****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.

 

[fivearches]

I do not comment much on here but Koolpc has been given in my mind a lot of very good advice. If I was in his position I would snap up the offer from the council after waiting over five years on the list it seams ideal for his needs as he will have his own front door to lock and no worry who else is in the home. If he pass on this he may not get another offer as you are making yourself homeless and by accepting it you may be able to exchange later if you are not happy and the council allow. He talk about savings but they are there for him to use on a rainy day and that day has just turned up. It also look like once the rent is paid you will have no other big bills to think about.

As for items for the flat there items on Freecycle.org which people give away free to help until you can sort yourself out and down here in London charities have been set up to help people who are homeless to get back on their feet but he will have to make the effort to find bits and pieces.

Whatever he decides I wish him all the best and hopefully be in a more settled accommodation and better situation than at the moment.

 

[Harry Bloomfield]

As for items for the flat there items on Freecycle.org which people give away free to help until you can sort yourself out and down here in London charities have been set up to help people who are homeless to get back on their feet but he will have to make the effort to find bits and pieces.

What we don't know, is if Kool has any transport available to him, to collect these items? While the offers of donations from forum members might be genuine, again the problem is transport - distance, makes this not worthwhile, except for those living not to far from Kool.

I checked the delivery cost, with a local large charity shop, selling furniture, they were charging £39. They had a settee there for £15, getting that one item delivered makes it not worthwhile. However, collect several items together, for delivery, and it might work.

 

[cdbe]

As above, when you don't have a great deal, it's more about the pensions tax relief than taking risk to maximise returns.

For your daughter, you should be funding a LISA for her, £4,000 a year, every year for as long as you can - if you'd done it last week and this week she'd already have £10,000 protected from the taxman and your local council.

Hiding your money under a 3.5% "mattress" is just throwing it away.

There's various other little "wins" that you can take advantage of - try "moneysavingexpert.com" - a bit like here, you'll get genuine, free and sound advice.You probably need to be a bit less "shy" about your finances to get the best advice.

You're close to state pension age - have you checked your forecast, future entitlement to housing benefit, pension credit, the wonderful PIP etc?

Unless you have big money, keep away from paid for financial advice.

Be aware that the government offers many ways for you to keep more of your money but is equally happy to take if from you if you don't mind.

 

[Koolpc]

I do not comment much on here but Koolpc has been given in my mind a lot of very good advice. If I was in his position I would snap up the offer from the council after waiting over five years on the list it seams ideal for his needs as he will have his own front door to lock and no worry who else is in the home. If he pass on this he may not get another offer as you are making yourself homeless and by accepting it you may be able to exchange later if you are not happy and the council allow. He talk about savings but they are there for him to use on a rainy day and that day has just turned up. It also look like once the rent is paid you will have no other big bills to think about.

As for items for the flat there items on Freecycle.org which people give away free to help until you can sort yourself out and down here in London charities have been set up to help people who are homeless to get back on their feet but he will have to make the effort to find bits and pieces.

Whatever he decides I wish him all the best and hopefully be in a more settled accommodation and better situation than at the moment.

Waw, thank you too....nice post...all of you have been so supportive...

Daughter is not planning to stay in UK once she finishes her degree. She wants to live in Canada. She has been on about that for years! She now has a Canadian boyfriend! They are on the same course.....

She has an ISA. And is good at saving (at the moment)...

She is all for me accepting the council flat. I have a meeting with council tomorrow.