents could lay their hands on, combined, in an absolute emergency. If I were being held for ransom, I'd guess they might be able to scrape £20k together by completely wiping themselves out forever.

iB1

University: Parents paid my rent. I was sponsored throughout uni from a company I worked for in my year out, it was the last year before tuition fees, AND I got a bit of a grant because my parents earned under a certain amount. Lucky me

First car: Parents gave me half the money, I took out a loan for the other half

Wedding: Not married. In fact I'm single. My Mum has reserved some money to buy a hat however

First House: Like Cleaver, I was prepared to plough in virtually all my savings for a deposit (£20,000). My Mum said to me as I'd been so prudent over the years, she wanted to help and matched what I put in.

So overall:

4 years at uni * ~£150 a month - £7200
Car - £4000
Deposit for house: £20,000

Gives a grand total of £31,200

Doom_and_Gloom

University: I haven't gone yet but if I do (and I do plan on doing so in the future) I will finance it myself.
Weddings: My partner and I are saving to pay for our own wedding.
Car: Don't have one and can't drive. The only reason my partner has to learn to drive is to make it easier on us travel wise as I am disabled (so the car would be because of me) - we'd forgo the mobility DLA for the car.
Deposit for house: We have only rented so far but my parents didn't help with that. Hopefully one day we will save a deposit so we can get a mortgage but we shall see.

When I have borrowed money from my parents I have always paid it back as well.

I don't like relying on my parents for anything unlike my sister who's stats look like this:

University: She went and they helped her out with rent while she did even though her partner worked full time and she had a part time job - she thanked them by dropping out :mad:.
Weddings: My parents paid for all of her wedding.
Car: They bought her one within the last year! She is supposed to be paying for it but hasn't paid them a penny.
Deposit for house: My parents refuse to lend out or give her any more money :rotfl:.

It's funny how people can have the exact same upbringing and turn out so differently. My sister doesn't know the value of money at all yet some how I do.
Our parents were in a good position when we were growig up and were able to set up savings accounts for both my sister and me. She spent hers years ago yet I still have mine.

FTBFun

PasturesNew wrote: »

Inheritance tax planning is something only very rich people do.

I've never known anybody talk of it, or have to pay it.

I certainly won't be paying any, nor would my 'estate' come anywhere near the threshold if I were to keel over right now.

It depends on your definition of very rich.

I would say that a joint couple having more than £650,000 of assets (i.e. more than the joint nil rate band for married couples/partners)isn't particulary uncommon, especially because of the way house prices have gone in recent years.

SingleSue

PasturesNew wrote: »

What a load of old assumptive toss.

Did you have this spent on you?
Will be you spending it on your kids?
Really....?

http://www.dailymail.co.uk/news/article-1366521/How-bank-mum-dad-shells-43-000-AFTER-child-reached-18.html



For me:
University: Never went
Weddings: Never had one
Car: I bought that
Deposit for house: I saved that

What a load of old tripe.


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For me:

University - Never went (doing OU degree currently)
Wedding - Had one but did it on a budget with costs mainly being borne by ourselves
Car - Until this last car, we always purchased our cars without help, my current car my parents loaned me the money and I paid them back weekly.
Deposit for house - We did that ourselves.

For my sister:

University - Never went
Wedding - Another on the cheap
Car - Always purchased their own (she is married)
Deposit for house - Never even had a mortgage let alone wanting a deposit.

For my brother:

University - Never went (doing OU currently though)
Wedding - Done even cheaper x 2!
Car - Always sorted his own out
Deposit - Same as sister.

p00hsticks

Sagz wrote: »

Luxury! I used to dream of parents like them :rotfl:

Tell that to young folks today, and they won't believe you.....