****ty life

[Highway Man]

How would it help.

Unless you have too much for the IHT threshold.

Because he isnt willing to spend any of it on himself other than to give it to his daughter, pointless having it sat in his bank if it is stopping him getting help for himself. She might as well take it now and he keeps enough to be below the threshold of gaing help.
Think on !!!!!! Mr Selfish.

 

[Koolpc]

Because he isnt willing to spend any of it on himself other than to give it to his daughter, pointless having it sat in his bank if it is stopping him getting help for himself. She might as well take it now and he keeps enough to be below the threshold of gaing help.
Think on !!!!!! Mr Selfish.

Don't you mean.....Mr Shellfish?

 

[King Billy]

I don't see the advantage of giving it away now.

Any IHT is reduced depending on how long before your death it was given away.
The nil rate limit is £325,000 if no property is included.

 

[Koolpc]

Any IHT is reduced depending on how long before your death it was given away.
The nil rate limit is £325,000 if no property is included.

If only I had that much...lol

 

[motorbiking]

Because he isnt willing to spend any of it on himself other than to give it to his daughter, pointless having it sat in his bank if it is stopping him getting help for himself. She might as well take it now and he keeps enough to be below the threshold of gaing help.
Think on !!!!!! Mr Selfish.

The local authorities will be aware of such tactics. They will see the money existed and now doesn't.

It's not actually that easy to make money in a bank account disappear, as my ex wife found out.

Another option would be to move the savings to a SIPP, which I understand is exempt from capital assessments (but not income assessments).

Lets say. Koolpic has £50k in savings generating interest at 3.5%. £1,750 per year. Assuming he has not maxed his pension contributions out (60k) he can move these savings to a SIPP. The government will add 20% tax free (assuming he is a 20% tax payer. He could invest this in a simple all world tracker (VWRP / VWRL etc). He now has 60k generating 3-4k of retirement income.

Thats enough for some money for koolpic and his daughter.

 

[Koolpc]

Well 62 soon. Pension only around the corner. Plus, I not good at reading the markets etc.

 

[motorbiking]

VWRP is a "buy and forget" tracker. It is diversified across 3,500 different companies. Let's say you had 50k in 2023, had you done this, then, you'd have nearly 100k in your pension. That would have given you 4k a year as a pension on top of your state pension.

Lots of people have private pensions and don't understand the markets. They invest and trust others to make the investment choices. The funny thing is, they rarely outperform the market. That is to say the experts rarely generate more than the all world trackers.

 

[Wayners]

@Koolpc
My target is 9% +
Some just don't want to look at other options so are stuck just about keeping up with inflation.
Each to their own...

 

[pete01]

You're a top guy.

But I wouldn't rush into giving it away.

Top dog, but whatever

 

[Highway Man]

You're a top guy.

But I wouldn't rush into giving it away.

Why not if that is his intention anyway? He wont touch or spend any of it for himself, give her an ISA now. tied up so she cannot access it for a few years.

 

[Old Salt]

Take out a life insurance policy and name her as the beneficiary.