Investment Ideas

[lukemg]

Defo one for a professional this. As mentioned - IHT is the big one, think its 325 or 650k if you have inherited from a spouse.

Lots of ways round it though e.g. transferring to a trust that is still controlled by him but out of IHT.

He can give 3k + multiple £250 gifts, more for weddings.

Anything larger and he has to live 7 years (although it does reduce on sliding scale).

Realistically, return is of minimal importance at his age it should ALL be about preserving capital and some return but ZERO risk and I would be worried if any IFA suggested anything else. So we are talking 1, 3 and possibly 5 year bonds (so the money is back available periodically if needed). Spread it round a bit, Post Office, banks etc so not over 85k at any one place.
ANY stock market investment should be considered a 5 yr minimum, even a tracker.
IFA won’t get much commission from recommending these options and might push you at riskier funds.
In short – IHT and zero risk investments are my advice.

[Lockhouse]

Defo one for a professional this. As mentioned - IHT is the big one, think its 325 or 650k if you have inherited from a spouse.

Lots of ways round it though e.g. transferring to a trust that is still controlled by him but out of IHT.

He can give 3k + multiple £250 gifts, more for weddings.

Anything larger and he has to live 7 years (although it does reduce on sliding scale).

Realistically, return is of minimal importance at his age it should ALL be about preserving capital and some return but ZERO risk and I would be worried if any IFA suggested anything else. So we are talking 1, 3 and possibly 5 year bonds (so the money is back available periodically if needed). Spread it round a bit, Post Office, banks etc so not over 85k at any one place.
ANY stock market investment should be considered a 5 yr minimum, even a tracker.
IFA won’t get much commission from recommending these options and might push you at riskier funds.
In short – IHT and zero risk investments are my advice.

Cheers. The other thing he can do is actually give the money away if it doesn't affect his material wealth - Gifts out of income are exempt from IHT. You have to make a note of it for HMRC purposes to show after he's popped his clogs but it's actually free of tax. Not a lot of people are are aware of that.

[lukemg]

Good shout that and fairly easy to prove if his expenses are fairly low and got pension to cover them. He needs to think more about where the money is going next than how much is left....