Lawrence wrote: Now who's up for buying shares in a cottage on the west coast for us all to use with a large barn/garage?
Needs a bit of work though.
Full details and pdf to download from http://www.macandmac.co.uk/details.asp?id=24318
Do you have a mortgage?
Needs a bit of work though.
Full details and pdf to download from http://www.macandmac.co.uk/details.asp?id=24318
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Black Disco 3, black van man spec...
Hi Robin,
On the whole IHT thing. It's a bit of disaster, there are lots of ways to try and reduce your liability. Baring in mind I'm not an accountant, but have looked into this a little.
Your IHT allowance is in the region of 285k (although this changes regularly). You can shift money sideways at no penalty (i.e. o wife/husband), so the whole estate can be passed to the surviving member. However, money that goes down, i.e. to kids, is liable. Therefore, it's best to push down the full alllowance of 285k to the kids on the death on one member, to remove it from the system. The remaining partner will still have their allowance of 285k on their demise.
There are other methods for protecting the money. One of which is called the "whole of life" insurance policy. It's basically an insurance policy which covers your IHT liability. Therefore, if you were 20k over your allowance, the insurance policy would be for 20k and pay out on death to cover the IHT.
You can put things in trust, but Gordon Brown is doing his best to get his hands on this and the management charges are quite lumpy i think.
Likewise, someone mentioned you can put the house to the kids. The downside to this, is that you have to pay market rate in rent for the property, not the nominal figure you used to.
You can make cash gifts to your kids of up to 3k a year (can't remember if this is per kid or total)
Also, as mentioned you can pass any amount of money down the way as long as you survive for 7 years. If you don't, the money will be taxed on a sliding scale dependant upon the amount of time survived from the 7 years.
Hope some of this is helpful. But find an IFA that you're comfortable with and chat about the options. It should be free.
Cheers
Robbie
On the whole IHT thing. It's a bit of disaster, there are lots of ways to try and reduce your liability. Baring in mind I'm not an accountant, but have looked into this a little.
Your IHT allowance is in the region of 285k (although this changes regularly). You can shift money sideways at no penalty (i.e. o wife/husband), so the whole estate can be passed to the surviving member. However, money that goes down, i.e. to kids, is liable. Therefore, it's best to push down the full alllowance of 285k to the kids on the death on one member, to remove it from the system. The remaining partner will still have their allowance of 285k on their demise.
There are other methods for protecting the money. One of which is called the "whole of life" insurance policy. It's basically an insurance policy which covers your IHT liability. Therefore, if you were 20k over your allowance, the insurance policy would be for 20k and pay out on death to cover the IHT.
You can put things in trust, but Gordon Brown is doing his best to get his hands on this and the management charges are quite lumpy i think.
Likewise, someone mentioned you can put the house to the kids. The downside to this, is that you have to pay market rate in rent for the property, not the nominal figure you used to.
You can make cash gifts to your kids of up to 3k a year (can't remember if this is per kid or total)
Also, as mentioned you can pass any amount of money down the way as long as you survive for 7 years. If you don't, the money will be taxed on a sliding scale dependant upon the amount of time survived from the 7 years.
Hope some of this is helpful. But find an IFA that you're comfortable with and chat about the options. It should be free.
Cheers
Robbie
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bertieduff
- Posts: 2253
- Joined: Fri Jun 09, 2006 12:19 am
- Location: Purple Side of the Moon
Think so...
I sold my property to fund my studies and now cannot afford to buy again.
Being self-employed doesn't help (so far the best I've been offered is 80% LTV).
So, the option was,
a) Find about £30k cash
. As not many of us have that lying about that means a big loan. Then get a mortgage. Then be very skint. Or...
b). Buy an elise
Took the sting out of it a bit
I sold my property to fund my studies and now cannot afford to buy again.
Being self-employed doesn't help (so far the best I've been offered is 80% LTV).
So, the option was,
a) Find about £30k cash
. As not many of us have that lying about that means a big loan. Then get a mortgage. Then be very skint. Or...b). Buy an elise
Took the sting out of it a bit
Lotus Corsa
Lotus Wagon R
Lotus Focus
Lotus Collie dug
Lotus Wagon R
Lotus Focus
Lotus Collie dug
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bertieduff
- Posts: 2253
- Joined: Fri Jun 09, 2006 12:19 am
- Location: Purple Side of the Moon
Think so...binned the paper though 
I sold my property to fund my studies and now cannot afford to buy again.
Being self-employed doesn't help (so far the best mortgage I've been offered is 80% LTV).
So, the option was,
a) Find the extra cash . As not many of us have say £30k lying about that means a biiiig loan. Then get a mortgage. Then be very skint. Or...
b). Sod it. Buy an elise
That took the sting out of it quite a lot
My salary ain't too bad either...dunno how younger people would manage!
Suppose (barring disaster) they'll inherit far more though, so ain't all bad.
I sold my property to fund my studies and now cannot afford to buy again.
Being self-employed doesn't help (so far the best mortgage I've been offered is 80% LTV).
So, the option was,
a) Find the extra cash
. As not many of us have say £30k lying about that means a biiiig loan. Then get a mortgage. Then be very skint. Or...b). Sod it. Buy an elise
That took the sting out of it quite a lot
My salary ain't too bad either...dunno how younger people would manage!
Suppose (barring disaster) they'll inherit far more though, so ain't all bad.
Lotus Corsa
Lotus Wagon R
Lotus Focus
Lotus Collie dug
Lotus Wagon R
Lotus Focus
Lotus Collie dug
I bought my first flat in 1987 for £24000 when I finished my apprenticeship.
Mainly due to different jobs (virtually all with the same employer) I have had a few houses, at one time I owned three. Right now I'm happy to be back to one, and I have been quite lucky with the property market, which is why I am now mortgage free, this is due almost entirely to the profit I made on a house I lived in Dublin, however, not too lucky, if I had let the house out when I left Dublin in 2002 and sold it now, I would have a spare £250,000.
I feel sorry for anyone trying to start out now, however if Interest rates edge up a wee bit, things could improve for you.
Giles
Mainly due to different jobs (virtually all with the same employer) I have had a few houses, at one time I owned three. Right now I'm happy to be back to one, and I have been quite lucky with the property market, which is why I am now mortgage free, this is due almost entirely to the profit I made on a house I lived in Dublin, however, not too lucky, if I had let the house out when I left Dublin in 2002 and sold it now, I would have a spare £250,000.
I feel sorry for anyone trying to start out now, however if Interest rates edge up a wee bit, things could improve for you.
Giles