Inheritance Tax

[Deleted member 28]

You do know that it is almost impossible now for kids to get on to the property ladder?

So both your kids are going to live at home until you and your wife snuff it and live happily ever after in your 3 bed semi with their own families?

 

[Deleted member 28]

You see, I'm not sure that when I retire I want to move somewhere where I have no friends or family, don't know the area etc.
I like my local amdram society, the band that I play in, my cycle group etc. I don't want to start again with everything when I reach mid 60s.
I like the area that I live in. My in laws live down the road. My children will probably settle around here etc.

Why would you have to? I assume you earn enough to provide yourself with a decent pension when you retire so you can stay put until the old reaper comes knocking and the then grown up kids that should be doing well and if not you've spunked all that money on private education for nothing, will have a tidy lump coming their way.

Good job done I reckon.

 

[matticus]

You do know that it is almost impossible now for kids to get on to the property ladder?

As already discussed, that is a crazy sweeping statement....
However, if we just look at the kidz in expensive areas where they (not all kidz) can't afford property; the reason is almost entirely that the home-owners in YOUR generation have used property as an investment, many buy-to-letting (plus holiday homes etc). And of course buying property for their young children (which often includes student accomodation)!

Have you done anything to solve house price inflation in your area? To encourage social housing?

And did you not see this coming when you bought a house in Surrey?

 

[icowden]

So both your kids are going to live at home until you and your wife snuff it and live happily ever after in your 3 bed semi with their own families?

Possibly. It depends when me and my wife snuff it doesn't it? There is this happy assumption that everyone will live into their 80s. I happen to know from experience that that isn't always the case. My father died when he was 44. In the event that the worst did happen, I happen to think it would be nice for the kids to be able to remain in their home rather than selling it to give the Government their pound of flesh just because I live in Surrey and not Norfolk.

 

[Deleted member 28]

Possibly. It depends when me and my wife snuff it doesn't it? There is this happy assumption that everyone will live into their 80s. I happen to know from experience that that isn't always the case. My father died when he was 44. In the event that the worst did happen, I happen to think it would be nice for the kids to be able to remain in their home rather than selling it to give the Government their pound of flesh just because I live in Surrey and not Norfolk.

Hopefully you won't die that young, my Dad was 49 when he died but I'd left home already and my Mother lived to 78 so again probably not very likely both parents are going to die while the kids are still living at home.

Hasn't someone already pointed out you can inherit around a Million jointly so unless your house is that valuable I'm guessing they're safe.

 

[Bromptonaut]

Hopefully you won't die that young, my Dad was 49 when he died but I'd left home already and my Mother lived to 78 so again probably not very likely both parents are going to die while the kids are still living at home.

Hasn't someone already pointed out you can inherit around a Million jointly so unless your house is that valuable I'm guessing they're safe.

Although IHT kicks in at around £350k there are higher limits, approaching the £1million quoted, where residential property passing directly to children is concerned. There are also things that can be done, with no more than sensible use of wills etc, to ensure the allowances that are available are efficiently utilised.

Advice may be needed but the sort you largely can get from books and the web. few hundred in legal fees to tie it down and the job's a good 'un.

I suspect the biggest trap is people who are in long term 'common law' relationships who lack the facility to pass stuff between then entirely free of IHT.

 

[Deleted member 28]

Although IHT kicks in at around £350k there are higher limits, approaching the £1million quoted, where residential property passing directly to children is concerned. There are also things that can be done, with no more than sensible use of wills etc, to ensure the allowances that are available are efficiently utilised.

Advice may be needed but the sort you largely can get from books and the web. few hundred in legal fees to tie it down and the job's a good 'un.

I suspect the biggest trap is people who are in long term 'common law' relationships who lack the facility to pass stuff between then entirely free of IHT.

I think someone needs to do their homework then, I doubt @icowden is 'living over the brush' so it shouldn't be too difficult for him to leave his entire pile to his little cherubs should him and his missus meet an untimely end.

 

[BoldonLad]

I think someone needs to do their homework then, I doubt @icowden is 'living over the brush' so it shouldn't be too difficult for him to leave his entire pile to his little cherubs should him and his missus meet an untimely end.

No need for any complex IHT manoeuvres if you live in South Tyneside. https://www.rightmove.co.uk/properties/135439946#/?channel=RES_BUY

We even have BOGOFF offers https://www.rightmove.co.uk/properties/133611713#/?channel=RES_BUY, and, that is in the posh end

 

[AuroraSaab]

That second property is lovely. Some nice affordable areas in the NE if you live there already or are prepared to move. I like the area round Durham and out towards Whitley Bay a lot.

 

[icowden]

No need for any complex IHT manoeuvres if you live in South Tyneside. https://www.rightmove.co.uk/properties/135439946#/?channel=RES_BUY
We even have BOGOFF offers https://www.rightmove.co.uk/properties/133611713#/?channel=RES_BUY, and, that is in the posh end

Whereas in my area, the only property you can get for that money which isn't a flat is a 1 up 1 down:-
https://www.rightmove.co.uk/properties/133245107#/?channel=RES_BUY

 

[winjim]

Yes, buying two properties at once and developing them is really going to help with house price inflation.

 

[icowden]

Hasn't someone already pointed out you can inherit around a Million jointly so unless your house is that valuable I'm guessing they're safe.

Probably. It's quite a strict rule. One spouse has to leave their estate to the other spouse who then has to leave the estate to the children. If both parents die in the same accident it doesn't apply for example.

 

[BoldonLad]

Yes, buying two properties at once and developing them is really going to help with house price inflation.

I didn't read the ad fully, since I am not in the market, but, I doubt it is compulsory to turn it into one house. Actually, I think, it may be a Conservation area, so, there may be limits on what can be changed.

 

[BoldonLad]

Probably. It's quite a strict rule. One spouse has to leave their estate to the other spouse who then has to leave the estate to the children. If both parents die in the same accident it doesn't apply for example.

Travel seperately from now on, just in case.

 

[BoldonLad]

Whereas in my area, the only property you can get for that money which isn't a flat is a 1 up 1 down:-
https://www.rightmove.co.uk/properties/133245107#/?channel=RES_BUY

I get that, one of my offspring lives in Windsor, his house is not drastically different to ours, but, "worth" about 3 times as much.