Tax Credits, Housing Benefit and Inheritance - help please?

nonnatus

Emu - You and your family sound terrific and I'm certain you'll enjoy your Dad's inheritance as he would have wanted you to.

Go have that holiday - you deserve it

fed_up_and_stressed

Emu1 wrote: »

It was interesting to learn that Tax Credits are not actually a 'benefit' as such - simply a way of ensuring that hard working families on minimum wage have enough to get by.

Of course they are a benefit! They are a government subsidy for employers paying low wages !

Emu1

I am merely referring back to earlier posts in this thread... As far as I was concerned I would have agreed with you.
I am not on here to debate the rights and wrongs of Tax Credits. I am sorry if I have offended you by raising the original question and being in the unfortunate position of having lost my father.
If some good can come out of this, then that's fantastic.
Thank you to everyone else for your help and kind words.

evenasus

cliffandsue wrote: »

I still feel that it is not right that there are limits with ISA's. You should be allowed to invest as much as you want (and it would solve a long standing problem for me).

The ISA allowance is now £15,240 pa. So £30,480 per couple per year. Plenty enough for most people/couples.
I/we've contributed to ISAs since they were introduced in 1999 and before that TESSAs.
So you can build up ISAs and there is no maximum limit to the amount you can hold. (Used to be £9,000 in TESSAs)

Millie_Millsters

Emu1 wrote: »

You have to understand this has come as a complete shock to me - of course, I'm pleased but also scared to be 'responsible' for such a large amount of money. I'd give it all up in a heartbeat just to hear my Dad's voice...
I will be frugal - it's in my bones to be.

I'm really sorry for your loss and totally understand what you mean.

When I lost my husband I received a large payout from life insurance and death in service benefit but it just seemed like blood money to me. Like yourself, I would have (and still would) given back every penny just to have him here one more day.

It was almost 5 years ago and I haven't really spent any of it. I'm lucky enough not to need it for everyday bills but the freedom from worry of having savings is immense.

cliffandsue

evenasus wrote: »

The ISA allowance is now £15,240 pa. So £30,480 per couple per year. Plenty enough for most people/couples.
I/we've contributed to ISAs since they were introduced in 1999 and before that TESSAs.
So you can build up ISAs and there is no maximum limit to the amount you can hold. (Used to be £9,000 in TESSAs)

That's very interesting info. I didn't know half of that.
So over the next three years if we invest say £30,000 a year we can have £90,000 tax free savings?

ceredigion

cliffandsue wrote: »

That's very interesting info. I didn't know half of that.
So over the next three years if we invest say £30,000 a year we can have £90,000 tax free savings?

Well yes and no. You could actually get as a couple £91,462 in ISAs in the next 21 month's.
Why you would wont to is a different question all together.
Within a cash ISA you will struggle to make 1.5%pa tax free. In multiple current accounts you could average 3.5% gross given basic rate tax payer 2.9% net.
Would strongly suggest you have a poke around on the budgeting and bank accounts board on this very website. Where you will find several people who are much more knowledgeable than me. More than willing to point you in the right direction.
Same goes for the OP of this very thread also. Get your head around it and don't just leave your money sitting in a savings account earning 0.5% pa.

GaleSF63

Wherever you put the money, as you aren't working, make sure that you don't pay tax on the interest - the bank or building society can give you a form to complete and it will be paid gross.

10pence

evenasus wrote: »

The ISA allowance is now £15,240 pa. So £30,480 per couple per year. Plenty enough for most people/couples.
I/we've contributed to ISAs since they were introduced in 1999 and before that TESSAs.
So you can build up ISAs and there is no maximum limit to the amount you can hold. (Used to be £9,000 in TESSAs)

You can only apply for one ISA per year, as it's subscription based savings product (or investment). Moving and merging is dependant upon the individual provider.

Once monies have been taken from the ISA you lose that amount from the subscription limits and/or tax free status. Upon death ISAs can be transferred to the surviving parties, still keeping their 'tax free' status.

ISA limits generally increase each year based on inflation or the consumer price index (CPI), so you can normally calculate new limits.


IN response to the threadstarter, there is nothing wrong with them creating the children some child ISAs as they will convert to adult ones at 16yr old.

cliffandsue

ceredigion wrote: »

Well yes and no. You could actually get as a couple £91,462 in ISAs in the next 21 month's.
Why you would wont to is a different question all together.
Within a cash ISA you will struggle to make 1.5%pa tax free. In multiple current accounts you could average 3.5% gross given basic rate tax payer 2.9% net.
Would strongly suggest you have a poke around on the budgeting and bank accounts board on this very website. Where you will find several people who are much more knowledgeable than me. More than willing to point you in the right direction.
Same goes for the OP of this very thread also. Get your head around it and don't just leave your money sitting in a savings account earning 0.5% pa.

Gulp!! now I am embarrassed.
We have £97,000 sitting in a basic current account with Natwest - it's been there for just over 12 months earning nothing. If £30000 of it had been put into an ISA we would have got more than we have even at 1.5%.