The 50k (cash), I think it's 7 years from the date they give it to you, don't know why I have that time period in my head. I also thought any gifts over x amount were taxable even while the donator is alive. Again I've not checked any of this, but I'm sure it's a bit of a minefield.
I'm pretty certain you're correct with the 7 yrs. I also believe the threshold goes upto £500,000 if a property is passed to a son/daughter but only on the property value and the total estate is less than £2m. Definitely worth getting some proper advice Saf, as these things change. But vote Tory and Hunt will scrap it all together
I seem to remember too, that when we did our wills, as part of the estate was my wife's business, that gets passed down to the kids with no tax implications.
Thanks lads… So basically there’s no loopholes or somewhere to put/invest your cash to avoid/lessen the tax. The rest of the family have run for the hills. Nowhere to be seen. I’ve been left to give up work again and move back in here. I’m raging with them and so is my old man. He wants to make sure he looks after me more because of what I’m putting in here. There’s no property or businesses, everything was sold up. It’s cash only. I’ll throw a number out which isn’t true. If there was 500k, then the difference between 325k and 500k would be subject to 40% tax. That would be 70k. That’s the top amount that will be taxed if he slides some money in my account. So, say he gives me 50k. That would leave 450k in his account. The tax man would still have the 70k from that top amount of 500k that was there leaving 380k to be shared out to all of the recipients in the will. So I’d not personally pay any tax on my 50k, it would come out of the will, so all of them would take the hit for it and we’d share the 380k. I think I’ve got that right? If so, **** them. That’s the way it will need to be.
As far as I'm aware, you can get a £3000.00 tax free gift allowance each year, I'd imagine that, as you've given up work, there may be a way round him employing you, with a £12,570 wage which would then also be tax free, you're his cleaner/gardener and he needs them doing as he's unable to do them himself, so why not employ you rather than someone he doesn't know. Or take a £20,000 wage then you will only pay 20% tax on the difference, rather than 40% through IHT. I'm sure Fosse would be able to give better advice on that though.
Looked after more? **** the others, he should give you the lot. Nothing pisses me off more than a bleeding heart parent who bottles the will. No offence to your old man ofc Saf, but have very recently dealt with this myself. Got a story actually. My Grandfather passed recently and I was their surrogate son, I had been fed for years that I was getting a portion of his estate, my mother is going to spunk her inheritance up the wall and by the time she's dead and penniless, my siblings will be devouring the remaining despite never visiting the grandparents in their entire lives. I travel from another country to visit and ****ing lived with em for years. Never mentioned the will personally but was told it was the case. So imagine my surprise, after he's passed, the reveal of the will and I am completely out of it - my mother is getting her entire slice again and will "pass it down to me." He bottled it, basically. Eddie Howe levels of family management. Okay, no money for me - I don't want family drama so I drop it. Its just not worth it, I'm doing alright anyway. Fast forward, I am recently visiting my Nan, she was in a depressed daze when he died and had a ton to deal with, we all are having a family meal and my Sister (who wants me to be involved in the will) says: "well, he loved you like a son Welshie." I reply "nah, just his grandson." She goes "what dya mean?" Bro I wasnt in the obituary anymore than a mention alongside everyone AND I was cut out of the will, he EDITED me out. My Grandma heard us, didn't say a word - she has legal right to change it before she passes and hey ho, I'm back in the will. She always did have the balls. Tldr: keep your Dad on this and don't let him ****ing waver. Turn your back and suddenly underserved are stuck back in the ****ing thing for doing **** all.
I like the work idea. Keep it within the annual personal allowance, I can't think why that would not work. Along with a gift before he employs you, as a thank you. Like you say, Fosse might know, what's douable and what's not.
I know nothing about this sort of stuff but considering the amounts likely to be involved it would probably be worth shelling out a bit to get professional advice ( in writing) from a financial adviser / solicitor .
Good idea but I’m not sure it would be worth the paperwork and ****ing around with it. It’s palliative care, now. It’s in the final stages and saying he’ll be here another few months is optimistic to say the least.
No offence taken pal. It’s a funny situation. Until just a few years before covid I’d not really had a relationship with him. I’d only seen him a few times in my life. He’s had his life with his wife who he was married to for 30 years and her kids. I wouldn’t want it all, it wouldn’t sit right with me. Like you, I’ve been fairly successful and I’ve built a life without him. At the moment, everyone else is cracking on with their lives and pulling in wages while I’m living off my savings, although tbh, I’m only paying my household bills which is pretty much standing charges for energy etc. My old man covers any shopping or anything he needs here. My brother is an advanced scaffy and he won’t work for less than a grand a week. None of them will help out here and while they’re pulling in them wages I’ve got no problem accepting what my old man has proposed and that’s dropping me a lump sum for doing this because he knows I’m missing out and doing all the graft here. What’s left will be shared out equally.
I’d have told you to pop in bro but tomorrow is when the nurses and carers are popping in to change his bandages and see how he’s doing. They never give a time, they ring you when you’re the next job so I can’t even plan around them. Next time, though
Saf could legitimately be employed as his carer. If you’re buying that it costs a ****ing fortune. I know because we did this for my dad towards the end. Other than that, what about if his Dad invests the money into something like Premium bonds. I don’t think they are taxable ?
My parents are ****ing ridiculous when it comes to stuff like this, any sniff of someone dropping dead and they are all over it. Recently my mother's uncle died and before any will is involved they are through the house and have basically robbed the place including the car before anyone else can get a sniff. It's quite scary.
usually five days after they put the driver in to administer the medication for end of life….. not a good time for you dude but you be glad you have done your bit once the inevitable happens My thoughts are with you
