Inheritance tax

[milliezoe]

I talked with my son at the weekend and we plan to sell him my bungalow and we will continue to live here and pay him a nominal rent I do not want my hard earned assets going to pay for my care home and punitive taxes on my death.
My question is am I doing the right thing ?

[joggerjayne]

If you pay him a "nominal rent" the HMRC will treat you as having a "retained benefit", and your estate will still be taxed to IHT.

(yes, IHT is really fair, isn't it !!)

To escape IHT, you must pay him a "full market rent".

[redcrx]

and what if the only goverment funded care home place (should you need one) is miles from family or is far from nice.

Or your son loses the property?

[annie0000]

So who do you think should pay for your care home?

[funnygirl]

Can't win can you!?

I thought the pla milliezoe had was workable.

I begrudge leaving my hard earned dosh to the government.

[milliezoe]

Annieoo The government can pay I have paid into the system for nearly fifty years and there is no way the sharks in the government are getting my hard earned assets

[joggerjayne]

Good for you, Doc x

[Sqad]

milliezoe....the "Government" is US, taxpayers.

Why should the taxpayer subside your retirement when you assets exceed most of the taxpayers?

[bednobs]

So how much have you been paying into the system for 50 years then?
Equivalent of £600-1000 per week was it? Declined to go to school, or send your son to school? declined any healthcare including gp? never visted any museums or galleries, or took out a library book? never got any benefits or pension? If so then congratulations, you've paid in what you expect to take out!

[bednobs]

And if you are selling him the bungalow, you will have loads of money the government can use to pay for your care!

[redcrx]

its all well and good saying that youve paid in so they can pay out. But what if all they can afford is a run down drafty care home that stinks of pee, and has staff that really couldnt care less about residents because they dont get paid enough.

Given the choice wouldnt you want a say about where you go?

[Sqad]

red,,LOL

[milliezoe]

bednobs I funded my son through a law degree which was expensive let me tell you I have never had a penny from the state and will after paying in to the system for so long not give them a brass farthing ( rant over )

[annie0000]

milliezoe - the moey you paid in went to pay for the care of the people in homes at the time you paid it. So it's the people (like your son) paying tax when you are in a home that will be paying for it - like it or lump it, the money you paid in is long gone as that is the way the system has always worked.

I'm not saying it is fair, but the only way to ensure you have the benefit of your cash is to spend it yourself and take your chances on what's available when you are old, or keep it and use it for your comfort in your old age.

I have worked myself for 26 years and have probably another 23 years to work before I will be entitled to any state pension - probably more than that by then and I believe that by that point becasue I will have saved towrds my own pension, I will probably get nothing at all. Not much i can do about it other than consider myself lucky that I have stayed in employment and raised my family and lived in a nice home.

[Sqad]

doc...my sentiments entirely....let each generation look after itself.