Inheritance tax

[ASB]

"deliberate deprivation".

My grandmother was a housekeeper. After the chap dies she inherited a life interest. All during this time she had no real need for any of the income or her pension; So she gave it away - or at least a fair chunk of it. She did this for a large number of years, it was 100 quid at birthdays etc.

Anyway as she aged my parents got power of attorney and carried on doing the above. By the time she went into long term care she had a reasonably tidy sum tucked away so my parents paid her bills from her money. Then of course it got down to the 18k (or similar) threshold where the local authority start to stump up.

Deliberate deprivation reared it's head and they disallowed an amount equivalent to what my parents had disperesd - only keeping the tradition the lady herself had maintained for at least 30 years.

[Mailman]

Of course you can give it to your kids, if you want, and don't mine them buggering off with it (as some will certainly do).

And that should be my right...a right also free of tax implications. If I work hard all my life to ensure my children will be looked after when I am gone then that is how it should be. The government should not get 40% of my estate (above the start rate of course) simply because Im impersonating a dodo!

But I was referring here to the sort of capital that the average reader is going to have. Someone with a 500K house, who gives the capital away early so as to avoid the 7 year rule, may just find that they need it back in 10 or 20 years time.

tim

Problem is, cause old gordo hasnt kept pace with everything thats going up all the time your average *** in London will easily fall within the IHT bands when he karks it.

People shouldnt have to enter in to complicated tax avoidance schemes, give money away over x years or what have you. This is a simple area that the government has f8cked up simply so they can get more and more money from people.

I wonder though, why arent you so called businessmen up in arms as much over IHT as you are over IR35. After all, you contractors must all have empires worth at the very least £400k!

Mailman

[Mailman]

If we can't say "******" how come "***" gets through?

Because there is nothing wrong with saying *** when the use of the w0rd *** is called for...like when referring to **** as ***. If you called a *** anything else then that would be inaccurate as a *** is a *** is a *** and nothing else!

Mailman

[rootsnall]

Deliberate deprivation reared it's head and they disallowed an amount equivalent to what my parents had disperesd - only keeping the tradition the lady herself had maintained for at least 30 years.

I thought for care home purposes ( not CGT ) they only looked back 6 months to see if money had been given away. I think this might be local authority run so probably varies with where you live.

I am managing my 90odd year old Grandads dosh and read up on this a while back, maybe things have changed ?

[ASB]

I thought for care home purposes ( not CGT ) they only looked back 6 months to see if money had been given away. I think this might be local authority run so probably varies with where you live.

I am managing my 90odd year old Grandads dosh and read up on this a while back, maybe things have changed ?

It is a local authority run home. I don't really know all the details apart from the fact a couple of grand was added back onto grannys dosh for the purpose of charging. Most of the problem is that the authority make a decision and then you have to challenge it. They are very good at stonewalling, when geographically there is a 300 mile seperation between the two disputing parties it's pretty easy to see why one of them without the benefit of all the ratepayers money might give up.

By damn careful how you spend Gramps money because it's you it will come back to haunt.

[rootsnall]

It is a local authority run home. I don't really know all the details apart from the fact a couple of grand was added back onto grannys dosh for the purpose of charging. Most of the problem is that the authority make a decision and then you have to challenge it. They are very good at stonewalling, when geographically there is a 300 mile seperation between the two disputing parties it's pretty easy to see why one of them without the benefit of all the ratepayers money might give up.

By damn careful how you spend Gramps money because it's you it will come back to haunt.

Don't worry if its in my name it won't be spent, he's given me the OK to move it out of his name. Trouble is once I move it the interest/dividends will be taxed at 40%. His home will still be up for grabs and probably more than would be required if he is unlucky enough to end up in a home.

[glashIFA@Paramount]

I thought for care home purposes ( not CGT ) they only looked back 6 months to see if money had been given away. I think this might be local authority run so probably varies with where you live.

I am managing my 90odd year old Grandads dosh and read up on this a while back, maybe things have changed ?

Local authorities can look back as far as 1948!!!! National Assistance Act. Depends on how much they have in funds and that's always nothing.

Plenty of cases been through the courts where this has happened unfortunately.

[administrator]

Hi People,

Nuff of the racist name calling. Cease and desist.

I am shining up the banning stick as we speak, don't make me shake it.

Ta

[Mailman]

Since when has *** been a racist term?

You poms...actually...is the word pom a racist word?

Mailman

[expat]

Since when has *** been a racist term?

You poms...actually...is the word pom a racist word?

Mailman

Yes, Oh round flightless one.