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Leave it to the kids.

After a few conversations over the weekend, mainly about looking to move house, mortgages and the possibility of being left a sum of money from the grand parents, it got me thinking about what you actually gain from being left something. I mean yes its a wonderful thing, and it can help many people out financially.

Two years ago my own grandmother, who is still with us, gave my dad some money in a cereal bag. Odd. But she’d saved for years and wanted him to have it now rather than later, so with the money my parents re decorated the house.

If however that money had been left in a will, depending on the amount left will also depend on any fees or tax that need to be paid, and remember there could be solicitors fees.

If you’re left a huge amount and an estate this is when Inheritance comes into play.

Currently the threshold for estates, money and gifts is £325,000. This can be increase if its based on a couple’s estate. Typically the executor or the representative of the will has to pay the inheritance tax. The money tends to come from the deceased’s estate which is not held in trust, and yes, if the estate is over the threshold you will be loosing money due to the amount of tax, and this can be up to 40%.

Many people find this frustrating due to the nature that their parents or grand parents have worked incredibly hard over their life time to provide for their children and family. It is legally possible to avoid such drama. If you “gift” money to your offspring, like my grandmother did to my dad, the money is still counted as part of the estate up to 7 years after the gift. So one trick is to survive more than 7 years, and consider starting to pass on that money sooner rather than later.

There are a number of ways you can get around this. Just be savvy, maybe I’ll just blow all my money in Vegas, as long as I’ve got enough for tea, milk and some biscuits, I’ll be happy.

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Comments(1)

  • Posted by Marty Tommolino on August 31st, 2011

    Your type is so distinctive when compared with several others. Thanks for publishing whenever you possess the option,Guess I’ll just make this bookmarked.two

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