Jump to content
House Price Crash Forum

Archived

This topic is now archived and is closed to further replies.

SarahBell

Inheritance

Recommended Posts

Personally, I think that inherited wealth is not a good thing for society at all.

It distorts a lot of things in life and creates a sort of genetic lottery that you can't even buy tickets for - you need to inherit them.

Hearing my not so rich relatives worry about their perceived risk of having to pay IHT - fuming over being taxed twice - I don't have too much sympathy.

It's better to tax the dead than the living and if you claim that gifting your sprogs up to a million pounds in bricks tax free is just about right - then you have a very strange view of the world when your average FTBer is struggling to save a thousand pounds for their HTB rabbit hutch.

Share this post


Link to post
Share on other sites

Didn't the Swedes ditch inheritance tax altogether recently?

I gather Swedish attitudes to housing have changed quite a bit recently. A Swedish friend who's lived in the UK and elsewhere for decades, only ever rented when she was living in Sweden, and her family home was a flat in central Stockholm which came with her father's job. Though in the 70s her father did buy a holiday home in Majorca, which she and her sister inherited when he died.

OTOH her son, about 40 and living in Stockholm with 3 young children, has bought and moved house 3 times in the past 5 or 6 years, doing it up each time and making a bit towards the next. From what I gather he's not untypical.

Share this post


Link to post
Share on other sites

Personally, I think that inherited wealth is not a good thing for society at all.

It distorts a lot of things in life and creates a sort of genetic lottery that you can't even buy tickets for - you need to inherit them.

Hearing my not so rich relatives worry about their perceived risk of having to pay IHT - fuming over being taxed twice - I don't have too much sympathy.

It's better to tax the dead than the living and if you claim that gifting your sprogs up to a million pounds in bricks tax free is just about right - then you have a very strange view of the world when your average FTBer is struggling to save a thousand pounds for their HTB rabbit hutch.

Do you think they put what's left in the coffin? The tax is on the people who inherit, they just get less.

Share this post


Link to post
Share on other sites

I don't have a problem with IHT but I do worry about governments' increasing intrusion into the parent-child and family relationship. People will look out for their kids - it's the difference between having children as a family and being a government authorised breeder supplying replacement taxpayers.

Imagine, as a thought experiment, that you had 100% IHT. People wouldn't stop looking out for and providing for their kids to the best of their abilities. They'd gift money earlier in life, they'd spend on education and contact building, support kids/grandkids startups etc. In fact, inherited advantage would become far more entrenched in that manner than someone inheriting a bung later in life and pissing it away on a new BMW and cruises.

I suspect that 100% IHT would, as well as developing longer lasting inherited advantage, actually capture less tax. It's already a voluntary tax - paid only, as they say, by people who distrust their children more than they dislike paying tax.

Share this post


Link to post
Share on other sites

I personally don't see much point in passing money on to your children. Say the widowed parent lives to 80, and they had their children when they were around 30, then their children would be 50 years old. If they haven't made their way in life by then, then a lump sum of money isn't going to change much for them. Give it to the grandchildren who would be in their teens/twenties. It is an age when being gifted even a modest sum of money can drastically change their lives for the long term.

Or as I say to my parents/in laws - they are better spending their money on themselves, we would only waste it.

Share this post


Link to post
Share on other sites

Another form of inheritance is the children of the famous - sons and daughters of actors, tv presenters, etc - being rammed down our throats these dates. That distorts things enormously and is not fair on most people who are trying to pursue a career in the media, sports, etc.

Share this post


Link to post
Share on other sites

I encourage my parents to spend their money on themselves, one of my siblings however seems to have based their family's entire financial planning on receiving a big inheritance which won't be from the spouse's parents who are potless.

By "based" I mean credit cards maxed out, house remortgaged more than once, no pensions.

Share this post


Link to post
Share on other sites

I'm very pro inheritance tax because I have been very independent from my parents, started work at 15, don't expect anything when they die.

However, I am having to compete with boomers that have inherited when it comes to buying property at the top end.

The real pisser for me is kids that see their parent's money as theirs. It is very presumptive and they need to make their own money and way in life. Says me, a boomer that got to buy property at diddly squat in the 80s and didn't need an inheritance anyway. :ph34r:

Share this post


Link to post
Share on other sites

Although I take a pretty dim view of people expecting and relying on an inheritance the idea of the government grabbing everything off you when you die is even less appealing. The idea that it should be up to you what happens to your stuff when you die feels pretty fundamental to me.

