Thoughts on how to invest inheritance?

BrockStoker

Thank you for your post Harry.


I didn't want to say anything at first, but it's great you picked up on it too, making me think that this is indeed a possibility.



My grandmother (rather than my father who was divorced) died in Aug 2004 (so about 14 years between her and my mum's death) , and passed property on to my mum (with the intention to pass it on to me) which I'm fairly sure would have been taxed at the time, so I was thinking this might a way to reduce the tax paid now, and have been looking into it over the last few days, but was unsure if it might apply in this case.


Your post has given me hope that this might be a legitimate route to take, and I will bring it up with my solicitor and tax-advisor. Thank you!

Clive_Woody

BrockStoker wrote: »

Thank you for your post Harry.


I didn't want to say anything at first, but it's great you picked up on it too, making me think that this is indeed a possibility.



My grandmother (rather than my father who was divorced) died in Aug 2004 (so about 14 years between her and my mum's death) , and passed property on to my mum (with the intention to pass it on to me) which I'm fairly sure would have been taxed at the time, so I was thinking this might a way to reduce the tax paid now, and have been looking into it over the last few days, but was unsure if it might apply in this case.


Your post has given me hope that this might be a legitimate route to take, and I will bring it up with my solicitor and tax-advisor. Thank you!

Sorry for your loss, it's not easy to be thinking about money issues at a time like this but is a sensible thing to do and can be a helpful distraction (apologies if that comes across blunt, it was not intended that way. I have had friends in a similar position who had the same challenges to face).

A close friend who inherited his fathers estate used an accountant to work through the options and manage the IHT payment. The accountant saved a very significant sum using her knowledge and experience. I think as others have already stated, given the sum of money involved, profession advice for IHT and financial planning would be advisable.

The challenge is finding the right people to offer the advice.

BrockStoker

Thank you for the kind words and suggestions Clive.



You are right, and I have found it helpful to keep myself busy with things.


I'm hopeful that my mum's tax advisor (who also knew her accountant) will be able to help.

webjaved

Keep us posted with how you get on.

BrockStoker

webjaved wrote: »

Keep us posted with how you get on.

After asking my tax advisor, it seems the only course of action which was worth (or possible) to pursue at this point in time (I will speak more with him about what can be done later) was the loan to use up my wife's and my ISA allowances.


So I just tried to take out a loan with Zopa for the max. it would let me (25K) and was refused. It seems the main reason for that was because I had to enter "0" for my current income. It specifically stated the only income I could include was from a job or pension, and since my only income is from my own investment portfolio, I was unable to enter my 12k pa income.


So it looks like there is not a lot I can do for the moment.


Interestingly, while trying to set up a bank account for my wife (much ringing/running around!), we were speaking to the manager of our TSB branch, who seemed to think that the loan was a terrible idea due to the charges. I guess she was missing something? I realise now that I did not mention that I was looking to take out a long term loan, although I did say the plan was to pay it back early.