Paying into Son's LISA

6022tivo

Keep_pedalling said:

6022tivo said:

Keep_pedalling said:

If your estate is actually within IHT territory  then £3k a year is not going to reduce it very much. What is your net worth and marital status?

I think it is pretty close. I'm not 50 yet. I do have some left over from my late wife. So it calculates at around 700k I think that I'm allowed to have. 

Protecting the house in someway maybe worth doing, then that gives me loads of wriggle room. 

Assuming you inherited all of your wife’s estate and your home is worth at least £350k you have a total of £1M in exemptions so you are well short of it at the moment. 

Keep_pedalling said:

6022tivo said:

Keep_pedalling said:

If your estate is actually within IHT territory  then £3k a year is not going to reduce it very much. What is your net worth and marital status?

I think it is pretty close. I'm not 50 yet. I do have some left over from my late wife. So it calculates at around 700k I think that I'm allowed to have. 

Protecting the house in someway maybe worth doing, then that gives me loads of wriggle room. 

Assuming you inherited all of your wife’s estate and your home is worth at least £350k you have a total of £1M in exemptions so you are well short of it at the moment. 

Keep_pedalling said:

6022tivo said:

Keep_pedalling said:

If your estate is actually within IHT territory  then £3k a year is not going to reduce it very much. What is your net worth and marital status?

I think it is pretty close. I'm not 50 yet. I do have some left over from my late wife. So it calculates at around 700k I think that I'm allowed to have. 

Protecting the house in someway maybe worth doing, then that gives me loads of wriggle room. 

Assuming you inherited all of your wife’s estate and your home is worth at least £350k you have a total of £1M in exemptions so you are well short of it at the moment. 

From memory... 20 years ago now.  She died without a will intestate. 
I received £125k which was mainly her share of the house as it was bought a certain way we kept our shares in it? 

Rest went to the children. Her total value of estate inc her share of the house was around 200k from memory. 

I remember thinking I have a 500k allowance, but I have her remaining 200-300k to add on as long as I don't get married etc etc.. 

House value is £280k 
Savings £250k
Pension Pot £250k

strawb_shortcake

6022tivo said:

eskbanker said:

6022tivo said:

I've picked £3k as it will be my annual allowed gift which is not regarded for inheritance tax under the 7 year rule.

Personally I'd go with the full £4K (maximum annual LISA contribution) - even if some of it was ultimately subject to IHT, it would have been if left in the estate anyway, but he'd benefit from the extra 25% uplift.

TBH, we are having a crap time with an estate and the council, and the least figures and calculations to worry about on forms after my passing will make me feel better for my son when I go. The 3k rule is simple and he's no worry on potential probate forms. 
For the sake of 4k, he then has to put the annual gifts in, take off 3k a year and all that and although it's simple it's not worth it. 

Also myself putting in £3k allows him to chuck £1k into it himself which will be good for him if he can... 
I plan to do this for up to the next 30 years(or death, whichever comes sooner) 

He's currently taken on a chunky mortgage and plans a family soon, so saving is not currently his priority. 

Regarding your plan to do this for 30 years, how old is your Son? You can only contribute into a LISA until the age of 50. So you'd need to look for another means once he's passed 50

6022tivo

annabanana82 said:

6022tivo said:

eskbanker said:

6022tivo said:

I've picked £3k as it will be my annual allowed gift which is not regarded for inheritance tax under the 7 year rule.

Personally I'd go with the full £4K (maximum annual LISA contribution) - even if some of it was ultimately subject to IHT, it would have been if left in the estate anyway, but he'd benefit from the extra 25% uplift.

TBH, we are having a crap time with an estate and the council, and the least figures and calculations to worry about on forms after my passing will make me feel better for my son when I go. The 3k rule is simple and he's no worry on potential probate forms. 
For the sake of 4k, he then has to put the annual gifts in, take off 3k a year and all that and although it's simple it's not worth it. 

Also myself putting in £3k allows him to chuck £1k into it himself which will be good for him if he can... 
I plan to do this for up to the next 30 years(or death, whichever comes sooner) 

He's currently taken on a chunky mortgage and plans a family soon, so saving is not currently his priority. 

Regarding your plan to do this for 30 years, how old is your Son? You can only contribute into a LISA until the age of 50. So you'd need to look for another means once he's passed 50

Ahhh ok. So under current rules. Pay into up to the age of 50, access at 60?? 

So will be 20 years 

strawb_shortcake

6022tivo said:

annabanana82 said:

6022tivo said:

eskbanker said:

6022tivo said:

I've picked £3k as it will be my annual allowed gift which is not regarded for inheritance tax under the 7 year rule.

Personally I'd go with the full £4K (maximum annual LISA contribution) - even if some of it was ultimately subject to IHT, it would have been if left in the estate anyway, but he'd benefit from the extra 25% uplift.

