Does anyone else think that having to pay tax after you are dead is quite a nice ‘problem’ to have.

[Daisydurrbridge]

I am like most people and will never have the ‘problem’ of paying inheritance tax. So many people are fussing and fretting about this tax without a true understanding of the terms under which it will have to be paid.

In my working life, I often had customers complaining about interest rate falls because they had to live on that money. I am not referring to ordinary people but those who needed wealth management advice. The thought that they could spend some of their capital filled them with dread. Only having three cruises a year type of worry.

Once when we were at dinner with friends they were discussing their parents and they remarked a time when they were really quite poor and had to live on their capital. When I said “quite poor” means having no capital they could not comprehend it.

i wonder if I am so out of step.

@Whatamitodonow Never give the home you live in to DC! They can turf you out. You should pay rent to them. It’s complex. Equity release is a total mistake. It’s a very expensive mortgage your dc will end up
paying it off from your estate and they might end up with next to nothing. Equity release is foolish in many ways . Don’t do it! Just gift £3000 a year or gift more and live for 7 years. Or put a lump sum in a children’s’ trust. Most of what you suggest has big disadvantages.

And if I don’t have the capital to gift because it’s all tied up in my house? Downsizing isn’t always an option if you live in an expensive area and don’t have a particularly large property.

i have no intention of getting any sort of equity release product. I said there would be more available as people get more desperate to avoid IHT.

i also did not mention anything about signing the house over to dc. I would consider putting it in trust for them.

if I can get a standard mortgage at reasonable interest rates then I would consider it to release equity. Not an equity release product.

with more people falling into the IHT brackets though the more the irresponsible equity release companies will profit.

Why? You just plan around IHT. Equity release is madness.

Someone who had a good income but it required working away from home a lot, paid additional money into a pension after tax, and was then taxed on their pension. Isn't that taxing the same money twice?

When you pay money into a pension you get a tax credit equivalent to basic rate tax. Higher rate and additional rate can be claimed via tax return.