Parents have asked for some help so where better than to start here

JoeK_3

Mike, Peps and ISA'S cannot be transferred between individuals as they are owned by the individual.

EdInvestor is trying to explain that your parents estate should be equalised. This means that each parent should personally hold around half of the total joint estate.

By all accounts, your parents are prepared to pass their whole estate to you now. If that's the case then you could become the owner of their estate immediately and there would be NO tax to pay at all.

JoeK

mike1976_2

hi joe

thanks again for the responses.

dad will phone our solicitor tomorrow, but this has given us an insight

cheers
mike

EdInvestor

mike1976 wrote: »

one policy is worth £12k on his death, but would pay out £3200 as a lump sum and £700 a year while he is alive and £500 a year to my mum, should he die before my mum.so ballpark, i would assume that he could get a £10k lumpsum now with c.£2000 a year?

Tax free cash lump sums are usually 25% though some company pensions pay more as you can see. You need to check with each one.

he doesnt really need the money, but again doesnt want to pay tax (ok, not a problem unless the house price rockets) or the care fees?

Just as a matter of interest if the parents are retired, don't need their private pensions, have no inheritance money,haven;t done equity release and have very small ISAs, what do they live on?

Do they both have large state pensions?

mike1976_2

hi ed

thanks for the response.

that is a good question.

i dont think they get a state pension due to their circumstances.

my dad often whinges about how he could get handouts had he not be as prudent over the last 30 years.

i'll have a word and get back to you

i know that they dont spend very much beyond utilities, food and council tax.

tanith

I thought everyone qualified for a state pension of differing amounts no matter what their circumstances....

EdInvestor

tanith wrote: »

I thought everyone qualified for a state pension of differing amounts no matter what their circumstances....

No, it depends on your national insurance contributions.

Those who have no entitlement to a state pension and no other means of support can apply for a means-tested benefit called "pension credit" which is based on circumstances.State pensions are not means tested.

seven-day-weekend

[QUOTE=EdInvestor;4614447
State pensions are not means tested.[/QUOTE]

So thta's a good a reason as any to have a State Pension in your own right, even if it isn't actually any more money.

seven-day-weekend

mike1976 wrote: »

hi ed

thanks for the response.

that is a good question.

i dont think they get a state pension due to their circumstances.

my dad often whinges about how he could get handouts had he not be as prudent over the last 30 years.

i'll have a word and get back to you

i know that they dont spend very much beyond utilities, food and council tax.

A State Pension is not a handout, it is something you have paid for for around forty years!

mike1976_2

thanks folks for the replies.

yes indeed they both get a state pension from their contributions over the years. that is what they lives on.

Jake'sGran

A query to EdInvestor please. I'm not sure what you mean when you say in
your No.7 response

"You don't have a problem with IHT so they can give you as much as they like."

Doesn't the rule about £3000 per year still apply here?

Also, JoeK mentioned that Mike could have Power of Attorney if his Mother deteriorates further. Wouldn't his Dad look after her affairs? Why would there need to be a Power of Attorney granted to a son when the parents are still living together and one of them is of sound mind?.