TBH, we are having a crap time with an estate and the council, and the least figures and calculations to worry about on forms after my passing will make me feel better for my son when I go. The 3k rule is simple and he's no worry on potential probate forms. 
For the sake of 4k, he then has to put the annual gifts in, take off 3k a year and all that and although it's simple it's not worth it. 

Also myself putting in £3k allows him to chuck £1k into it himself which will be good for him if he can... 
I plan to do this for up to the next 30 years(or death, whichever comes sooner) 

He's currently taken on a chunky mortgage and plans a family soon, so saving is not currently his priority. 

Regarding your plan to do this for 30 years, how old is your Son? You can only contribute into a LISA until the age of 50. So you'd need to look for another means once he's passed 50

Ahhh ok. So under current rules. Pay into up to the age of 50, access at 60?? 

So will be 20 years 

Yes that's correct 

Albermarle

6022tivo said:

Keep_pedalling said:

6022tivo said:

Keep_pedalling said:

If your estate is actually within IHT territory  then £3k a year is not going to reduce it very much. What is your net worth and marital status?

I think it is pretty close. I'm not 50 yet. I do have some left over from my late wife. So it calculates at around 700k I think that I'm allowed to have. 

Protecting the house in someway maybe worth doing, then that gives me loads of wriggle room. 

Assuming you inherited all of your wife’s estate and your home is worth at least £350k you have a total of £1M in exemptions so you are well short of it at the moment. 

Keep_pedalling said:

6022tivo said:

Keep_pedalling said:

If your estate is actually within IHT territory  then £3k a year is not going to reduce it very much. What is your net worth and marital status?

I think it is pretty close. I'm not 50 yet. I do have some left over from my late wife. So it calculates at around 700k I think that I'm allowed to have. 

Protecting the house in someway maybe worth doing, then that gives me loads of wriggle room. 

Assuming you inherited all of your wife’s estate and your home is worth at least £350k you have a total of £1M in exemptions so you are well short of it at the moment. 

Keep_pedalling said:

6022tivo said:

Keep_pedalling said:

If your estate is actually within IHT territory  then £3k a year is not going to reduce it very much. What is your net worth and marital status?

I think it is pretty close. I'm not 50 yet. I do have some left over from my late wife. So it calculates at around 700k I think that I'm allowed to have. 

Protecting the house in someway maybe worth doing, then that gives me loads of wriggle room. 

Assuming you inherited all of your wife’s estate and your home is worth at least £350k you have a total of £1M in exemptions so you are well short of it at the moment. 

From memory... 20 years ago now.  She died without a will intestate. 
I received £125k which was mainly her share of the house as it was bought a certain way we kept our shares in it? 

Rest went to the children. Her total value of estate inc her share of the house was around 200k from memory. 

I remember thinking I have a 500k allowance, but I have her remaining 200-300k to add on as long as I don't get married etc etc.. 

House value is £280k 
Savings £250k
Pension Pot £250k

Pension pot left when you die is not part of your estate, and will not be included in any IHT calculation.
Unless legislation changes at some point.
Make sure you have filled in the Expression of Wish form, to indicate to the provider/Trustees who you want any pot to go to.
It is not covered by any will you leave, it is separate.

amanda1024

ColdIron said:

Whilst I google the mass adverts that come back, any recommendations of a  provider?

Here's a list from Which! It looks fairly comprehensive. Hargreaves Lansdown and AJ Bell are the big players

https://www.which.co.uk/money/savings-and-isas/isas/lifetime-isas-a5OTi7J6jRz2#best-stocks-and-shares-lifetime-isa-providers-and-rates

One that’s not on that list is Dodl. I think good for small investments like in a LISA because the fees are low (most of my LISA is with Dodl)

6022tivo

amanda1024 said:

ColdIron said:

Whilst I google the mass adverts that come back, any recommendations of a  provider?

Here's a list from Which! It looks fairly comprehensive. Hargreaves Lansdown and AJ Bell are the big players

https://www.which.co.uk/money/savings-and-isas/isas/lifetime-isas-a5OTi7J6jRz2#best-stocks-and-shares-lifetime-isa-providers-and-rates

One that’s not on that list is Dodl. I think good for small investments like in a LISA because the fees are low (most of my LISA is with Dodl)

I've just had a look at the site. 

Looks right up his street to be honest. 

Any other comparison or reviews for Dodl? 

wjr4

Why not look to help him now when he might need it the most and you can see him enjoying his life made easier? I’m just throwing out random ideas. 

6022tivo

wjr4 said:

Why not look to help him now when he might need it the most and you can see him enjoying his life made easier? I’m just throwing out random ideas. 

It's a good point. 
He's fine at the moment. Both working. 
I've helped him with his first home this year. so happy days. They don't need anything specific in the short term. 
They will hit a sticking point (Mortgage ways) if either lose their jobs, so have that in reserve. 

I'm just looking at options, like the idea of the 25% bonus from the UK Gov, and will be a good little investment pot as it ticks along in a S&S product.