Giving money away

Think generational trusts are a tax avoidance scheme used by the very wealthy, which I assume most of us are not. It skips a generation and benefits grandchildren and probably costs a lot to manage… but perhaps worth it if squillions are involved.

Why don’t you have a generational trust Put everything in there & make your children beneficiaries Hence no inheritance tax

It’s a shame GSM isn’t here, I thought we were a bit old to be snowflakes. Obviously not. Apply gun to foot, etc.

David49

Gifting, you can give as much as you want from income subject to the 7yr rule
BUT you must maintain your lifestyle, you cannot give everything away then claim benefits or as we know care costs

I know someone who has done this and now claiming pension credit and had all the cost of living payments and a new heating system all for free.

Do please consult a solicitor and accountant. I did something similar a few years ago. As it was a rental property (as you say yours was) there was capital gains to pay as well as the inheritance tax liability. Accountant sorted it all and well worth the money.

I would think because she was unnecessarily judgmental and harsh

If they're having building work, would paying the bills get around it?

BlueBelle

She’s been banned

Why was she banned?

I hope GSM comes back her legal advice was v good. She was a bit abrupt at times but caring enough to help people with her legal knowledge.

You can give as much money as you like away, the potential tax arises when you die. At the moment as long as you survive more than seven years after the gift there's no tax to pay; otherwise there are various exemptions and sliding scales which are what help to keep accountants and lawyers in business ☹️.

HOWEVER there are rumours that Rachel Reeves is planning to drop the seven year moratorium in her autumn statement, so that all lifetime gifts count towards the tax bill, however old. So might be wise to do it before October - and even then, she might backdate, nothing is certain.

Our financial advisor said that if you make regular payments then that also falls outside inheritance tax. We both give £200 each every month to help with childcare costs as we live too far away to provide any physical help.It has to be a regular contribution.

Oh no ! I truly do miss her wise words !

Phone the tax authorities and ask them. They ought to know, and your bank should as well.

Personally at times I found GSM’s comments very vitriolic, harsh and unnecessary

There's always a lot of concern about inheritance tax yet less than 5 percent of estates pay anything. A lot of good advice had been given. Of course we watch the forthcoming budget with interest as it may change.

Gifting, you can give as much as you want from income subject to the 7yr rule
BUT you must maintain your lifestyle, you cannot give everything away then claim benefits or as we know care costs

I’m not sure GSM was actually banned, I think there was so much sniping that she gave up.

What did GSM do wrong. I would like her back

Welbeck two threads have been withdrawn relating to your post. Do you know how to start a petition to reinstate a removed person? I would definitely sign it.

we need GSM back.
forthwith !
not just for her legal expertise.
i really miss her.
can't we petition GNHQ ?

I’m sorry to hear that GSM has been banned. Is it known for sure, or could she possibly have been temporarily suspended for a few weeks?

She was so generous with her legal advice to folk on here. She will be missed.

It’s the £3k between them travels. However, if you didn’t give last financial year you can do that retrospectively, so a potential £6k between them.
Your husband (if you are married) can do the same.

Can you give 3000 to each of your children....I have 4. Or is it just one lot of 3000 which would have to be divided between them???

You can give someone as much money as you want, £100,000,£500,000, but if you die within 7 years then decreasing amounts of your gift will be taken into account when calculating the Inheritance tax due on your estate.

So die in year 1, if your estate is worth more than £325,000 then the whole will be added on for inheritance tax. If your total estate including the gift is less than £3225,000 then no tax will be paid.

The 7 year rule only matters if your assets are worth over the inheritance tax limit when you die . Leaving your house to a child or grand child increases the limit . Sadly it does not look likely that this limit will be increased soon.