Inter-relationship between IHT and LA Care

mark55man

is a f3ckless relative one who can't give a f3ck

bigadaj

Spivved1987 wrote: »

Yes, I know all the moral arguments. The truth remains however that the inheritance in mid-life is a truly life-changing event (if not for you then certainly for the grandchildren), and likely to become even more so as incomes stagnate and income-inequality grows in this country. To have this depending on luck ie whether one's parents need residential care or not seems to me rather iniquitous.

Well I don't think it would cost that much to pop over to dignitas in inheritance terms.

jamesd

Spivved1987 wrote: »

The truth remains however that the inheritance in mid-life is a truly life-changing event (if not for you then certainly for the grandchildren).

For the amount to be large enough to be really life-changing, the value would also be sufficient to provide for good care without undue depletion of assets. A few tens of thousands can't really be life-changing very easily, while if it gets to hundreds of thousands or more I've already described how that can pay for care without undue depletion.

Instead, what happens and will continue to happen is that for estates up to a hundred or two hundred thousand, perhaps below the size that can pay for the ongoing care without depletion, just vanish, while the larger ones survive.

The cap is just going to preserver more of the wealth of those who would already probably have been able to cope, without being low enough to help those who already lose just about all inheritance anyway. Those with nice investment pots - like those who prepare for retirement income with personal pensions in drawdown - would probably have beneficiaries who do quite well.

Spivved1987 wrote: »

To have this depending on luck ie whether one's parents need residential care or not seems to me rather iniquitous.

It's iniquitous if some deliberately contrive to make the rest of us pay when they could pay for themselves. It's definitely unfair that some of us will need care and others won't but that's something you should discuss with your preferred deities, if any. Though of course some care needs are simply due to natural ageing, not illness.