Inheritance Tax Update

[nelliebee]

To all of you who were interested im my dilemma last week, I have seen my financial advisor today, and it has been suggested that I could put the property I own (but do not live in) in to a trust fund for members of my family and the monthly rent would go in to the trust account, (this would build up nicely over the years ) and as you would expect the trust would pay for all repairs etc to the property. This would be a way of reducing my assets and hopefully the government would get less should I pop my cloggs. !! As you all answered last week there is no easy way to squirrel money away without "you know who" knowing. The jury is out on this suggestion, Many thanks.

[Old_Geezer]

Interesting thought. Thanks. I shall consider that myself.

Can't bear to let the taxman rub their hands with glee profiting from that which I spent a large portion of my life going without in order to achieve. I don't see them making sacrifices for it. It is a bad system and one is forced to learn how to play it to get a fairer deal.

[themas]

I note you have seen a financial adviser. That may not be the best way to get advice on trust & inheritance tax law - which is very complex. PP suggested on your previous post a member of STEP. They are solicitors who are trained in & deal with trust law & the inevitable effects of inheritance tax. I suggest you consider seeing a STEP solicitor before making a final decision.

Be aware that setting up a trust is expensive, & that there are income tax implications as well as inheritance tax. Also, it is not unknown for Government to change the tax rules retrospectively - they did this on one aspect of Trust Law a few years ago, with seriously adverse results for some people.

[nelliebee]

Thank you so much for your interest, as I said these are only solutions I could consider, I will make my final decisions when I am confident of the outcome, As a result of todays meeting, at this moment in time, I'm told that if I died tomorrow, the government would get £170.000 of my money, which as Old geezer says our money was hard earned, we went without and times were hard , both my late husband and I worked very hard to achieve a comfortable lifestyle and also to provide for family. I will investigate the STEP solicitors. Thank you all very much, no doubt we will discuss more suggestions perhaps tomorrow.

[factor-fiction]

Wow, that's some estate then, nelliebee- I hadn't realised from your previous thread that it was over a million pounds you were talking about

[nelliebee]

shush...................I only share this with my fellow abers !! ( no-one knows where I live ) Ha ha. only joking.

[dzug2]

Do make sure you understand the ongoing financial, admin and taxation costs of running the trust - will you be paying someone to do that? If not do you have the knowledge and expertise to DIY?

Not to say it isn't worth it - but it's not a sit back and do nothing operation.

[nelliebee]

Thank you dzug 2, yes I do have excellent trustworthy people that I have used for years, also my Son is very knowledgable about financial matters. I just thought it would be nice to glean as much information from fellow aber's who may have experienced similar situations. As "Old Geezer" says the whole system is wrong when one cannot do as they wish with their hard earned money Thank you.

[factor-fiction]

Taxation is part of life (and death) I'm afraid though, nellie. Most of us try to avoid it if we can (ISAs, Amazon, Starbucks, Jimmy Carr, paying in cash, etc) but sometimes people can tie themselves in knots trying to avoid it

[nelliebee]

Thank you, and another thing that annoys me !!!............. The fact that before my pension company send me my pension, this is alreday had tax deducted, and then when my tax returns are completed in January my income is declared and I am taxed on this pension yet again, The top figure is seriously reduced by the time "Mr Taxman" has finished with it !! Have a nice day everyone, ( Sunshine here at the moment) fingers crossed.

[nelliebee]

A bit grumpy today ! Just off to Asda or 'Arrods and woe betide anyone that bumps in to me with their shopping trolley !!!

[factor-fiction]

All income is taxable- your pension, plus state pension, plus earnings plus interest/dividends. If you are paying tax on the whole of your pension at 20% with no allowance then I think the extra tax you pay at year end must be because you are a higher rate taxpayer. Just be grateful that the mansion tax hasn't come in.

[Old_Geezer]

The thin is there are taxes one perceives as being fair enough, a fair contribution to society's coffers, and others that seem targeted to hit individuals who try to be good citizens and merely choose to accumulate a bit of wealth. Especially when one sees the same money seemingly taxed on a number of different occasions.

[Old_Geezer]

The ***THING*** is ...

[nelliebee]

Thank you , I do not mind paying my fair share of taxes etc., It does get to me when, some people get away with, manipulating their affairs, and milk the system, and if like me you try to be and honest upstanding citizen we seem to pay the penalty.

[factor-fiction]

I suppose many of us manipulate our affairs in some way to minimise tax.
Good luck with putting your property into a trust fund

[black_cat51]

pmsl factor fiction