IHT- how to avoid if you have enough wealth

LOUISA1523

Witzend

One thing we’re doing legally, is putting a fair bit of cash into S&S ISAs for the Gdcs. They will have access at 18, which is slightly worrying - eldest is now 9, dh and I will be 84 and 85.

So in case we’re gone by then, TBH not unlikely, I shall be leaving letters pleading with them not to blow the lot!

Can you change the access age to 21? At 18 very likely to be blown on having a good time 😊
My aunty left my 3 3k each at 18.....it was gone on the blink of an eye 🙄

Unfortunately, you can’t.

I won’t mind if they blow a bit of it, on e.g. a holiday, but I will point out that it’s an awful lot easier to spend money than to earn or save it, and one day they may well want the deposit for a house or flat. So since they’re not very likely to be given such windfalls again for quite a long time, it might be sensible to save most of it.

Norah

Doodledog

They can. We haven't had any family money either. But it is much easier if people do get it.

If it weren't, why do people feel so strongly about IHT?

Full circle.

Taxes have already been paid on our saved money.

Raise income taxes - faster, nobody has to die first, easy, fair.

But income tax is only charged to those with an income - ie those who work. Those who don't get a free ride, and that may be easy, but it's not fair, IMO.

I see no moral high ground in whether you inherit money or not. It is luck of the draw. Few people have any say in whether they get an inheritance or not.

With so many people of our generation owning houses and the majority never needing to pay for care, it is inevitable that quite a lot of people will inherit money one way or another.

No, I don't think it's connected to morality either, and there is no high ground to be had. I don't think anyone is saying that, though.

Doodledog

Norah

Doodledog

They can. We haven't had any family money either. But it is much easier if people do get it.

If it weren't, why do people feel so strongly about IHT?

Full circle.

Taxes have already been paid on our saved money.

Raise income taxes - faster, nobody has to die first, easy, fair.

But income tax is only charged to those with an income - ie those who work. Those who don't get a free ride, and that may be easy, but it's not fair, IMO.

As a sahm I opened myself up to that response.

I knew when I answered

Other than me not paying on not earning, we've paid the same myriad of taxes as everyone else. As everyone we pay a lot of taxes.

Income tax could be addressed - family tax total for all family income or individual tax per person. Income tax must go up for higher earners and the personal allowance must go up as well.

I don't see IHT as a way forward to solve government budget issues. I could think positively if threshold was £5,000,000, rate was 60%.

I don't think rises to IHT would solve all the budget issues. I don't know what would - not one thing, anyway. But it would help as part of a package. How many people would pay if the rate were £5m? Not many, if only 4% pay at £1m, I'm guessing.

And as I hope you know, I wasn't being personal. It's just that income tax is not the fairest way to pay, as it excludes so many, and penalises those who provide goods and services as well as paying tax and NI. I don't know about a family tax - maybe it would work. I agree about rises to the personal allowance and to the additional rate of tax.

Doodledog

I don't think rises to IHT would solve all the budget issues. I don't know what would - not one thing, anyway. But it would help as part of a package. How many people would pay if the rate were £5m? Not many, if only 4% pay at £1m, I'm guessing.

And as I hope you know, I wasn't being personal. It's just that income tax is not the fairest way to pay, as it excludes so many, and penalises those who provide goods and services as well as paying tax and NI. I don't know about a family tax - maybe it would work. I agree about rises to the personal allowance and to the additional rate of tax.

I don't believe one thing will solve the budget issues.

I think there needs to be a complete overhaul of all taxes.

I knew you weren't being personal. Sahm is a funny old topic, many of our mums were, a few still are - divisive at best! I'm grownup, can take on what people post, I can hold my own ground as well.

I knew you weren't being personal. Sahm is a funny old topic, many of our mums were, a few still are - divisive at best! I'm grownup, can take on what people post, I can hold my own ground as well.

Norah from what I understand from what you've posted previously, you may not have gone out to work but you've certainly pulled your weight in supporting your husband's business by doing admin tasks, so it's not as if you've "never worked" and spent all your time at the nail bar (or wherever) 😏

V3ra

^I knew you weren't being personal. Sahm is a funny old topic, many of our mums were, a few still are - divisive at best! I'm grownup, can take on what people post, I can hold my own ground as well.^

Norah from what I understand from what you've posted previously, you may not have gone out to work but you've certainly pulled your weight in supporting your husband's business by doing admin tasks, so it's not as if you've "never worked" and spent all your time at the nail bar (or wherever) 😏

I've done all the book work / readying for accounting and bids. No earnings to pay taxes, no set hours. He earns and pays taxes.

Most important, to us, I could and did all the hours of school runs - we're in the fens, our daughters and GC were/are in school 45 minutes to hour drive.

Living in the fens is not living in a village or town. No nail bars.

I'm aware people want others to be similar to them, not all are.

My first wife never worked after the first child was born, she did my business admin and raised 3 lovely daughters. My second wife is the opposite always worked - nursing, had 4 children, paid for childcare, still works at 65.

