At almost 80....

atush

If you have contact with her son, your grandson, then he can let you see them and your awful daughter should be none the wiser.

In any case, great that you are helping them out despite her.

margaretclare

atush wrote: »

If you have contact with her son, your grandson, then he can let you see them and your awful daughter should be none the wiser.

In any case, great that you are helping them out despite her.

It's my GD's boy-friend. Unfortunately she's a very dominant character and has influenced many of the rest of the family. It's a long sad story, can't go into it all here.

The only one I'm really friends with, apart from younger GD's BF, is elder GD. I've been helping her by paying for driving-lessons. Either that or, periodically, she had a shortfall in money - didn't always get paid for contracts etc - and it was phone ringing and 'Graaaaan.....'

I could be very proud of their mum for what she has achieved, is at present teaching English in Cairo and some of them are living in her house. I could be heartbroken. Some people would be. But I'm determined not to be. In the words of the song 'I will survive!'

zygurat789

dunstonh wrote: »

Although you will pay tax to get it out of the pension to put it into the ISA. It will form part of your estate (unlike the pension).



Death is probably the main thing and who inherits the pension and what they would do with it.

Here it says that ISAs will form part of the estate for IHT
https://www.gov.uk/individual-savings-accounts/if-you-move-abroad-or-die

Here it says Isas will not form part of the estate
http://www.moneysavingexpert.com/news/banking/2014/12/surviving-spouse-to-inherit-tax-benefits-of-deceased-partners-isa-autumn-statement-2014?_ga=1.104215808.1838064378.1430380142

xylophone

https://www.youinvest.co.uk/isa/isa-changes-2015

System

zygurat789 wrote: »

Here it says Isas will not form part of the estate
http://www.moneysavingexpert.com/new...378.1430380142

"The ISA cash will not count towards the value of the deceased person's estate (which is the value of everything they own, including property and cash in the bank) to calculate inheritance tax."

That is such an extraordinary statement to make it is amazing that no one challenged it at the time.
There are ISA millionaires. It is inconceivable that the government really intended to create such a whopping IHT loophole for them.

bowlhead99

There is no loophole. As I implied in the post above, MSE have worded it badly ; the only reason MSE are saying the ISA is not inside the estate is because they are talking about the specific case of someone inheriting ISA assets from their late spouse. Anything you inherit from your spouse is outside inheritance tax.

In other words, bunging something into an ISA wrapper is quite handy as your spouse will get to inherit your ISA wrapper as well as the assets that they inherit IHT free. If someone other than the spouse inherits the ISA assets they will not be outside the estate, and will have to come out of the ISA wrapper, though the spouse can still inherit the wrapper itself in the form of an additional allowance.

margaretclare

Inheritance tax is absolutely irrelevant for DH and me. We are nowhere near it, shall never be anywhere near it.

At present I'm looking into something called UFPLS. 25% of this is tax-free and the rest taxed as income. In theory, I could take the 25% tax-free and transfer the remainder into my S&S ISA investments. The same investments that are in the SIPP.

I've asked for some paperwork and I await with interest. It's really all about simplifying things, and also, the same investments might grow better under one umbrella than under two.

I'm just in the process of chucking out a load of papers that go back, in some cases, to before my marriage in 2002 - all the tax papers, you name it. I think what the tax people have done with me is to set all my tax allowances against the 3 small annuities so that they're all tax-free, but to plonk Basic Rate on to my H-L annual drawdown so I pay 20% on that. Another reason why it's hardly worth bothering with.

I think, also, if I die first things should be simple for DH. All I ask is snowdrops planted on my grave and his grave beside mine.

jamesd

margaretclare wrote: »

No, I can't do that, kidmugsy - wrong age, much too late.

It's not that you're too old for class 3A NI top-ups of the state pension, it's that you're still too young.

At age 80 you get 9.56% of the purchase price as ongoing tax-linked and inheritable income. At 81 it's 10.12%. But both of those are less than the 10.4% inflation-linked and mostly inheritable that a person can get from deferring the state pension if they haven't yet done that since claiming it.

Unless your health is good you're now getting to the point where the break even time is starting to look more challenging so deferring isn't as good a deal as it once was for that reason. Still beats Class 3A, though, and probably what you could get from an annuity.

If you just want taxable income you can do things like P2P and get over 10%. Sadly not yet available in ISA form to make it tax free but its' interest income and it appears likely that it'll be within the limit for that to be tax free anyway.

margaretclare

Thanks for this, jamesd - I'll at least look into it. My health is pretty good considering. No one gets to 80 without some darned thing. Most of what I've got is not life-limiting.

PS: Er, no, no way. I couldn't justify paying £13,600 for an extra £25 a week! I'd rather have it in the S&S ISA where I can see it growing. An extra £25 a week would be pretty meaningless. I don't spend all my income as it is.

kidmugsy

Teaandscones wrote: »

At 80 my g grandmother refused to buy a new television on the grounds that she was saving for her old age. She wasn't that daft, her son paid for the tele and she lived another 20 years.

In less than thirty years we've gone from my mother buying us a telly because she thought it was absurd not to have a colour TV, to the younger generation buying us a telly because they thought an old-shape, CRT telly was hopeless.

By golly the standard of the programmes has declined over those years.