Wills, Trusts & IHT Planning - Expensive!

pphillips

DreSaver wrote: »

Thanks All,

Some good and pertinent advice -

Almost embarrassed to say but here goes - Net estate - £3.6M

Its 4.5k each (me and wife) we have 2 dependants (14 & 9)

HTH

Thanks!

Have you thought about reducing the value of your estate by using lifetime gifts?

onlyroz

What exactly is your aversion to paying inheritance tax? You won't need the money once you are dead and it sounds like your children will hardly be destitute once you're gone.

theoretica

Keep in mind that the government is quite good at changing the goalposts, and your situations will change. So it isn't just the one charge and it is paid forever, but looking at it every few years and redoing the whole lot maybe every decade.

Malthusian

onlyroz wrote: »

What exactly is your aversion to paying inheritance tax?

Probably exactly the same as your aversion to paying income and dividend tax. How are your ISAs doing?

onlyroz

Malthusian wrote: »

Probably exactly the same as your aversion to paying income and dividend tax. How are your ISAs doing?

I don't have an aversion to paying tax. And in general dead people have less need for money than people who are still alive - surely they are the perfect candidates for taxation?

Robinette

onlyroz wrote: »

I don't have an aversion to paying tax. And in general dead people have less need for money than people who are still alive - surely they are the perfect candidates for taxation?

Inheritance tax: the clue is in the name. Of course it won't impact those who are dead, but it will very much impact those who stand to inherit. If you had worked hard to provide for your family when you were no longer around, would you happily hand over 40 per cent? In the case of the OP, this is in excess of £1m after the basic and main residence allowances!

onlyroz

Robinette wrote: »

Inheritance tax: the clue is in the name. Of course it won't impact those who are dead, but it will very much impact those who stand to inherit. If you had worked hard to provide for your family when you were no longer around, would you happily hand over 40 per cent? In the case of the OP, this is in excess of £1m after the basic and main residence allowances!

Personally, if I'd earned enough to be able to provide my children with a £1M tax free bonanza then I'd be delighted to be able to contribute a nice sum back to the treasury after my death.

Mojisola

onlyroz wrote: »

Personally, if I'd earned enough to be able to provide my children with a £1M tax free bonanza then I'd be delighted to be able to contribute a nice sum back to the treasury after my death.

I’d prefer to give large sums to my favourite charities where I know it would be put to good use.

Malthusian

onlyroz wrote: »

I don't have an aversion to paying tax.

Sorry, I stalked your post history and you definitely have or had ISAs.

And in general dead people have less need for money than people who are still alive - surely they are the perfect candidates for taxation?

Inheritances are inherited by people who are still alive.

Personally, if I'd earned enough to be able to provide my children with a £1M tax free bonanza then I'd be delighted to be able to contribute a nice sum back to the treasury after my death.

"Back" to the Treasury? If all your money comes from the Treasury then I can see the logic of your point of view. But not all of us are the Duchess of somewhere or a lifelong quangocrat.

onlyroz

Malthusian wrote: »

Sorry, I stalked your post history and you definitely have or had ISAs.

Not at the moment.

Inheritances are inherited by people who are still alive.

Yup, and apparently the average age to receive one is 61. Not a time when most people have much use for a tax free bonanza.

All inheritances do is to increase inequality and starve the state of funds desperately needed to prop up the NHS and social services. At the very least they should be taxed in the same way as earned income.