Getting my money out of the bank.......

Ergates

NotRichAtAll said:

ok just to clarify the amount in question is 100k.
Now why should i pay tax if i can avoid it?

Because it's the law.   If, upon death, your estate is worth more than the IHT threshold (currently £325k), then your estate is legally obliged to pay tax on the amount above the threshold.

If you (or your executor) take steps to hide money from HMRC (by, for instance, withdrawing £100k in cash and hiding it under the bed) then this is tax evasion.  Which is a crime.

If you give people money (or assets) and then die within 7 years, then this is still considered part of your estate.  If you survive more than 7 years after giving away then it is not considered part of your estate.   This is to prevent people giving everything to their children from their deathbed.

saajan_12

NotRichAtAll said:

ok just to clarify the amount in question is 100k.
Now why should i pay tax if i can avoid it? after all i would not be here to pay it  

Why should an employer pay minimum wage if a desperate worker is willing to work for £5 an hour cash in hand? Why should employee pay income tax if they can receive income cash in hand? Why should a driver abide by the speed limit if there's no cameras around? After all they're long gone from the scene of the crime : )

Because its the law. Your estate would be liable for the tax, and the executor can be held criminally liable if they don't declare the full size of the estate including recent gifts. 

Nebulous2

Some random thoughts on this:- 

As per the joke about asking for directions in a rural area. "If I was going there I wouldn't have started from here." 

Ending up with £100k in one place is a bit silly if that is indeed what you have done. It's over the FSCS limit, and its unlikely to be getting decent interest, to get anything from it you would need to work it harder than that. 

Last time I needed a lot of cash, a mere £10k, so not really comparable, I simply drew the maximum I could from several debit cards over several days.

£100k would take a bit longer, but if you set to it you would get there eventually. I don't think there would be any awkward questions in taking £500 a day from an ATM. Recognising the folly of the enterprise and trying to pay it back in might be more problematic however. 

You introduce some additional risks in holding cash. Theft, fire and inflation being some that spring immediately to mind. You might not be getting very much with £100k in one bank account, but its likely to be more than you get in a biscuit tin. 

FIREDreamer

born_again said:

FIREDreamer said:

EssexExile said:

If you want to give your money to people then just do bank transfers, if it's lots then you may have to pay to use CHAPS, but you say it's £100k and to several people so I don't see a problem.

I suppose if the bank account was closed afterwards (or a burner account was open, used for transfers and closed afterwards) there would be nothing recorded for inheritance tax purposes?

Think again..

We intend to stay (at least £100k) below £1m so not an issue in our case. Trading my pension pot for RPI JL annuities helped greatly.