IHT- how to avoid if you have enough wealth

Faierynan

MaizieD. Not understanding "I see no reason why the state should not take back a portion of the money that it issued in the first place". Nobody issued any money to us we went out and earned it and paid tax on it. It is ours to do with as we see fit!

Where do you think that money comes from in the first place?

Who has the only right to issue money?

Faierynan

MaizieD. Not understanding "I see no reason why the state should not take back a portion of the money that it issued in the first place". Nobody issued any money to us we went out and earned it and paid tax on it. It is ours to do with as we see fit!

I'm afraid that's not how an economy works. You have the right to do what you want with it while you're alive. All wealth ultimately belongs collectively to the state. States decide how it is distributed through taxation.

Allira

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!

That's drivel! They can do what those who don't have an inheritance do. They don't need a £million to buy a property anyway. And moreover, there are many people without their names on property deeds who aren't dependent on the state.

MaizieD. Not understanding "I see no reason why the state should not take back a portion of the money that it issued in the first place". Nobody issued any money to us we went out and earned it and paid tax on it. It is ours to do with as we see fit!

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!

It's absolute nonsense to claim that heirs become dependent on the state if they don't receive an inheritance. They can do what the majority of the population does and earn their own money without an inheritance.

MaizieD I can assure you I am no where near hysterical.

I am however vehemently opposed to the level IHT kicks in and the 40% rate that is imposed.

You are definitely wrong with

your heirs have done nothing to earn themselves

The way IHT is collected is punitive, it’s already been posted up thread in detail.

Dinahmo

Allira

M0nica the general taxation system should be such that we can afford to educate our young, look after the health of the nation and maintain our public services without robbing graves.

It's a choice - higher taxes whilst you are alive and lower taxes on your estate, borne by you beneficiaries or visa versa. I know which I would prefer.

Me too and it's not IHT.

Allira

M0nica the general taxation system should be such that we can afford to educate our young, look after the health of the nation and maintain our public services without robbing graves.

It's a choice - higher taxes whilst you are alive and lower taxes on your estate, borne by you beneficiaries or visa versa. I know which I would prefer.

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!

I think you're becoming a trifle hysterical about this here.

We're not talking about the state confiscating the whole of the whole of what has accrued over your lifetime. There is a sum which is not subject to taxation and after that there is 60% left to your heirs of whatever remains.

As this has been frequently pointed out, this is wealth that your heirs have done nothing to earn themselves and which can no longer be of any benefit to you. I see no reason why the state should not take back a portion of the money that it issued in the first place.

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?

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.

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!

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!

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.

Excuse typos!

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.

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.

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.

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.

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

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.

ronib

Growstuff highly skilled professionals?

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

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.

Growstuff highly skilled professionals?

Growstuff You did.