£500k gift......

Goliath64

Sarahspangles said:

You might want a separate pot specifically earmarked for University costs.  You could help your children avoid loans completely, or if you are happy with them repaying loans via the new ‘tax tomorrow’ repayment method, you would still need to make up the difference between their maintenance needs and the reduced amount that they will be loaned due to parental income.

another good point. A 'uni' pot would be a good plan in case they wish to do this. Thank you

Goliath64

Band7 said:

As you say, everyone is different.

As much as I like this Forum, I wouldn't make decisions on £500k for my family based on the opinions expressed here, especially if I am a newbie to this board, but also because I wouldn't want to share all my details on an open Internet forum.

Just for clarity, I'm not a newbie on here. I'm simply posting this from an anon account as I clearly don't want anyone that knows me/us to know of this fortunate situation. From everything I've written noone will be able to work this out hence willingly being open on my income/financial status etc. Thanks Band7

Albermarle

Great uncle was a London lawyer, no children, two properties, no desire to setup trusts etc so the taxman has taken at least £1.5m in his will, lots left to charity etc. 

Maybe being a lawyer, he realised that setting up trusts is often not the very good solution that they are sometimes promoted as.

At least his tax bill would have been less by giving lots to charity. Apart from the actual gifts themselves, it reduces the % tax you pay on the rest.

Goliath64

kimwp said:

redux said:

If you're already considering a deed of variation, how about some of this going straight to your kids, instead of via you

This is what I scrolled to say too. £100k to each (in a trust fund?) will set them up very nicely.

I'd have a good think about an extension - so many people seem to do extensions, then only really use the extended bit, which isn't a great use of the house.

Hadn't considered this, purely the JISA involvement so another thing to consider, thank you. 

RE extension, plenty of thoughts to be had here, thanks.

Goliath64

Albermarle said:

Great uncle was a London lawyer, no children, two properties, no desire to setup trusts etc so the taxman has taken at least £1.5m in his will, lots left to charity etc. 

Maybe being a lawyer, he realised that setting up trusts is often not the very good solution that they are sometimes promoted as.

At least his tax bill would have been less by giving lots to charity. Apart from the actual gifts themselves, it reduces the % tax you pay on the rest.

Yes, that is a positive re charity giving. 

He had no interest in reducing his inheritance tax liability in the last ten years of his life. Literally none no matter what his brother in law suggested (since passed away but was adament not to give a penny to the tax man!)

Dave_5150

Goliath64 said:

Mine has been paid into fully since starting employment from uni (local government and my wifes more recently). 

Take a look into LGPS AVC's as they can be exceptionally tax efficient especially when taken as a cash free lump sum at the same as you access your pension. These may provide a different route to achieve some of your investment goals.

https://www.lgpsmember.org/your-pension/planning/paying-extra/#taking-your-additional-voluntary-contributions

Goliath64

Dave_5150 said:

Goliath64 said:

Mine has been paid into fully since starting employment from uni (local government and my wifes more recently). 

Take a look into LGPS AVC's as they can be exceptionally tax efficient especially when taken as a cash free lump sum at the same as you access your pension. These may provide a different route to achieve some of your investment goals.

https://www.lgpsmember.org/your-pension/planning/paying-extra/#taking-your-additional-voluntary-contributions

Thank you. Will absolutely explore this and note a 'pensions wise' phone number too.