Give £s to sons/IHT/Dep of Assets

Keep_pedalling

castle96 wrote: »

thanks all. Original Q(s) then....
I do a 2nd DofV - Dof A??
How do they enforce against sons - sell up/ Take out loan/remortgage. IHT.....

"Professional advice" for what, as there seems to no way of mitigating IHT. Solicitor needed "professional advice" to do 2nd D of V

No, professional advice with regard to investing the money you don’t give away, unless you still have this mad idea to give it all away.

After all the advice you have been given here, why do you think there is no way of mitigating IHT?

Assuming you plan to leave everything to your children, then reducing your estate to the level that IHT will be out of the picture is simple. All you need to do is give away enough of your liquid assets to get them down to the nil rate band (£325k) your house will be exempt due to the residence nil rate band.

If you make the gift via a DoV then it will not be subject to IHT even if you die in within 7years.

Keeping back £325k for you self should mean you can boost your very modest income by around £10k a year with little risk you will run out in your lifetime.

castle96

OK so a 2nd DofV will be OK re IHT. Would it be OK re Dof A as well ?

soolin

I'll leave the clever ones to explain about IHT and DOfV but just wanted to add that at 68 you have plenty of time left to get out and enjoy life. Don't leave yourself with just the minimum to get by with, leave some for treats- you don't need a new car now, but what about in 5-10 years time ? The same with everything, what about if you meet someone, even just a companion and want to travel - do it in style.

You are not a great deal older than me really, but I am having the time of my life, going to events, theatre, supper clubs, holidays etc. A few years back my OH and I gifted our sons enough money for the start of a deposit on their houses, They all managed to buy with a mortgage (my 2nd son actually got the keys to his 1st house today!) . I intend enjoying myself well into my late 80s, some of the people I work with are in their 80s and still having a great life.
Completely off topic I know, but just something to think about! 68 is NOT old.

p00hsticks

soolin wrote: »

I'll leave the clever ones to explain about IHT and DOfV but just wanted to add that at 68 you have plenty of time left to get out and enjoy life. Don't leave yourself with just the minimum to get by with, leave some for treats- you don't need a new car now, but what about in 5-10 years time ? The same with everything, what about if you meet someone, even just a companion and want to travel - do it in style.

You are not a great deal older than me really, but I am having the time of my life, going to events, theatre, supper clubs, holidays etc. A few years back my OH and I gifted our sons enough money for the start of a deposit on their houses, They all managed to buy with a mortgage (my 2nd son actually got the keys to his 1st house today!) . I intend enjoying myself well into my late 80s, some of the people I work with are in their 80s and still having a great life.
Completely off topic I know, but just something to think about! 68 is NOT old.

I'll second this.

I can't imagine that £13k income leaves much wiggle room when it comes to potential large expenditure - e.g. new car, replacement boiler, new roof, holidays, going private for ops which are not considered high priority on the NHS (e.g cataracts).

So in your shoes I'd be very reluctant to give the bulk of my savings away when you are still relatively young.

Keep_pedalling

p00hsticks wrote: »

I'll second this.

I can't imagine that £13k income leaves much wiggle room when it comes to potential large expenditure - e.g. new car, replacement boiler, new roof, holidays, going private for ops which are not considered high priority on the NHS (e.g cataracts).

So in your shoes I'd be very reluctant to give the bulk of my savings away when you are still relatively young.

I know I have already said this a couple of times, but I will 3rd it as I get the impression the OP is still planning to do something really stupid despite previous advice not to do so.

Keep_pedalling

castle96 wrote: »

OK so a 2nd DofV will be OK re IHT. Would it be OK re Dof A as well ?

Probably, you will still have an asset that will pay for around 3 years of residential care, but why are you so hell bent on making yourself poor?

soolin

p00hsticks wrote: »

I'll second this.

I can't imagine that £13k income leaves much wiggle room when it comes to potential large expenditure - e.g. new car, replacement boiler, new roof, holidays, going private for ops which are not considered high priority on the NHS (e.g cataracts).

So in your shoes I'd be very reluctant to give the bulk of my savings away when you are still relatively young.

Keep_pedalling wrote: »

I know I have already said this a couple of times, but I will 3rd it as I get the impression the OP is still planning to do something really stupid despite previous advice not to do so.

The thing that made me worry is that someone at 68 is already looking at a point in the near future where they will need to go into a home, yet say they are in good health.

OP Even if you do opt to go into a care home for some strange reason at a young age you are going to need money, my mother moved into a retirement flat within a complex in her late 70s as she was in poor health - and it cost her a fortune. Every few months it seemed the ground rate went up a few pounds, then the maintenance of the garden contract doubled, she had a big bill as they did work on the roof- it all came out of savings and seemed never ending. Her small retirement flat also cost almost as much as a good sized 3 bed house in the same area , she had to use savings to pay the moving costs just to downsize.

Sea_Shell

Threads like these seem to always come across as "I'll give the shirt off my back to help my kids", even if it leaves the posters themselves short.

It's as if their own lives don't count!

That may be admirable, but quite sad in another way.

happyandcontented

We have helped all of our sons onto the property ladder and ensured that they have had a good education which means they all have graduate careers.

That is where it ends I am afraid, ( barring any illness or other serious unforeseen circumstances when of course we would be dipping into our coffers like a shot) we will leave them the house and what is left after we have had a damn good time with it and secured our lives in case of care needs.

I think you are crackers ( no offence intended) to be even contemplating leaving yourself with 13k income pa and giving the bulk of your inheritance away.

soolin

The one other thing I must ask, and then I'll shut up hijacking this thread, OP, is anyone at all pressurising you to do this?

I know that is an odd question but in my extended family some years back we had a person of about your age being pressurised by a child to hand everything over to them - it was being done in such a way as to not seem like pressure and to seem more like someone trying to help- but it was elder abuse in that the parent felt that they absolutely had to go ahead- despite the rest of the family trying to protect them.

If any other person is party to this decision, walk away, clear your head and speak to a disinterested third party to see how they view it.