Will advice

beeza650

getmore4less wrote: »

In the current tax structure the main benefits are spouse exemption and transferable nil rate band.

Given your other comments I think you should look into this a bit more so you understand better the framework and implications.

Will do, but I guess that can go on the back burner for now - from what I understand already, the tax saving outweighs the risk of the inheritance been used unwisely.

getmore4less wrote: »

Probably worth making sure these are trusts and the correct beneficiaries to be outside your estate

Oh right - so insurance and pension might not be included in tax calcs - I can't change their sturcture, that's decided by my employer, the current beneficiary is my father. That in itself seems a bit odd as I could have something else written in my will I guess?

getmore4less wrote: »

Children under 18 still qualify as direct descendants for RNRB purposes as long as the correct trust is used, the default BMT qualifies as do some others.

Good to know - def going to need to investigate a trust then.

getmore4less wrote: »

As Sue says you need to look at a few basic death order scenario and consider the longer term as something put in place now will need to get modified or take account of everyone becoming adults or more kids happening.

Yes I'll note the scenarios down now so I have them clear in my mind.

getmore4less wrote: »

You also need to consider your asset base growing.

I can't immediately see how that would alter allocation...is that what you meant?

Thanks though - it's never simple is it!

beeza650

getmore4less wrote: »

one word you need to look up is "commorientes" there are some non obvious effects around IHT, intestacy & wills that will need considering.

Hmm had a quick Google....the examples focus on married couples which we will only become if I am terminally ill or we stay together for perhaps another 20+ years.

Is there a tax angle if I die at the same time as my daughter?

TBagpuss

I'd second the advice to speak to a solicitor, to discuss what you want to achieve, and how to do so. As your child is still fairly young, then setting up a trust (perhaps worded to include any subsequent children you may have) so that your child gets some money in their own right when they are older. You could also structure it to allow money to be advanced to mum for the child's benefit during her childhood.

In terms of tax planning, you would have to determine your priorities - for instance, gifting the money to your partner now might be tax efficient on your death, but of course would mean you would lose the right to be paid back now or if you separate, and so on.

Robin9

Putting money aside you need to consider the what if's should you and you partner both die.

Your daughter is 2 who would look after her.? Discuss with possible guardians.

Would you choose differently if your daughter is 7, 12, 17 ?

beeza650

TBagpuss wrote: »

I'd second the advice to speak to a solicitor, to discuss what you want to achieve, and how to do so.

Yes I will need a solicitor but I need to be as prepared as possible. My experience with solictiors so far has been poor, that goes for IFAs and accountantcies too for that matter. I'm using a recommended solictior now to handle the loan I made to my partner and it's been significantly suboptimal - we're still not finished!

TBagpuss wrote: »

In terms of tax planning, you would have to determine your priorities - for instance, gifting the money to your partner now might be tax efficient on your death, but of course would mean you would lose the right to be paid back now or if you separate, and so on.

I can't think of much action I can take now to reduce IHT, I'm not going to give money to my partner as the future there is too uncertain. I can afford to gift £3k to my daughter each year, that sounds like a good idea.

I need to find a good investment vehicle for her - she already has £7K from relatives.....but that's for a different forum

beeza650

Robin9 wrote: »

Your daughter is 2 who would look after her.? Discuss with possible guardians.
Would you choose differently if your daughter is 7, 12, 17 ?

My intial reaction is that she should live with grandparents. Mine would be "better" but they are in their 70s whereas my partners are 10+ years younger so for continuity, they could be more suitable. From what I know of my partner's sister and her fiannce it feels the best place would be for her to live with them...my partner doesn't even want to discuss it with them though!

Yorkshireman99

beeza650 wrote: »

Yes I will need a solicitor but I need to be as prepared as possible. My experience with solictiors so far has been poor, that goes for IFAs and accountantcies too for that matter. I'm using a recommended solictior now to handle the loan I made to my partner and it's been significantly suboptimal - we're still not finished!

I can't think of much action I can take now to reduce IHT, I'm not going to give money to my partner as the future there is too uncertain. I can afford to gift £3k to my daughter each year, that sounds like a good idea.

I need to find a good investment vehicle for her - she already has £7K from relatives.....but that's for a different forum

You really need a specialist such as a STEP member. Ask around as a personal recomendation is best.