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Anyone else now falling into possible inheritance tax territory?

153 replies

YumiZumi · 31/10/2024 13:46

I don't feel rich but I will be dead rich!

Big mortgage, high childcare costs so things are tight but if DH or I were to die, then if the second we're to die soon after - our mortgage would be covered by life insurance, there'd be one death in service (presumably the second death in service wouldn't be part of the estate?) plus our current pension pots which don't seem that large. (Or large enough to give a so called comfortable retirement)

All comes easily to over a million. Yikes!

My bank balance tells a very different story!

OP posts:
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MargotEmin · 02/11/2024 09:48

AlwaysFreezing · 31/10/2024 14:49

I think part of the problem is the cost of property. My mum and dad bought their first house for £17k and went through years of super high interest rates. Back then, the thought of a million pound estate was the preserve of the properly wealthy.

My house, I bought for for £175k, 15 years ago. We have renovated it and extended it and it's now worth a staggering 750k. If you'd have told me when I was younger that I'd live in and own (almost outright at 45) a three quarter of a million pound house, I'd have imagined it would have been because I was a pop star! Not because that's just the way prices went. So now, lots of ordinary people do have estates worth nigh on a million quid, or even more and yet they aren't pop stars, just a generation apart.

Sorry I'm missing the bit where this is a problem? Or why your kids shouldn't be taxed when they inherit their unearned wealth?

Lickthips · 02/11/2024 09:53

The cost of property is indeed a big problem and one which big inheritances make worse as it helps keep the property market artificially inflated.

frozendaisy · 02/11/2024 10:27

Why is everyone getting into a tiswas about this?

People seem to assume that they are both going to die with full pension accounts and none of their estate will be needed to fund later life care.

No one knows what is going to happen.

This is a budget that seems to be trying to address the wealth balance more, but it's only a little more, in favour of the young.

Surely if you have kids you can look at what Labour are trying to do? It's a gamble for sure but one that is overdue.

If you live to on average say 80, your kids will be what 50-ish when you die, they will have had a lot of their working and child rearing lives already, your wealth tied up in pensions and houses is not going to help them.

There is a social split between youngsters, friends fall out, between those who can buy a house because they have family financial help and those who are stuck, at home or renting indefinitely. Don't you want a more even society for you kids to grow up in?

No Government is going to go after all your wealth, what are the new rules, estates over a million, so the first million, million is safe. That's not ungenerous.

Try and not stress OP, hopefully you will live a long and happy life and your estate won't fall into the current IHT bracket. It will all have changed in 30 years because it always does.

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