Bank of mum and dad

Auld-Yin

ADC
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Sod the kids - just go ski-ing*

Enjoy life, but remember, the kids will be choosing your old folks home!





ski-ing = Spending the Kids Inheritance
 
Possibly 200K

Archie
Gift and live for 7 years or pay somebody to set up a trust fund.

I was on the training end of a slightly larger amount. My old man ummed and arred for ages then did it and panicked he wouldn't last the seven years.

Do it sooner rather than later but make sure your kids are aware there's a potential of a tax bill so make their dispositions accordingly.
 
7 years can be a long time

Archie
If you die within a year it's full tax. A year after, a little bit less, a year after that a little less than that etc etc etc.

You can go down the trust funding route but they cost to set up and are a pain on the arse if you're on the receiving end.
 
Sod the kids - just go ski-ing*

Enjoy life, but remember, the kids will be choosing your old folks home!





ski-ing = Spending the Kids Inheritance
My old girl has a lovely Mini Cooper(the new shape!) its a inheritance right off..........................even when she gets to a old peoples home she will be buying a top range car........................
I love driving second hand cars I don't want ;)
 

Ravers

LE
Kit Reviewer
Book Reviewer
7 years can be a long time

Archie
In that case, buy 200 grand's worth of agricultural land or a really small, shitty farm in Scotland. Make sure it is pukka agricultural land and someone actually farms it. Rent it back to the farmer to make it work best for you.

Give that to the kids instead of money.

When you die, there will be zero inheritance tax to pay.

That'll be 10 grand please (5% is fair, I've just saved your kids thousands).



Or just don't worry about it at all. The inheritance tax threshold is 325 grand. So anything under is not subject to tax. ;)
 

anglo

LE
I 've wondered about something like that. What's to prevent me invoicing my son for raking the lawn at £10k a pop, or some other inflated form of money exchange so I get money into his savings that isn't seen as a 'gift' but is for 'services rendered'.
Your son would probably get done for racketeering
 
If you die within a year it's full tax. A year after, a little bit less, a year after that a little less than that etc etc etc.

You can go down the trust funding route but they cost to set up and are a pain on the arse if you're on the receiving end.
Not via life assurance and insurance company. IFA sorts it all out not a solicitor.
 

Gout Man

LE
Book Reviewer
In that case, buy 200 grand's worth of agricultural land or a really small, shitty farm in Scotland. Make sure it is pukka agricultural land and someone actually farms it. Rent it back to the farmer to make it work best for you.

Give that to the kids instead of money.

When you die, there will be zero inheritance tax to pay.

That'll be 10 grand please (5% is fair, I've just saved your kids thousands).



Or just don't worry about it at all. The inheritance tax threshold is 325 grand. So anything under is not subject to tax. ;)
It's all change and for the better.
The sooner inheritance tax is abolished all together the better.

Inheritance tax: what is the limit and how has it changed?
 
What if they turn out to be little *****?

In all seriousness I know a few people who have set up fat trust funds for their brats, put their life savings into it, then at 18 the kids have blitzed it all on weed, a suped up Golf GTI and 6 weeks in Pattaya. Legally the money is their's and there is nothing you can do about it.

Most of my wife's older brothers and sisters did exactly that.

Of course no one hopes their kids will behave like that, but I'd consider keeping some of the cash back so you have some control.

We've set up child trust funds for our two, once the funds reach 10 grand, we're not putting anything else in. We'll set up ISAs in our names instead and pay into that.

On their 18th birthdays the kids will be presented with a choice.

Here's 10 grand, you can:

A) Blitz the lot and have some fun for a few months.
B) Spend it on something worthwhile and we'll double it.
Hold the money in trust for the benefit of the child, that means decisions on how it's spent can be considered before money is spent.
 

Ravers

LE
Kit Reviewer
Book Reviewer
Hold the money in trust for the benefit of the child, that means decisions on how it's spent can be considered before money is spent.
I prefer my plan. It teaches them a valuable lesson and I retain control over the bulk of the cash.
 
Unless they are mature, switchd on and in a stable relationship set up a trust fund , this will stop them and gold digging girlfriends and bellend boyfriends from blowing it .
 
In that case, buy 200 grand's worth of agricultural land or a really small, shitty farm in Scotland. Make sure it is pukka agricultural land and someone actually farms it. Rent it back to the farmer to make it work best for you.

Give that to the kids instead of money.

When you die, there will be zero inheritance tax to pay.

That'll be 10 grand please (5% is fair, I've just saved your kids thousands).



Or just don't worry about it at all. The inheritance tax threshold is 325 grand. So anything under is not subject to tax. ;)
Is the £325k allowance per beneficiary or based on the total value of the estate?
 

Ravers

LE
Kit Reviewer
Book Reviewer
Unless they are mature, switchd on and in a stable relationship set up a trust fund , this will stop them and gold digging girlfriends and bellend boyfriends from blowing it .
A trust fund is just a savings account that they can only access after their 18th or 21st birthday.

They can do whatever the **** they want with the cash.
 
A trust fund is just a savings account that they can only access after their 18th or 21st birthday.

They can do whatever the **** they want with the cash.
I`m pretty sure terms can be written in to protect the cash until any age.
 

Ravers

LE
Kit Reviewer
Book Reviewer
Is the £325k allowance per beneficiary or based on the total value of the estate?
Total estate, but it's double if you're married.

As pointed out above its changing after April to 500k or £1million if you're married.

So you and your missus can leave £650 grand's (or a million after April) worth of stuff (including the main family home) to your kids before incurring any tax.

Any assets over and above that need to be dolled out at least 7 years before you die.

Simple.
 

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