IHT Options for a £1,000,000+ estate

xylophone

You say that your MIL is illiterate in her native tongue and in English.

Has anybody ever offered to teach her to read and write?


How will she manage if her husband predeceases her? Will she grant PoA to her children?

CityOwl

xylophone wrote: »

You say that your MIL is illiterate in her native tongue and in English.

Has anybody ever offered to teach her to read and write?

If I genuinely thought she wanted to learn, I would try to get someone to teach her. I can't even imagine how she feels about it, but I once saw her "drawing" her signature on a document and it was painful because she couldn't get it right. I feel like I would be humiliating her by bringing it up at the age that she is. I was avoiding the word illiterate because I didn't want to use it to describe a woman who has achieved so much in her life.

xylophone wrote: »

How will she manage if her husband predeceases her? Will she grant PoA to her children?

This thread has gone somewhere that I hadn't expected it to. This evening, my husband and I discussed how she would manage an estate this size without the ability to read and write. My husband is going to ask his dad to simplify his affairs as much as possible.

We also spoke about getting a LPA, we might have used the wrong terminology if a POA is not the same thing. There will then be the issue of which child/children manage her affairs as one is over 50 miles away. I suggested they ask MIL who she would prefer and maybe a back up in case something happens to the first one. We don't know too much about it, but this is now the top priority over anything else.

p00hsticks

CityOwl wrote: »

We also spoke about getting a LPA, we might have used the wrong terminology if a POA is not the same thing.

LPA (Lasting Power of Attorney) is now the correct terminology although many still use the old term POA. Note that there are two types - a 'health and welfare' one and a 'property and financial affairs one'.

If your FIL is as much a skinflint as you suggest you may struggle to convince him to get both in place for both him and MIL - each LPA costs £82 to register and a solicitor will charge a few hundred pounds to complete them, although it is possible to download, fill in and submit the forms yourself if you are confident you can complete them correctly

https://www.gov.uk/power-of-attorney

Linton

Has FIL considered "Gifts From Income"? If he normally spends less than his income (eg DB pensions, State Pension, interest, dividends, rental income but not capital gain) without reducing his savings or investments he can give away the excess on a regular basis free of any tax. It would be necessary to keep detailed records so it can be easily demonstrated to HMRC that the gifts really are from income. You can carry unsued income forward for 1 year.



He/you would need to research the details.

Owain_Moneysaver

CityOwl wrote: »

This thread has gone somewhere that I hadn't expected it to. This evening, my husband and I discussed how she would manage an estate this size without the ability to read and write. My husband is going to ask his dad to simplify his affairs as much as possible.

If there are difficult family relationships it is worth considering that she could be extremely vulnerable following a bereavement and other members of the family might take advantage of that.

xylophone

If I genuinely thought she wanted to learn, I would try to get someone to teach her. I can't even imagine how she feels about it, but I once saw her "drawing" her signature on a document and it was painful because she couldn't get it right

I simply cannot understand how your FIL/her children have left her in illiteracy. You find the word harsh but if the fact is faced it can be remedied.

Why not get hold of the book I recommended and have a go?

xylophone

I suggested they ask MIL who she would prefer and maybe a back up in case something happens to the first one.

Very wise.

https://www.gov.uk/enduring-power-attorney-duties/more-attorneys

CityOwl

p00hsticks wrote: »

LPA (Lasting Power of Attorney) is now the correct terminology although many still use the old term POA. Note that there are two types - a 'health and welfare' one and a 'property and financial affairs one'.

If your FIL is as much a skinflint as you suggest you may struggle to convince him to get both in place for both him and MIL - each LPA costs £82 to register and a solicitor will charge a few hundred pounds to complete them, although it is possible to download, fill in and submit the forms yourself if you are confident you can complete them correctly

https://www.gov.uk/power-of-attorney

Thank you for the clarification, this is definitely not an area to penny-pinch. I will tell hubby to get them done properly via a solicitor because MIL's illiteracy is an issue and I think it would be best to have a third party witness that it is all above board and that she is not being taken advantage of.

Owain_Moneysaver wrote: »

If there are difficult family relationships it is worth considering that she could be extremely vulnerable following a bereavement and other members of the family might take advantage of that.

MIL is formidable, she is no shrinking violet and does not hold back on her opinions. I was petrified when I first got married. Her vulnerability will be not understanding the paperwork, but she is not daft enough to sign anything without someone trusted being there to guide her.

xylophone wrote: »

I simply cannot understand how your FIL/her children have left her in illiteracy. You find the word harsh but if the fact is faced it can be remedied.

Why not get hold of the book I recommended and have a go?

I can't speak for FIL but he worked day and night while MIL stayed a home to raise 4 children, she only began working when the youngest started school. She is not fluent in English and the children's first language is English (they cannot read or write in her native tongue) and so there is no meeting in the middle. I sincerely believe she would have learnt if she wanted to, the only thing she regrets is not learning to drive.

On the bright side, she is sort of numerate. She can shop, uses her debit card in the bank to get her pension and knows all the bus routes in the area.

kidmugsy

CityOwl wrote: »

I was avoiding the word illiterate because I didn't want to use it to describe a woman who has achieved so much in her life.

We're mostly too old to be snowflakes here. Remember that all our ancestors were illiterate if you go back far enough.

CityOwl

kidmugsy wrote: »

We're mostly too old to be snowflakes here. Remember that all our ancestors were illiterate if you go back far enough.

Moi?

I just don't want her to be perceived as one dimensional or a victim, I really appreciate everyone's input, thank you.