To think that parents cannot leave money to severely disabled offspring free of IHT

I agree. When I worked at a supported housing service the residents had more disposible income than I did working there on minimum wage. I don't begrudge this at all and think good state support should be available to all.

Which means taxing those who can afford it, which includes large inherited estates. Trying to avoid this is essentially taking money from the communal pot and saying you think you/your children deserve better at the expense of others.

No, it’s applied to the entire value of the estate. If it’s never going to affect you - along with 90+% of people - I don’t understand why you care about the “fairness” or otherwise. My estate will probably be liable for a small amount due to house price inflation - if care home fees don’t get it first - I don’t care because I’ll be dead.

Inheritance tax is fair

There should be more support for disabled people

Working farms should be exempt from IHT if they can prove they provide x output and continue for y years after it's passed on otherwise it'll have to be paid

@BIossomtoes why so arsey? I've said I have very little understanding of it (my parents have nothing so it's not something I have considered). In which case, do you only pay IHT on money that has not been taxed is that how it works?

So my parents buy house for 500k and it's now come to me and worth one million, so the IHT amount is only applicable to the extra 500k?

Had you bothered to read the thread you’d know double taxation on inheritance is a myth. Most IHT liability is because of property price inflation and that money has never been taxed. In taxation terms it’s virgin money. Added to which we pay tax on previously taxed money all the time - VAT, fuel duty, alcohol duty is all paid from income which has been subject to tax and NI.

I am sorry though to hear that you're struggling with it. I hope things get better for you. There are some charities which provide grants for holidays and the like, but then you have all the practicalities of actually getting there etc. I hope there's at least some good support for you in your local area.

My siblings isn't, his is council funded. But yeah, the CHC funding route for the other relative was brutal. It was only through social care intervention when she was in an elderly care home not even having the support provided to be able to do anything except watch TV. I'd hate to have been in that position in my 20s and I'd hate for anybody else to have to go through that. No winners for anybody there.

Provety is hard on everyone and many people with disabilities have to live in poverty also through no fault of their own. I do get it I have two sons in the same boat, you need proper financial advice, most my friends in this situation put the money in a trust which then doesn't affect the persons ability to claim universal credit.

Obviously there are changes at the minute with tax but you need to get advice and like me realise that we are fortunate to have this issue.

Sure, but that's only got to cover his food, bills and then anything extra. Per week, and that's just for him. Are you also including the mobility allowance that isn't factored into the care contribution? Covid meant that he saved quite a lot as wasn't able to spend on anything other than food shop and bills. It was after that that he did manage to afford a holiday in Europe, as he saved quite a lot over that year or two. They didn't go out for a lot of Covid except on walks. He rarely buys clothes and doesn't go anywhere fancy for those or for eating out. He goes swimming weekly and to a few different activities, but again, they tend to be minimal cost. It probably also helps that he shares his accommodation with 2 other young adults.

My other relative is in a different set up and her care funded through CHC. So I don't know the details there. I think she is fairly careful with costs, but again not unable to afford meals out or a short break once a year. Nothing fancy like going abroad or Michelin Star cuisine, but enough to live well and even have her own dog.

Yes, it is a limit, that unless you get very lucky you aren't going to be able to have things like your own property or even a substantial amount of assets or a brand new car that you own. But it's not guaranteed to be a life of total poverty with holes in your shoes where you can never afford to eat out. I know for some it can be, higher living costs in some areas, potential for additional costs due to health issues and mental health knock ons etc.

If there’s no inheritance tax working people will be taxed more. As far as the recipients of wills go it’s unearned wealth. I’d rather this is taxed than those struggling on average/below average incomes be taxed which would be the alternative. Services have to be paid for and just better off people paying income tax is no where near sufficient, Much of the money paid through inheritance tax (not talking about farmers) is because of the advantages the baby boom generation had in house buying ie the relative ease that was achieved and the house price increases. Significant amounts are not subject to iht (should be less imo) and that increases the unevenness and unfairness of our society. To me inheritance tax is no brainer.

You need you speak to a financial adviser and start planning for your disabled child's future now.

However your situation has nothing to do with the issue for farmers which is nothing ti do with "wealthy people not paying taxes" which is what you imply, and all to do with the nation's food security. IHT will see farms being broken up and sold off in order to pay it, rather than the farm being passed down to younger generations to continue farming. It's a terrible policy for that reason alone. We need to support farming as being able to produce our own food is vital for the nation. Farmers have been struggling for years with supermarkets driving down their prices and they rely on subsidies. They are generally income poor and asset rich. If you put more pressure on them, they will sell up and leave farming. We need to support our farmers, not make things harder for them.

Unfortunately there are wealthy people using the farm exemption as a way of tax avoidance which is why this has been done. But labour need to find a way to do this without penalising "real" farmers. Our food security is too important.

How many of you will set up some sort of trust or ensure at the house is held as tenants in common to avoid care home fees. Probably the same people who begrudge a disabled person a holiday but want the state to pay for their care when older. millions signed the various campaigns in papers like the Daily Mail for free social care for the elderly!

But... @Noras this is not what your thread is asking. You Lee asking for the government to make changes to the law for an exemption for you. Many people have suggested you take advantage of those same loopholes to plan efficiently.

I must admit reading this thread has me slightly confused. I have two relatives with severe disabilities and who have had no family financial contributions and yet are able to afford a decent lifestyle and wouldn't be seen to be living in poverty. Annual holiday, regular haircuts, meals out once a week and coffees etc. One of these being a sibling in a supported living shared accommodation with constant staff presence, the other living in a property themselves with 24/7 1:1. Because they're not able to work they have means tested benefits in addition to PIP. The local council pays for the care and accommodation with a small contribution and then from their benefits they pay the bills and for all other costs.

In fact my sibling had his means tested benefits cut off temporarily as he'd saved too much. Last year he went on an overseas holiday for a week with a 1:1 carer and he pays for various activities, meals out and coffee shop visits, along with a new laptop every few years and tablet. Taxis where necessary, if no driver on duty. I don't begrudge him this at all, as it does come with many limitations, but I definitely wouldn't say he lives in abject poverty.

In many respects he's more financially secure than other mildy disabled family members who have very limited qualifications and struggle to get a job above minimum wage and haven't been on holiday since before covid. They have enough to get by, but require family support financially.

I think my sibling with the more severe disabilities has a better life in supported living. Support workers whose jobs are literally there to support him, whether that be through cooking assistance, laundry guidance, supporting him with social activities and food shopping. He's become more independent and had so many more opportunities. Back when he lived at home he wasn't able to go on holiday or out as much, as there just wasn't the funding or support.

I am no expert in IHT, but isn't the whole concept unfair? To pay tax on something that someone has already paid tax on? Would it not be best to argue for zero IHT rather than equal rights to farmers?