Stamp duty

[pete01]

If circumstances mean that I have to forfeit any inheritance for the good of the testator, so be it.

Well thats you, but I assume you would prefer your kids have your money than anyone else.

 

[noseall]

Well thats you

That's me correct.

but I assume you would prefer your kids have your money than anyone else.

Correct.

This still applies...

If circumstances mean that I have to forfeit any inheritance for the good of the testator, so be it.

 

[Deluks]

Correct. Worry not about house tax.

Dummy.

This is commie talk.

 

[pete01]

That's me correct.

Correct.

This still applies...

You say it like you have a choice, some circumstances mean you inherit nothing (or whatever the minimum is) you dont get to choose.

 

[noseall]

You say it like you have a choice, some circumstances mean you inherit nothing (or whatever the minimum is) you dont get to choose.

I don't get to choose the circumstances of the testator correct.

 

[noseall]

This is commie talk.

Cover your eyes.

 

[pete01]

I don't get to choose the circumstances of the testator correct.

Exactly

 

[motorbiking]

I don't disagree. But for some it's a good opportunity to have the wonga now.


Yes, having the wonga now costs money.
Just like in situations like Dragon's Den, you sell a share of your asset in order to have the cash, now.
That's how finance works.
But it doesn't explain Mottie's mathematical mistakes.

Pretty daft to stick it in the bank for a rainy day. When an overdraft, credit card of bank loan will do if you need it.

 

[Mottie]

Have you made a mistake with your sums?
£30k in the bank for say 10 years will probably yield about £15k interest, so a final sum of about £45k.
The house sold for £650, bu they had to pay £50 for the Equity Release, leaving £600k, plus the Bank Account is £645k, not far off the £650k sale price?
What's the problem? They had that lump sum in the bank for all those years for emergency funding, or whatever.

I’m only going on what I’ve been told. I think the equity release was about 25 years ago
Or more. They’d been in the house 40+ years. All I know is our friends are gutted about it. £30k all those years ago was a fair chunk of equity.

 

[pete01]

What i dont understand about equity release is isnt it some sort of hiding an asset..

If you sold your house to a relative for 50k and then need to go into a care home they would look into that and retreave the funds somehow..

So why dont they go after these scam equity release companies?

 

[noseall]

Exactly

The sound of a penny dropping.

 

[motorbiking]

What i dont understand about equity release is isnt it some sort of hiding an asset..

If you sold your house to a relative for 50k and then need to go into a care home they would look into that and retreave the funds somehow..

So why dont they go after these scam equity release companies?

You are free to make a bad contract.

 

[pete01]

The sound of a penny dropping.

It doesn't need to I knew what you meant all along.

 

[motorbiking]

I’m only going on what I’ve been told. I think the equity release was about 25 years ago
Or more. They’d been in the house 40+ years. All I know is our friends are gutted about it. £30k all those years ago was a fair chunk of equity.

It sounds like they opted for a shared appreciation with a multiplier. This is quite common. The multiplier will be 1.5 to 2x.

There is no interest on the “release” but they obviously get a multiplier and you pay an early release fee.

The numbers you describe sound about right.

 

[noseall]

Why not just done away with and let people keep their own money.

Ditch taxes, wonderful idea. What could possibly go wrong. Which outgoings would you ditch first? Pensions? NHS care? Attendance allowance? You'd soon have the moaning old duffers begging for taxes to be reinstated including property taxes.