Whatever you choose is OK

Dinahmo

Maddyone - not meaning to rain on your parade but the Galapagos Islands are now suffering from over tourism.

I think that’s exactly what you are doing.
Never mind, we’re having a wonderful time.

Everywhere is suffering from over tourism, places concerned must set boundaries before they lose them. The amount if ships out there all doing same itineraries have made me think twice about booking as I feel a bit guilty about it all.

Galapagos is very expensive to visit, they do ration access and have banned large cruise ships, overcrowded, NO definitely not. No high rise, many visitors stay on small boats, under 20 passengers and travel from island to island by sea.

If you do stay on land roads are almost empty, the wild life is hardly impacted, but visitors make a big contribution to the cost of keeping it that way.

Exactly David49.
Normally people who make disparaging comments don’t know what they’re talking about. I’m really impressed with what I’ve learnt whilst I’m here about conservative and the efforts to keep the whole area pollution free.
So yes, to celebrate our Gilden Wedding we decided to spend some of our money on a special holiday. I can thoroughly recommend it, and since it ensures the taxman won’t get his hands on the money we’ve spent, it’s a double plus for me.

What is the weather like Maddyone ?

Let us know what you see maddyone 🙂

David49

My first wife never worked after the first child was born, she did my business admin and raised 3 lovely daughters. My second wife is the opposite always worked - nursing, had 4 children, paid for childcare, still works at 65.

Whatever you choose is OK

Of course whatever you choose is ok. It is not ok to expect others to fund your choices though. If only one of a couple pays in, but two take out (in the form of healthcare, education, use of facilities, protection from the police, armed forces etc etc) who is expected to pay for the other? Those who do work, and are already covering their own contributions? The paying one will be covering his or her own dues, not those of the non-paying partner.

Have a fabulous time, maddie.

Doodledog just like to point out that my husband couldn’t wait to get to work for a rest. There’s a great myth about being a stay at home parent. It’s very hard work.

ronib

Doodledog just like to point out that my husband couldn’t wait to get to work for a rest. There’s a great myth about being a stay at home parent. It’s very hard work.

Yes, working parents do the same things (run the house, bring up children) but do a full-time job on top . Looking after babies is one thing, but when they are at school, it is very different.

Most working parents take maternity leave, so do a lot of the baby care (I loved it, and didn't find it anywhere near as hard as work), and many work part-time until their children go to school at four, maybe when they are at nursery or playgroup. Others stay at home for the first four years, which still means they can work for long enough to pay for a full pension.

Anyway, I'm not talking about how hard it is, I'm talking about who pays for it. Many people who say they have worked hard for what they have, including for the money gained by their house prices, have actually had public money in the form of high levels of MIRAS to offset their mortgages, and in some cases decades of NI credits so they can be at home all day in an empty house.

A bit harsh maybe Doodledog each family unit has its own particular set of problems. There needs to be some freedom left to plan family life. NI credits for being a housekeeper? People are actually paid to run a house for the elderly- it’s a job. The working partner should have less stress as the non working person usually does most of the physical work and planning.

Doodledog Yes, working parents do the same things (run the house, bring up children) but do a full-time job on top grin. Looking after babies is one thing, but when they are at school, it is very different.

Most working parents take maternity leave, so do a lot of the baby care (I loved it, and didn't find it anywhere near as hard as work), and many work part-time until their children go to school at four, maybe when they are at nursery or playgroup. Others stay at home for the first four years, which still means they can work for long enough to pay for a full pension.

A woman may have many pregnancies to recover from yielding only 4 live births - just saying there is no one size fits all in family size, years at home.

I understand the argument from many aspects. I'm out.

maddyone

Exactly David49.
Normally people who make disparaging comments don’t know what they’re talking about. I’m really impressed with what I’ve learnt whilst I’m here about conservative and the efforts to keep the whole area pollution free.
So yes, to celebrate our Gilden Wedding we decided to spend some of our money on a special holiday. I can thoroughly recommend it, and since it ensures the taxman won’t get his hands on the money we’ve spent, it’s a double plus for me.

You would normally add Galapagos to an Equador or Peru trip, the capital is Puerto Auroya, a lovely seaside town, good restaurants and harbour, the centre for diving and snorkeling Best of all is Isabella Island, my idea of paradise, pelicans and sealions fishing empty beaches. The wildlife you won’t see anywhere else, a unique experience I feel very lucky to have been.

Not all on GN or not, enjoyed the benefit of MIRAS. We had it for a few years from 1995

^In 1994 the rate of relief was reduced by Kenneth Clarke, with further reductions in 1995 and 1997. MIRAS was completely abolished in April 2000 by Gordon Brown, who argued it had become a middle class perk.

I knew someone would say that, which is why I said many had enjoyed high levels of it - it was gradually reduced before it disappeared altogether.

Does everything have to be a dig at Labour governments old and new?

Does everything have to be a dig at Labour governments old and new?

I mentioned Kenneth Clarke, who was a Conservative, just in case you weren’t aware. I’m happy to share the blame where it applies to both.

I have never condoned some of the actions of the previous government, and I don’t understand the need to protect the current one from well deserved criticism.