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crashmonitor

Inheritance Now Misses The Middle Aged...

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And to think the only reason that generation X and y are not rioting is they have great expectations....but maybe they should rethink their assumed inheritances.

Fortunately for Lynn Faulds Wood doing the paper review for the BBC last night...she proudly said she was an orphan on reviewing this topic. So no chance of disappointment there then.

Edited by crashmonitor

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Patently clear that the trillions in housing 'wealth' have not been pumped for the benefit of the little people (such that they ever really benefit from it, of course). The massive unfunded care liabilities will put paid to much of it and people (such as a similar aged relative of mine) who are banking on inheritance as a fundamental part of their housing affordability calculation are risking a big shock indeed for reasons you state on the other thread about pension age.

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Longer lives mean that retired people are more likely to inherit money......sometimes it may even miss them completely because it is already spent, or it goes towards paying for grand children's fees and expenses.....best not to bank on any inheritance as it may, or there is a good chance of it never happening. ;)

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it was becoming common for elderly people to leave remaining money to grandchildren, bypassing a generation

The key point in that is that they are bypassing a whole set of inheritance tax, and thanks to high property prices most families that own property are now subject to IHT if they all skip a generation thats another couple of billion the government will lose every year.

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Fortunately for Lynn Faulds Wood doing the paper review for the BBC last night...she proudly said she was an orphan on reviewing this topic. So no chance of disappointment there then.

My mum blew most of hers trading currency swaps or something. Always amazed at the high risk investments old people get themselves into. She's lucky she can't withdraw her teacher's pension or that would be gone too.

Edited by davidg

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My mum blew most of hers trading currency swaps or something. Always amazed at the high risk investments old people get themselves into. She's lucky she can't withdraw her teacher's pension or that would be gone too.

Ffs

Teacher

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My mum blew most of hers trading currency swaps or something. Always amazed at the high risk investments old people get themselves into. She's lucky she can't withdraw her teacher's pension or that would be gone too.

Haha.

My mum blew a large portion of her inheritance on investment grade fine art and bonded wine.

Teacher btw

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it was becoming common for elderly people to leave remaining money to grandchildren, bypassing a generation

The key point in that is that they are bypassing a whole set of inheritance tax, and thanks to high property prices most families that own property are now subject to IHT if they all skip a generation thats another couple of billion the government will lose every year.

The IHT threshold is £325k for an individual or £650k for a couple. The average UK house price is around £190k. It is factually incorrect to say that most families that own property are subject to IHT.

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I reckon teachers are among the most annoying of boomers. My parents were teachers, my aunt and uncle, and most of their friends. They all retired early (50-60), and with the exception of my late father, all swan around spending half the year on cruises, at their holiday homes in France or Cyprus, visiting relatives in the USA etc. Pensions can't be bad. I'm a teacher too, and I really hope I never end up doing the same. My mother has two flats in France (next to each other, totally pointless), another which she rents out, a garage (which just has bikes in it, which she doesn't ride), a house in England, and recently sold her half share in a house in France, a small boat, and a static caravan. She then spends savings on maintaining the flats. We are by no means a wealthy family. She then spends half her time lecturing me about not indulging my somewhat expensive hobby of flying, and about how I should be buying a house, despite the fact I have a great rent-free flat as part of my job.

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Ros Altmann, the Government's older workers' tsar, said: "The way things are going, the whole concept of the inheritance is under threat.

The "concept of inheritance" under threat? Good riddance. Maybe then we can return to the "concept of earning money via hard work". It's a strange concept that died out a while ago.

Unfortunately the "concept on inheritance" isn't under threat for the old boys at the helm of the Tory party. Cameron, Osborne and Boris have inherited hard their entire lives.

Still, if the average Telegraph reader can no longer rely on an inheritance to help them fulfil their expectations, then maybe they'll be less inclined to vote for those that have no virtue other than having been born into wealth.

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The IHT threshold is £325k for an individual or £650k for a couple. The average UK house price is around £190k. It is factually incorrect to say that most families that own property are subject to IHT.

Ah, but is that the average price of property-owning 70+ folk? No idea what the number is, but I think your're comparing apples and oranges a little here.

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Ah, but is that the average price of property-owning 70+ folk? No idea what the number is, but I think your're comparing apples and oranges a little here.

Less than 4% of estates according to this other Telegraph article:

http://www.telegraph.co.uk/finance/personalfinance/10472087/Steep-increase-in-families-caught-by-inheritance-tax.html

IHT is the classic aspirational tax. People like to think / boast that they will be affected by it, when in reality they won't. This gives publications like the Daily Mail an excuse to campaign against IHT for the benefit of the wealthy and make their readers feel good about it in the process.

However, I think the effectiveness of this trick is probably waning a bit now that the wealth of the average earner has been so greatly eroded. I can't believe that many UKIP supporters, or even Daily Mail readers have inheritance tax thresholds down as a significant concern.

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