IHT- how to avoid if you have enough wealth

Doodledog well go back to the original comment and see why I felt sorry for growstuff’s children.

ronib

growstuff it’s okay to be wealthy- it isn’t a sin.

Where did I claim it's a sin? You're imagining things.

PS. I think my children quite like me! In fact, I know they do.

ronib

Doodledog well go back to the original comment and see why I felt sorry for growstuff’s children.

No need to feel sorry for them. There are plenty of threads on GN about estrangement and people who have issues with their children. I'm not one of them. My children and I are very close. I'm proud of them and they're proud of who I am.

GrannyGravy13

Deprivation of asset’s is a mute point

If I or anybody purchase a new car, go on multiple holidays in my/their retirement having saved during my/their working life for such things, it would be difficult to prove I or anyone had deliberately done these things to avoid IHT.

I/they/their families would have a good case for just living their best life after 50+ years of work…

As far as I know, that wouldn't be considered as avoidance. Putting your house and any assets into some convoluted trust would be. You are free to spend your money on whatever you want while you're alive.

ronib

David49 but I thought you made it quite clear that private education is in some ways a disadvantage .
Pupils need adequate and good teachers - that’s the best head start - and I believe can help disadvantaged children make up some lost ground.

There are plenty of examples of dyslexics and others who have despite their genetic make up have prospered, at the other end of the spectrum those that have masters degrees fall by the wayside and never apply their education usefully.

Of course there are those that are intelligent who apply their talents to break the law, if only we could mentor them early to use the ability usefully.

Growstuff - you wrote that you don’t think your children did anything to get a head start in life. Well how on earth did they become university lecturers might I ask? It seems very disrespectful to your children to undervalue the many years of study and hard work to get to that level.

ronib

growstuff you do sound heavy work as a parent. So glad to hear your children overcame their initial difficulties. Many do. Humans are remarkably resilient.

What difficulties? My children were born to two married parents, who lived in a house which would (if it were sold now) be liable to IHT. Both of us worked, so we had a reasonably comfortable life. It was only when my husband and I divorced that things started falling apart. My children were brought up surrounded by books and I always made an effort to take them to museums, they had music lessons etc. (all paid for with money earned in paid employment). They were also surrounded by people who discussed ideas and had a wide vocabulary and valued hard work. They both went to nursery full-time and state schools. Until recently, none of us ever inherited any money. They didn't have a hard start in life, but I guess they inherited reasonable genes. It's only the past 20 years which have been really hard for me financially. I just smile sweetly (and laugh internally) when people start looking down their noses at me because I know I don't need money to make me feel worthy.

ronib

Growstuff - you wrote that you don’t think your children did anything to get a head start in life. Well how on earth did they become university lecturers might I ask? It seems very disrespectful to your children to undervalue the many years of study and hard work to get to that level.

They're not. Who said they are?

In fact, I haven't a clue what you're going on about.

Maybe you're confusing them with my partner, who does come from a typically working class family and is a university professor.

Growstuff You did.

Growstuff highly skilled professionals?

No, I did not! Why on earth would I claim they are university lecturers when I know they're not. They are both highly educated and well-paid professionals, but they don't work in universities.

ronib

Growstuff highly skilled professionals?

Exactly! That doesn't mean they're university lecturers.

Growstuff okay. Even so your children became highly skilled professionals through their own application and hard work. Like they did something to get a head start in life. Like worked for it.

Growstuff just remembered previously you mentioned senior civil servants…. And that isn’t privileged?

But they're not university lecturers!! (which is what you claimed)

My daughter is a senior civil servant and my son was a housing policy advisor for the Welsh government and now works for a charity (not that it's any of your business or even relevant).

I really don't think you understand what "privileged" means. They haven't inherited any money. At one stage, they even had free school meals. They were brought up to be independent and resilient and not to rely on anybody else. They were appointed to their jobs as a result of their personal qualities, not because they have had any privilege or anything bought with an inheritance.

ronib

Growstuff okay. Even so your children became highly skilled professionals through their own application and hard work. Like they did something to get a head start in life. Like worked for it.

But they weren't born with a headstart.

I have no problem with people who work for their success (or even when success turns sour). I don't have much time for people who start from a privileged position and then claim to have worked for everything they've got - especially those who then think they're so much better than those who didn't start from where they did. If people need an inheritance to be where they are in life, they don't get my respect. Ashes to ashes (and all that) - people can do what they like in the in-between years.

growstuff job well done then. This is a privileged upbringing in my book and well deserved. Even if now in fairly elitist jobs… which I think is great. FWIW one of my children is much more fulfilled away from university lectureship and into scientific research. I had a fun time videoing his latest project and understood not a word of it. The real point is that society should see some benefit from his endeavours sooner or later I hope. So does he. That’s privilege too.

But they weren't born with a headstart

But they were obviously born with a good intelligence, coupled with drive and ambition. Thay gives them a headstart.
I would think they had a headstart too in the psrent stakes, compared to some children whose parents are drug addicts, alcoholics or just living in despair.
Money isn't everything.

Excuse typos!

Headstarts come in various guises.
Money certainly isn't always everything either.

A large inheritance can actually be a burden, particularly an emotional one, for many reasons. It sometimes takes a lifetime of soul-searching and questioning to fathom things out, and even then the responsibility weighs heavily. It also redefines your life, and the privileges and entitlements it buys bring their own issues.
Are there feelings of guilt because a significant inheritance isn't the norm in society? Probably. Would you rather have fitted into mainstream society like everyone else? Possibly. Should you share out your good fortune? Undoubtedly. And so on.
It's complicated because you want to do right by the one who gifted the money, and right by your own offspring, and right by society.
It's sometimes a bit of a piggy in the middle situation with no real answers. People don't often look beyond the pound signs, and the more £s there are, the more questions are thrown up.

I never thought the UK would become a country where bettering oneself and accruing savings are viewed as a revenue stream for the Government on your death as opposed to ensuring your heirs will not become dependent on the state…

What is the point!

GrannyGravy13

I never thought the UK would become a country where bettering oneself and accruing savings are viewed as a revenue stream for the Government on your death as opposed to ensuring your heirs will not become dependent on the state…

What is the point!

Not all younger people are able to afford to buy a property, with rents so high and many do remain single which makes upit even more difficult to purchase on one salary.

If they are fortunate enough to receive a legacy from a parent or relative then that would enable them to get on the housing ladder, give them some security and a cushion so they too will not become dependent on the state, as GrannyGravy13 says.

Of course, they could choose to spend it and blow the lot!

GrannyGravy13

I never thought the UK would become a country where bettering oneself and accruing savings are viewed as a revenue stream for the Government on your death as opposed to ensuring your heirs will not become dependent on the state…

What is the point!

This is logic - seems not highly valued.

I agree that if you continue to better yourself through either hard work, accruing savings, or passing on an inheritance, then you are part of the solution for the Government. Does it matter which way you achieve this?