Wills, Trusts & IHT Planning - Expensive!

Options
2

Comments

  • pphillips
    pphillips Posts: 1,631 Forumite
    First Anniversary First Post Name Dropper
    Options
    DreSaver wrote: »
    Thanks All,

    Some good and pertinent advice -

    Almost embarrassed to say but here goes - Net estate - £3.6M

    Its 4.5k each (me and wife) we have 2 dependants (14 & 9)

    HTH

    Thanks!

    Have you thought about reducing the value of your estate by using lifetime gifts?
  • onlyroz
    onlyroz Posts: 17,661 Forumite
    First Post Combo Breaker First Anniversary
    Options
    What exactly is your aversion to paying inheritance tax? You won't need the money once you are dead and it sounds like your children will hardly be destitute once you're gone.
  • theoretica
    theoretica Posts: 12,305 Forumite
    First Post Name Dropper Photogenic First Anniversary
    Options
    Keep in mind that the government is quite good at changing the goalposts, and your situations will change. So it isn't just the one charge and it is paid forever, but looking at it every few years and redoing the whole lot maybe every decade.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Malthusian
    Malthusian Posts: 10,938 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    onlyroz wrote: »
    What exactly is your aversion to paying inheritance tax?

    Probably exactly the same as your aversion to paying income and dividend tax. How are your ISAs doing?
  • onlyroz
    onlyroz Posts: 17,661 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Malthusian wrote: »
    Probably exactly the same as your aversion to paying income and dividend tax. How are your ISAs doing?
    I don't have an aversion to paying tax. And in general dead people have less need for money than people who are still alive - surely they are the perfect candidates for taxation?
  • Robinette
    Robinette Posts: 246 Forumite
    First Anniversary First Post
    edited 25 May 2018 at 1:55PM
    Options
    onlyroz wrote: »
    I don't have an aversion to paying tax. And in general dead people have less need for money than people who are still alive - surely they are the perfect candidates for taxation?

    Inheritance tax: the clue is in the name. Of course it won't impact those who are dead, but it will very much impact those who stand to inherit. If you had worked hard to provide for your family when you were no longer around, would you happily hand over 40 per cent? In the case of the OP, this is in excess of £1m after the basic and main residence allowances!
  • onlyroz
    onlyroz Posts: 17,661 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Robinette wrote: »
    Inheritance tax: the clue is in the name. Of course it won't impact those who are dead, but it will very much impact those who stand to inherit. If you had worked hard to provide for your family when you were no longer around, would you happily hand over 40 per cent? In the case of the OP, this is in excess of £1m after the basic and main residence allowances!
    Personally, if I'd earned enough to be able to provide my children with a £1M tax free bonanza then I'd be delighted to be able to contribute a nice sum back to the treasury after my death.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
    Name Dropper First Post First Anniversary
    Options
    onlyroz wrote: »
    Personally, if I'd earned enough to be able to provide my children with a £1M tax free bonanza then I'd be delighted to be able to contribute a nice sum back to the treasury after my death.

    I’d prefer to give large sums to my favourite charities where I know it would be put to good use.
  • Malthusian
    Malthusian Posts: 10,938 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    onlyroz wrote: »
    I don't have an aversion to paying tax.

    Sorry, I stalked your post history and you definitely have or had ISAs.
    And in general dead people have less need for money than people who are still alive - surely they are the perfect candidates for taxation?
    Inheritances are inherited by people who are still alive.
    Personally, if I'd earned enough to be able to provide my children with a £1M tax free bonanza then I'd be delighted to be able to contribute a nice sum back to the treasury after my death.
    "Back" to the Treasury? If all your money comes from the Treasury then I can see the logic of your point of view. But not all of us are the Duchess of somewhere or a lifelong quangocrat.
  • onlyroz
    onlyroz Posts: 17,661 Forumite
    First Post Combo Breaker First Anniversary
    Options
    Malthusian wrote: »
    Sorry, I stalked your post history and you definitely have or had ISAs.
    Not at the moment.
    Inheritances are inherited by people who are still alive.
    Yup, and apparently the average age to receive one is 61. Not a time when most people have much use for a tax free bonanza.

    All inheritances do is to increase inequality and starve the state of funds desperately needed to prop up the NHS and social services. At the very least they should be taxed in the same way as earned income.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards