The Retirement Thread
1 lurker |
176 watchers
13 Sep
9:33am, 13 Sep 2024
77,540 posts
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Lip Gloss
Ah right. There is a lot more in the estate due to savings and investments and such. Never been in this position before so like I say whatever we get will be a gift.
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13 Sep
9:38am, 13 Sep 2024
88,078 posts
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Diogenes
I don't believe in taxing the dead.
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13 Sep
9:39am, 13 Sep 2024
50,911 posts
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HappyG(rrr)
Lip Gloss wrote: I won’t mind paying tax on whatever I get left because like you say it’s a gift I didn’t have. Errr, isn't that a rather academic difference? The "estate of the deceased" is no one! The person experiencing the reduced amount of money is the one who is inheriting. It might not be their tax, but they are the one's who are getting less money. (Which as I said before and glad LG agrees with me is all fine!)  G
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13 Sep
9:40am, 13 Sep 2024
50,912 posts
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HappyG(rrr)
Oops, that was meant to be Shades's comment that I quoted, sorry! Shades wrote:
Lip Gloss - you don't pay the tax. It's the estate of the deceased that pays the tax. |
13 Sep
9:45am, 13 Sep 2024
3,974 posts
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Shades
HappyG - I meant that a beneficiary is not liable for the tax bill and any tax liability is not in their name.
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13 Sep
9:46am, 13 Sep 2024
21,847 posts
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Cerrertonia
It seems to me that the difficulty with this CGT is that it creates odd incentives. My parents recently moved house, in their late seventies, so even in 20 years time, there's unlikely to be much CGT to pay compared with TRO's example of someone who had been living in the same house since 1960 where CGT would be due on pretty much the entire amount. Should the tax system encourage people to move house often? My old next door neighbour inherited the house from his father in 1971. He was 4 at the time, and his mum paid him a peppercorn rent for over 40 years after that. That also seems an odd kind of thing for the tax system to incentivise. Another old neighbour put her house into a trust fund for her grandchildren, to which she now pays a market rent. Most of the farmland where I used to live was owned by ex-city types who paid someone else to do the farming work, but used the 'passing down the family farm to the next generation' agricultural exemption to avoid inheritance tax. I very much agree with the idea that inheritance taxes are a good thing. The problem is at the moment is that they are mainly paid by the smallish number of people who either die suddenly or the wealthy who choose not to avoid it. The rich almost never pay it. It needs to apply uniformly, and today it's not close to that. |
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13 Sep
10:00am, 13 Sep 2024
50,913 posts
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HappyG(rrr)
Yip, +1 to all of that Cerra. G
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13 Sep
10:27am, 13 Sep 2024
17,795 posts
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jda
Taxing the estates of dead people seems like the perfect tax to me. There’s no pockets in a shroud, they have no possible use for money. The “losers” from such a tax are predominantly rich kidults in their 50s and later who have done the square root of fuck all to deserve an unearned windfall, beyond being lucky in their choice of parents. It blows my mind that parents still infantilise their adult children to this extent, thinking they are still reliant on handouts at this stage in their lives.
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13 Sep
10:57am, 13 Sep 2024
28,070 posts
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Sigh
The biggest tax grab would be to include private pensions within the calculation of inheritance tax, or introduce a threshold at which private pensions become taxable (and once introduced, thresholds can then be reduced time and time again with little fanfare - see the LTA). Everyone's circumstances are different. If an estate passes in the normal course of events, e.g. old age, then it's reasonable (but not guaranteed) that any offspring have made their path in life. But if my wife and I were tragically wiped out in the same accident, our daughter is still under 18, and has her whole adult life ahead of her; at this stage she'd need everything she could get from our estate. |
13 Sep
10:57am, 13 Sep 2024
7,556 posts
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bigleggy
I inherited a chunk of change in my 50's and paid no tax. I guess I did the square root of fuck all and hit the jackpot with my 'choice' of parent eh ? He didn't infantilise me either. The money goes to my kids, not me. So far it's paid for 2 family holiday we wouldn't otherwise have afforded and spending money, a new kitchen, driving lessons and first year insurance and deposits on their first vehicles, tools for the apprentice electrician, etc etc No doubt there will be weddings and Grandkids to spend in the future. I'd rather the money got spent in the economy than thrown away by the taxman. I wonder how much inheritance tax got spaffed on HS2, MPs expenses or second homes. And I still wish he's spent every penny paying for the care he so desperately needed in the last 2 years of his life ! |
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