Over the IHT threshold? Reduce it down - or do nothing?

Can we hope that those who delib run down their funds to the £23k mark will not complain when their dustbins are emptied less frequently, their hospital roofs fall in, there are no nurseries for their grandchildren, their roads are more pothole than road etc etc. Or propose better ways of funding public services?
There’s some hideous I’m-all-right-Jack-ness running through this thread.

Maddyone.
I was referring to people who will fall within the Inheritance tax bracket who have a large sum. Its sickening to see it disappear after family have tried to build up an inheritance for kids but have not taken financial advice.

Those of us who don’t have buy to let properties - not difficult to buy if you could afford a small deposit and get a mortgage, relying on rental income to make the payments - are, I would say, sensible. The costs which can be offset against income tax have been eroded, obtaining possession is likely to become more difficult shortly, and you pay CGT on any increase in value when you sell or give it away. I don’t envy anyone who boasts of having btl properties.

Have just been looking up a short video by Martin Lewis concerning IHT.

It’s very reassuring.

kircubbin2000

If you have inherited the money you will already have paid a large amount of tax after probate. Then when you die your children pay another whack so the government had now got 3 lots of tax from you!

Not always the case. Neither my parents nor my husband’s had enough money to pay any IHT.
But I agree it is money that they earned and paid tax on, including on the money with which they paid their mortgages. Our parents were not wealthy by any stretch of the imagination, although I’m pleased that in their later years my parents went on a number of cruises and a couple of long haul trips to Canada and America.

Newnanny anyone who is fortunate enough to have the assets you have should be sharing your good fortune with your family and others.

There are many ways you can do that quite legally and above board. The extensive property you have you will pay either CGT or IHT on you can use it much more usefully than you do now.

I agree GSM, Newnanny's post was tactless, at best. I do rather resent the inference that those of us without a buy to let empire and a substantial holiday home have somehow failed in life.

Ikesgranma - what a lovely post . Life is not in the doctor’s hands. I hope you prove them wrong

Germanshepherdsmum

I found newnanny’s post pretty offensive and unnecessarily detailed given what some here have posted about their financial situation. Instead of boasting about all the properties she and her husband have, how many bedrooms they have, what is or is not owing on mortgages and their largesse towards family and just a couple of charities and a kid in Africa she would do well to pay attention to the huge IHT bill they will face if they don’t get rid pdq and give more to charity. I don’t think I have ever read such an unpleasantly boastful and tactless post.

I thought the same.

If you have inherited the money you will already have paid a large amount of tax after probate. Then when you die your children pay another whack so the government had now got 3 lots of tax from you!

It's very unfair because you have already been taxed on this money whether income or savings interest.

Only one mention of equity release. It is something to be t thought about if you wish to make alterations to your current house.

One friend, whose husband developed Parkinsons, decided to release some equity on her house so that they could fly to New Zealand to visit their daughter and also take some other holidays. They had an enjoyable time (business class to NZ) and a while after her DH died, she sold the family home, repaid the money released and was able to buy a smaller house in a nearby village. She had no regrets at all.

Unlike Newnanny we are not wealthy. We are comfortable and own our own home. We gave our dc money towards a house deposit and a second hand car each. I’m so glad that we can help our dc out because they need help now not when we’re both dead. We struggled when our children were young and a little financial help would have made a huge difference. Unfortunately I have terminal cancer and according to my doctor I have 6 months left. I’m determined to prove him wrong though. We took our dc and dgc away several times last year for long weekends in Airbnbs because we think the memories we are making are more important than any money.

My mum and stepfather sold 75% of the equity of their house. They went on fabulous cruises and trips and generally lived the high life. When they both had to go into care homes because of dementia the house was sold and they were left with £28000 each. They are both in different council run homes and are very well looked after by the lovely staff. They were allowed to keep £23000 each and get £25 a week “spends”

In my experience those with the most money are the least likely to spend it.

With nowhere near the assets newnanny was boasting about I give my DC far more than that a year. She does sound rather tight.

That’s right. I have left money to all the charities to whom I make regular donations, probably about a dozen, but did so to benefit them rather than reduce IHT. I would give money to a chosen charity rather than the government any day. It’s always possible to increase the amount you leave to charity in your will, easily and cheaply. I keep an eye on things with that in mind. You should review your will regularly.

Birthto110 Any money left to charity in your will is deducted before IHT is calculated. So, if you are prepared to change your will if savings increase you could leave a sum to one or more charities that will keep your whole estate value just under IHT.

Definitely going to spend until we are below the IHT level! Already paid plenty of tax, saved up and bought a holiday home abroad. Now selling that and paying Capital Gains tax on any increase in value. Definitely not paying another 40% on top of that when we are gone. It’s premium economy travel for us now. Can’t quite bring myself to pay business class!! Don’t mind donating to worthy charities but don’t trust any of the political parties to spend it sensibly.

Count me in Bridie Poor old NHS worker no great wealth, not a lot left to give to anyone but I have a decent heart and live a reasonable life
Nothing at all to boast about though and brought three children up to be successful people with NO help and no finances from their father, done it all myself.

ISAs have been mentioned. Your spouse or civil partner can inherit your ISA without IHT being due.

But with anyone else it is treated as part of your estate for IHT calculations.

Don't forget, if you are giving money to people who are on benefits, even if they're working, will soon have the dwp checking out their finances.

I agree GSM - that was a rather boastful post by newnanny. - newnanny is in a different league altogether. I hope she is as open and honest with the IR …

I agree GSM, some of us worked hard in the NHS and can only dream!

Germanshepherdsmum

I found newnanny’s post pretty offensive and unnecessarily detailed given what some here have posted about their financial situation. Instead of boasting about all the properties she and her husband have, how many bedrooms they have, what is or is not owing on mortgages and their largesse towards family and just a couple of charities and a kid in Africa she would do well to pay attention to the huge IHT bill they will face if they don’t get rid pdq and give more to charity. I don’t think I have ever read such an unpleasantly boastful and tactless post.

Certainly " reading the room " is not amongst newnannys assets.