O/T. Will

[CTMilller]

You have been out of the UK for a long time, CT... Capital Transfer Tax (CTT) was abolished in the 1980s.

There is an advantage in transferring wealth during one's lifetime as the transfer will be a 'Potentially Exempt Transfer' that will not give rise to any Inheritance Tax liability provided that death occurs more than seven years after the gift is given.

But I am not a tax expert and it would be worth the original poster seeking tax planning advice.

As for the original question - that is an intensely personal issue upon which I would not comment.

Thanks, Kerr.

I had a feeling it was no longer called CTT but was in a bit of a rush when I was writing and didn't have time to check.

Interesting that it was the eighties; probably the last time I was looking in any depth into the tax on inheritance.

[gm_gm]

I already have one but it's ready for a update.

Question is. I have 2 children And 2 grandchildren
One of my kids has no children one has 2 children

Regarding money. Would it be fair to give 50% of the cash to my child without kids. And split the other 50% between my other child and grandkids.

Or should I just split it 4 ways?

Half of me thinks a fair way would be 4 ways but then I think why should my other child be penalised because she couldn't have kids.

The best advice I can give Cayton is basically ignore everything thats been posted on here.

As always the best thing to do is to seek professional advice on estate planning, if you are either in IHT or close there are ways to avoid this, its currently 40% of everything over £325k so thats a £190k tax bill on an estate of £800k.

Strategic tax planning is essential, a will on its own aint enough. If you want a referral to a estate planner PM me and I can put you in touch.

Also forget junior ISAs at the moment, stick the lot (£20k each) in Stocks and Shares ISA and watch it fly over 10-15 years

[howdydoo]

The best advice I can give Cayton is basically ignore everything thats been posted on here.

As always the best thing to do is to seek professional advice on estate planning, if you are either in IHT or close there are ways to avoid this, its currently 40% of everything over £325k so thats a £190k tax bill on an estate of £800k.

Strategic tax planning is essential, a will on its own aint enough. If you want a referral to a estate planner PM me and I can put you in touch.

Also forget junior ISAs at the moment, stick the lot (£20k each) in Stocks and Shares ISA and watch it fly over 10-15 years

GM, I’m puzzled. What’s wrong with a junior stocks and shares ISA for grand children?

Why should he ignore everything on here, when 4 or 5 contributors have more or less posted exactly what you have?

*scratches head*

[Yak]

It’s always difficult to get it right.
I have 2 kids and it’s a 50/50 split.

I have a few properties and I’ve also split the deeds on them 50/50.

Still the most important thing in all of this is to do what you think is best.

[gm_gm]

GM, I’m puzzled. What’s wrong with a junior stocks and shares ISA for grand children?

Why should he ignore everything on here, when 4 or 5 contributors have more or less posted exactly what you have?

*scratches head*

Apologies howdy, misread the junior ISA thought it was intended for a cash ISA.

Theres lots of ways of legally avoiding IHT (if Cayton is indeed liable) which I wont go into on here, but its thinking creatively for which professional advice is required. Taking DIY advice on financial matters isnt advisable IMO

[Brin]

It's a very long time (20 plus years) since I looked at any tax law, Brin. Nothing I say should be relied upon and I would urge you to seek independent advice.

Inheritance Tax (IHT) is payable on estates worth over £325 000. There are some special rules in relation to your main residence, but beyond that, bequests to your children can attract IHT.

To prevent people avoiding tax on their estate by giving it away when they are contemplating their death, IHT can attach to gifts made within seven years of death. For IHT purposes they are 'Potentially Exempt Transfers' (PETs). PETs are subject to a tapering relief, so a gift made just under seven years before death will attract a much lower level of tax than one made a few weeks before.

The bottom line is people with reasonably large estates and above who want to make sure that their kids get as much as possible should consider making gifts during their life time.

Speak to a tax planning expert, not me.

Kerr, Thank you.

[caytonmiller]

Thanks again to everyone who have given good advise. It was more the dilemma of a fair way to split it rather than the amounts.
I will need to get professional help in the near future as like yak, i own a few additional homes as well as my own, plus my business and life insurance. Savings, ect so it's quite easy to hit the tax threshold.

[Grist_To_The_Mill]

My thoughts

Other than a will sort out:-

1. A lasting power of attorney just in case you are incapacitated and cant make decisions for yourself
2. Check up how much per tax year you can give away without upsetting the tax man

Easily googleable