Bank of mum and dad

Sixty

ADC
Moderator
Book Reviewer
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.
Oh FFS. I can't do a Hollywood stylee 'you must adhere to my mad conditions for the rest of your days if you want continual cash!' type deal?

Damn you, Brewster's Millions
 

Ravers

LE
Kit Reviewer
Book Reviewer
Of course if you win the Euromillions when you're in your 70s, I'd suggest setting up a business and making your kids directors. Put as much stuff as you can into the business, i.e property, artwork etc.

Businesses are taxed differently.

For example, if you own a large country house full of priceless artwork, a hotel would be a good idea. Everything you own could become assets of the hotel business. Any spare properties you own could become staff accommodation. The artwork would become part of the hotel.

So I'm told.
 
IIRC theres no inheritance tax due on woodland / forestry ?
 
Of course if you win the Euromillions when you're in your 70s, I'd suggest setting up a business and making your kids directors. Put as much stuff as you can into the business, i.e property, artwork etc.

Businesses are taxed differently.

For example, if you own a large country house full of priceless artwork, a hotel would be a good idea. Everything you own could become assets of the hotel business. Any spare properties you own could become staff accommodation. The artwork would become part of the hotel.

So I'm told.
So that would make it a share transfer then?
 

overopensights

ADC
Book Reviewer
If you're able to take the longer view: pay as much as you can into a pension, such payments are also free of income tax. Then, when you're old you will have a better income and consume less of their inheritance (especially if you die early!)
I once heard of a pension fund that paid back almost as much as one paid in!
 

Ravers

LE
Kit Reviewer
Book Reviewer
I`m in line for some :)
Off thread, but a good dit.

Bloke up here owns a very big forestry products business. What he doesn't know about wood isn't worth knowing.

Anyway he's a mate, drinks in our pub etc etc.

Another mate was looking at buying a house. Wood bloke helped him out.

Anyway long story short, matey boy spent 300 grand on a house, but it had 100 grands worth of oak in the garden which he immediately felled and sold to wood bloke.

Win.
 

lecky

War Hero
Any ideas on how you stop the local gov getting their hands on your property, to pay for your keep in the old peoples home, if Alzheimer's or something takes hold and you're on your Jack?
I've heard Power of attorney + add other names to land register for the property was a way of blocking that, once the savings had been whittled away down to about £15K...........but that was from a mate who is a second generation Russian and keeps a pair of goats as pets!!:confused:
 
When I started breeding, most of the spare dosh went on kids education, family trips skiing , sailing, anything adventuorous.
As they got older it went on education, their own adventures, clothing and other kit to help comfortably survive those adventures.
They have both turned out pretty good people.
I now look forward to spending any spare dosh on grandchildren.
Education, adventures etc.
Their parents can decide when mobile phones, tablets are appropriate. And buy them.
 

corby

Old-Salt
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.
My mom died in July and I'm sorting out the estate. My dad died back in 1985 so can I claim £650K or £325K before IHT?
 

corby

Old-Salt
Any ideas on how you stop the local gov getting their hands on your property, to pay for your keep in the old peoples home, if Alzheimer's or something takes hold and you're on your Jack?
I've heard Power of attorney + add other names to land register for the property was a way of blocking that, once the savings had been whittled away down to about £15K...........but that was from a mate who is a second generation Russian and keeps a pair of goats as pets!!:confused:
I had POA (financial and property) over my moms affairs and I was told by the solicitor that it is the way to stop the issue of the elderly being forced to sell their homes. If I remember correctly, you need to deal with a solicitor for POA so make sure you get the right advice from them anyway.

Just to add, I also had POA for Health and Wellbeing so it might have been covered in that aspect and not Financial. Get professional advice.
 

Drivers_lag

On ROPS
On ROPs
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'.
Because that's earnings and you have to pay tax on them.
 
One piece of advice from solicitors I have had recently is to only grant money/inhertitance to kids once they have reached the age of 25.
By this point they are more likely to be in employment, own expensive items (cars, accomodation etc.) know the value of money and less likely to blow it all on stupid things.
Handing over large sums to an 18 or 21 year old is pretty silly these days I think.
 
My mom died in July and I'm sorting out the estate. My dad died back in 1985 so can I claim £650K or £325K before IHT?
I had to do much the same recently, best bet is to look up the advice given by the Probate Service, can't remember the exact details but Google will lead you to the right place.

Re the IHT there are specific rules on carrying forward IHT allowances, in our case we could carry forward the unused portion of my father's IHT allowance and add it to my mother's again the Probate Svc gives the guidance needed, they also have a very useful telephone help line.

If the estate is not too complex I would avoid using a solicitor to do the executor/letters of administration work as they can be expensive, most of the paperwork is tedious but not complex.
 
Any ideas on how you stop the local gov getting their hands on your property, to pay for your keep in the old peoples home, if Alzheimer's or something takes hold and you're on your Jack?
I've heard Power of attorney + add other names to land register for the property was a way of blocking that, once the savings had been whittled away down to about £15K...........but that was from a mate who is a second generation Russian and keeps a pair of goats as pets!!:confused:
About 7 years ago we created a Family Trust into which our house and some other assets were enclosed ... we no longer own these assets ... the Trust does .
 
About 7 years ago we created a Family Trust into which our house and some other assets were enclosed ... we no longer own these assets ... the Trust does .
I was advised (by the Army) to do similar with my compensation, but as my IFA pointed out it gains virtually no interest, so in real terms depreciates in value.
 

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