PET query

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  • Keep_pedalling
    Keep_pedalling Posts: 16,731 Forumite
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    WaywardDriver wrote: »
    When I looked at this I found there were 1200 transactions to categorise for 18/19 alone. So I agree with you in needing to do annually. Also while my bank statements can be downloaded for previous 7 years, for one credit card it's 12 months and for the other only 3 months. Have stopped using latter because of this.

    The other problem is that more and more people are opening and closing multiple bank accounts, not only does this mean a lot more accounts to look at, any closed accounts will no longer be accessible to get records retrospectively.
  • Gers
    Gers Posts: 12,074 Forumite
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    I've made a start!

    So far I've collated seven months of one year and the figures show more expenditure over income - however there is always a large balance left over each month. This is because she likes having access to money despite her ISAs and PBs.

    For instance:

    Month Total in Total out Balance at month end
    31/01/17 £1,963.48 £2,554.51 £5,924.47

    The balances are normally in upper £3000.

    When HMRC see these figures (hopefully a long way off) will they surmise that DM could not support any transfers out of surplus income?

    I just haven't got a HRMC mind! Some more advice would be welcomed.

    Thanks

    In edit - I've just realise that the figures need to be in tax years and not calendar years! b u m
  • Gers
    Gers Posts: 12,074 Forumite
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    It has dawned on me that this process is not required as DM's assets will be under the IHT limit, especially as the NRB for the propertly has increased and the financial planning she did in 2012 is working.

    I will still plough through the statements, more of an insurance plan than anything else, just in case some mad central government goes completely loopy!

    Thanks so much for the advice. I can rest a bit more content now.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    Gers wrote: »
    It has dawned on me that this process is not required as DM's assets will be under the IHT limit, especially as the NRB for the property has increased and the financial planning she did in 2012 is working.

    I will still plough through the statements, more of an insurance plan than anything else, just in case some mad central government goes completely loopy!

    Thanks so much for the advice. I can rest a bit more content now.
    Remember that gifts over £3,000pa for the last 7 yrs will be added to her estate.
  • Gers
    Gers Posts: 12,074 Forumite
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    Tom99 wrote: »
    Remember that gifts over £3,000pa for the last 7 yrs will be added to her estate.

    Ah! I presume then that that means the monthly transfers from surplus income too? Back to square one then!

    It's a minefield out there - thanks for the heads up again.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    Gers wrote: »
    Ah! I presume then that that means the monthly transfers from surplus income too? Back to square one then!
    It's a minefield out there - thanks for the heads up again.
    Yes all gifts over £3,000pa in the last 7yrs have to be counted, unless you can demonstrate they were from surplus income.
  • Gers
    Gers Posts: 12,074 Forumite
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    Tom99 wrote: »
    Yes all gifts over £3,000pa in the last 7yrs have to be counted, unless you can demonstrate they were from surplus income.

    Yes, they are being made from surplus income so I will go back and make efforts with the bank statements.

    Thanks
  • WaywardDriver
    WaywardDriver Posts: 546 Forumite
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    Gers wrote: »
    It has dawned on me that this process is not required as DM's assets will be under the IHT limit, especially as the NRB for the propertly has increased and the financial planning she did in 2012 is working.
    If no IHT due then gifts in excess of £3k still have to be declared in IHT205 section 9.1: "Show the date and description of gifts, who they were made to and any exemptions you have deducted in the box below".
    Not clear to me how much detail required. e.g.
    2015/16 - gifts of £5,234 to **** (son)
    2016/17 - gifts of £5,567 to **** (son) etc
    Exempt as out of income.
    or is more detail required. e.g.
    2015/16 - gifts of £5,234 to **** (son), exempt as out of income; Income = £ 33,333, Normal Expenditure = £22,222
  • Boleyn19
    Boleyn19 Posts: 100 Forumite
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    Acting as an executor of one estate and helping out with another, I am so pleased the individuals kept very good records. It would have been nightmare otherwise. I have learned these lessons for my own departure.
    1. Give instructions for your funeral, such as music, it really helps the family.
    2. Keep excellent records of what assets you have and where.
    3. If IHT will be payable then have enough to cover the minimum in liquid assets so your executors do not have to try and find the cash.
    4. Only have executors who are major beneficiaries as there is a huge amount of work involved.
    and
    5. Live long and prosper.
  • crv1963
    crv1963 Posts: 1,372 Forumite
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    Boleyn19 wrote: »
    Acting as an executor of one estate and helping out with another, I am so pleased the individuals kept very good records. It would have been nightmare otherwise. I have learned these lessons for my own departure.
    1. Give instructions for your funeral, such as music, it really helps the family.
    2. Keep excellent records of what assets you have and where.
    3. If IHT will be payable then have enough to cover the minimum in liquid assets so your executors do not have to try and find the cash.
    4. Only have executors who are major beneficiaries as there is a huge amount of work involved.
    and
    5. Live long and prosper.

    As someone helping out following an unexpected bereavement I would second the above. Our situation is worsened because there was mention some years ago of making a will but it hasn't turned up so are having to follow intestate rules:-

    1) Funeral planning is made more difficult as no real idea of the type of service wanted by the deceased.
    2) Paperwork everywhere! Making collation harder.
    3) Not looking likely to apply.
    4) Intestate, made harder because of this, although not really a major issue in terms of who gets the estate, it is the very personal things such as jewelry, ornaments etc.
    5) Sadly not the case here.

    As a result of the above for ourselves we have started-

    1) Gathering ideas and have started "an expression of wish" which will be placed in my will.
    2) Obsessive filing underway, will at solicitor and copy at home- so no one can dispose of it! Not depositing at Probate Office as things may change in the future re- our wishes.
    3) Good point will have to get this sorted possibly it may apply to us as the figures change, will have 12- 18 months spending as easily accessible monies.
    4) Sorted!
    5) We'll do our best!
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
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