Generational wealth planning

BlackKnightMonty

Cobbler_tone said:

michaels said:

I have mentioned to my parents 

Mine are the sort you don’t mention it to. The sort that you’ll have a sh*t storm to address when they are gone. The type you have ‘that’ discussion once. They are just old school but think they have a will which should be straight forward.
I’m going to give my kids money next year and tell them if there is anything left it’ll be a bonus. They have one property to share at the given time.

Ha ha, sounds like my parents. Head in the sand. Assets everywhere, including the USA. Zero interest in gifting anything. The headache will be huge (and stressful).

BlackKnightMonty

Albermarle said:

Jaco70 said:

Triumph13 said:

Trust is the key word.  As in 'Do I trust my kids, or do I need a trust?'

Probably not a straightforward question, but what is an example of a trust ?

Some would say a trust is a good way to fill the lawyers pockets with the high fees ! Certainly some seem keen to promote them. 

As already mentioned, for the 'Mass Affluent' they can bring complications, without necessarily bringing the supposed benefits. 
I think as you go to the Multi Millionaire level, they become more useful.

If everyone starts to wang their money in to protect from paying their own care or inheritance; surely the law will be changed to come after it.

I take a dim view of those who avoid taxes to the point where all their care is provided free to them but not free to other taxpayers.

Albermarle

BlackKnightMonty said:

Albermarle said: hi

Jaco70 said:

Triumph13 said:

Trust is the key word.  As in 'Do I trust my kids, or do I need a trust?'

Probably not a straightforward question, but what is an example of a trust ?

Some would say a trust is a good way to fill the lawyers pockets with the high fees ! Certainly some seem keen to promote them. 

As already mentioned, for the 'Mass Affluent' they can bring complications, without necessarily bringing the supposed benefits. 
I think as you go to the Multi Millionaire level, they become more useful.

If everyone starts to wang their money in to protect from paying their own care or inheritance; surely the law will be changed to come after it.

I take a dim view of those who avoid taxes to the point where all their care is provided free to them but not free to other taxpayers.

They are promoted as ways of avoiding care fees and IHT, by some firms.
However HMRC and Local authorities are not stupid , and many rules are in place to make using trusts less attractive than they first may seem.

BlackKnightMonty

Albermarle said:

BlackKnightMonty said:

Albermarle said: hi

Jaco70 said:

Triumph13 said:

Trust is the key word.  As in 'Do I trust my kids, or do I need a trust?'

Probably not a straightforward question, but what is an example of a trust ?

Some would say a trust is a good way to fill the lawyers pockets with the high fees ! Certainly some seem keen to promote them. 

As already mentioned, for the 'Mass Affluent' they can bring complications, without necessarily bringing the supposed benefits. 
I think as you go to the Multi Millionaire level, they become more useful.

If everyone starts to wang their money in to protect from paying their own care or inheritance; surely the law will be changed to come after it.

I take a dim view of those who avoid taxes to the point where all their care is provided free to them but not free to other taxpayers.

They are promoted as ways of avoiding care fees and IHT, by some firms.
However HMRC and Local authorities are not stupid , and many rules are in place to make using trusts less attractive than they first may seem.

That’s not my understanding. If the money is in a trust it’s totally off limits.

QrizB

BlackKnightMonty said:

Albermarle said:

They are promoted as ways of avoiding care fees and IHT, by some firms.
However HMRC and Local authorities are not stupid , and many rules are in place to make using trusts less attractive than they first may seem.

That’s not my understanding. If the money is in a trust it’s totally off limits.

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

Jaco70

BlackKnightMonty said:

Cobbler_tone said:

michaels said:

I have mentioned to my parents 

Mine are the sort you don’t mention it to. The sort that you’ll have a sh*t storm to address when they are gone. The type you have ‘that’ discussion once. They are just old school but think they have a will which should be straight forward.
I’m going to give my kids money next year and tell them if there is anything left it’ll be a bonus. They have one property to share at the given time.

Ha ha, sounds like my parents. Head in the sand. Assets everywhere, including the USA. Zero interest in gifting anything. The headache will be huge (and stressful).

My accountant told me a story about one of his clients, in very recent times. He implored him to give money to his adult grandkids (not sure why he didn’t suggest his kids), but he was dead against it. Said they might spend it on Porsches or drugs, even though my accountant told him they were sensible, and this was unlikely.

When he died, the IHT was around 500k. 

german_keeper

BlackKnightMonty said:

Albermarle said:

Jaco70 said:

Triumph13 said:

Trust is the key word.  As in 'Do I trust my kids, or do I need a trust?'

Probably not a straightforward question, but what is an example of a trust ?

Some would say a trust is a good way to fill the lawyers pockets with the high fees ! Certainly some seem keen to promote them. 

As already mentioned, for the 'Mass Affluent' they can bring complications, without necessarily bringing the supposed benefits. 
I think as you go to the Multi Millionaire level, they become more useful.

If everyone starts to wang their money in to protect from paying their own care or inheritance; surely the law will be changed to come after it.

I take a dim view of those who avoid taxes to the point where all their care is provided free to them but not free to other taxpayers.

How does tax avoidance help with getting care paid for? Would it not be more likely the opposite would happen?

BlackKnightMonty

german_keeper said:

BlackKnightMonty said:

Albermarle said:

Jaco70 said:

Triumph13 said:

Trust is the key word.  As in 'Do I trust my kids, or do I need a trust?'

Probably not a straightforward question, but what is an example of a trust ?

Some would say a trust is a good way to fill the lawyers pockets with the high fees ! Certainly some seem keen to promote them. 

As already mentioned, for the 'Mass Affluent' they can bring complications, without necessarily bringing the supposed benefits. 
I think as you go to the Multi Millionaire level, they become more useful.

If everyone starts to wang their money in to protect from paying their own care or inheritance; surely the law will be changed to come after it.

I take a dim view of those who avoid taxes to the point where all their care is provided free to them but not free to other taxpayers.

How does tax avoidance help with getting care paid for? Would it not be more likely the opposite would happen?

Er, that’s my point, it doesn’t.

BlackKnightMonty

Jaco70 said:

BlackKnightMonty said:

Cobbler_tone said:

michaels said:

I have mentioned to my parents 

Mine are the sort you don’t mention it to. The sort that you’ll have a sh*t storm to address when they are gone. The type you have ‘that’ discussion once. They are just old school but think they have a will which should be straight forward.
I’m going to give my kids money next year and tell them if there is anything left it’ll be a bonus. They have one property to share at the given time.

Ha ha, sounds like my parents. Head in the sand. Assets everywhere, including the USA. Zero interest in gifting anything. The headache will be huge (and stressful).

My accountant told me a story about one of his clients, in very recent times. He implored him to give money to his adult grandkids (not sure why he didn’t suggest his kids), but he was dead against it. Said they might spend it on Porsches or drugs, even though my accountant told him they were sensible, and this was unlikely.

When he died, the IHT was around 500k. 

From what I understand of their wills the grandkids get £2k each.