Radical overhaul in savings to benefits ratio just in time

Fella

Good article on this:

http://www.cityam.com/latest-news/allister-heath/stealth-hike-inheritance-tax-not-the-answer-care-crisis

grizzly1911

According to BBC news this lunchtime the £75K cap is only for social care NOT for accommodation or food.

It will end up like NHS dentistry. The individual/family picks up the rump of cost still whilst the government top up some restricted elements of care.

IHT isn't an issue because most people will seek to avoid it anyway. If you get hit by it it will be because of lack of planning.

ruggedtoast

Many of these people will have their pension, a state pension, savings and and hundreds of thousands in housing wealth - yet they still wont have to "sell up" though they wont set foot in their house.

Meanwhile priced out young renters strive and toil to pay the tax to maintain the assets and care of the very people who have priced them out.

:mad:

ukcarper

ruggedtoast wrote: »

Many of these people will have their pension, a state pension, savings and and hundreds of thousands in housing wealth - yet they still wont have to "sell up" though they wont set foot in their house.

Meanwhile priced out young renters strive and toil to pay the tax to maintain the assets and care of the very people who have priced them out.

:mad:

Many or a few

ukcarper

I wonder where the average person is suppose to get that £75k from if not from their house.

ukcarper

grizzly1911 wrote: »

According to BBC news this lunchtime the £75K cap is only for social care NOT for accommodation or food.

It will end up like NHS dentistry. The individual/family picks up the rump of cost still whilst the government top up some restricted elements of care.

IHT isn't an issue because most people will seek to avoid it anyway. If you get hit by it it will be because of lack of planning.

I wonder what % of the average care home fee of £30k a year is social care.

ruggedtoast

It would be better value for the taxpayer to send these people to Butlins in Skegness.

John_Pierpoint

grizzly1911 wrote: »

IHT isn't an issue because most people will seek to avoid it anyway. If you get hit by it it will be because of lack of planning.

Please share with us all the trick of deciding when to die, and carefully giving away, all but £325k. at least seven years before popping the clogs.

[Never mind care home costs of £2,000+ per month and avoidance of gift with reservation rules and deprivation of assets legislation].

Assume a modest home within the M25.

grizzly1911

John_Pierpoint wrote: »

Please share with us all the trick of deciding when to die, and carefully giving away, all but £325k. at least seven years before popping the clogs.

[Never mind care home costs of £2,000+ per month and avoidance of gift with reservation rules and deprivation of assets legislation].

Assume a modest home within the M25.

Depends on how far you want to take it and whether you are content to see assets taken through IHT? Whether you want to leave the best you can to anyone.

You obviously throw in the usual curved balls.

Plan early, start early, take financial, and legal advice. There are products on the market that will help you.

Care home costs are an unknown. you may never need them or get anywhere close to needing them and what you want from them. The proposed cap would provide scope to assign assets to that level in readiness.

As far as M25 question goes downsizing and equity release schemes are available.

John_Pierpoint

Let me try again, to make you reply with something specific:

Let us pretend that I am a divorcee, recent state pensioner with two married children, I have a modest works pension and a net wealth of £500,000 - 66% of which is my house.

IHT bill if dying in the next half a dozen years likely to be £k 500 - 325 = 175 @ 40% = £70,000 bequest to the tax man.

Any suggestions ?