Share this post


Link to post
Share on other sites

I'm very pro inheritance tax because I have been very independent from my parents, started work at 15, don't expect anything when they die.

However, I am having to compete with boomers that have inherited when it comes to buying property at the top end.

The really pisser for me is kids that see their parent's money as theirs. It is very presumptive and they need to make their own money and way in life. Says me, a boomer that got to buy property at diddly squat in the 80s and didn't need an inheritance anyway. :ph34r:

Also seeing that money as yours is a real demotivator. I know two local families who were extremely successful (holiday parks, hotels, cafes) up to my grandparents generation; coincidentally in both cases the greatest success was by what would be the equivalent of my grandmother, one of whom I met a few times. She was a very hard working and commercial person who believed in building up the family wealth.

Both sets of children (my parents generation) didn't follow in these lines but got easyish jobs and waited for the money to come to them.

Their children have for one family got easyish jobs and in the other family no jobs at all. Three children now in their 40s / 50s, none of them has worked since their early twenties and then it ranged from two - four years in total.

Give it another generation and the family money will all be gone for both. I know and like them but the knowledge that they never had to work to get a house or a pension or enough to live on has meant that they didn't.

Share this post


Link to post
Share on other sites
Guest

I encourage my parents to spend their money on themselves, one of my siblings however seems to have based their family's entire financial planning on receiving a big inheritance which won't be from the spouse's parents who are potless.

By "based" I mean credit cards maxed out, house remortgaged more than once, no pensions.

Running up debt based on future earnings? Always a safe bet! :)

Share this post


Link to post
Share on other sites

The idea of IHT I understand was to stop the growth of wealth in family lines...

Share this post


Link to post
Share on other sites

Running up debt based on future earnings? Always a safe bet! :)

Not even that. There's an inevitable bankruptcy in the post if they don't get the lottery win.

Share this post


Link to post
Share on other sites

The rich put their properties into offshore trusts don't they and don't pay any tax?

Even Maggie-T had her property in one.

I bet Cameron and Osborne wont be paying too much, if any at all.

Share this post


Link to post
Share on other sites

Also seeing that money as yours is a real demotivator. I know two local families who were extremely successful (holiday parks, hotels, cafes) up to my grandparents generation; coincidentally in both cases the greatest success was by what would be the equivalent of my grandmother, one of whom I met a few times. She was a very hard working and commercial person who believed in building up the family wealth.

Both sets of children (my parents generation) didn't follow in these lines but got easyish jobs and waited for the money to come to them.

Their children have for one family got easyish jobs and in the other family no jobs at all. Three children now in their 40s / 50s, none of them has worked since their early twenties and then it ranged from two - four years in total.

Give it another generation and the family money will all be gone for both. I know and like them but the knowledge that they never had to work to get a house or a pension or enough to live on has meant that they didn't.

I think it can be psychological damaging for the expectant kids. How often do you get the kids of wealthy families dropping out of Society after doing the Russell group University rite of passage thing and then having mental problems during their adult lives.

It's always been thus...Evelyn Waugh's Sebastian from Brideshead Revisited is something that was with us in the 1920s and always will be. I have known (or known of ) dozens of Sebastian's during my life.

By contast I was told I was useless, belittled by my family and school so really adult life came as a pleasant surprise with no expectations.

Share this post


Link to post
Share on other sites

I think it can be psychological damaging for the expectant kids. How often do you get the kids of wealthy families dropping out of Society after doing the Russell group University rite of passage thing and then having mental problems during their adult lives.

It's always been thus...Evelyn Waugh's Sebastian from Brideshead Revisited is something that was with us in the 1920s and always will be. I have known (or known of ) dozens of Sebastian's during my life.

By contast I was told I was useless, belittled by my family and school so really adult life came as a pleasant surprise with no expectations.

The modern equivalent would somebody like Callum Best and the best "aristocratic" ones Jmaie Blandford and the Marquis of Bristol.

Without inheritance tax we'd still have across much of Britain IMO the fairly feudal society of local aristocratic families owning huge estates and whole villages with a big stately home sitting in the middle of it all as it had for hundreds of years. I'm all for people being able to pass on a decent percentage of their wealth but I think the super rich (who haven't found a loophole) having their big estates broken up and sold off is a good thing.

Shame it doesn't apply to Prince Charles' Duchy of Cornwall which still runs the Isles of Scilly, for example, as a fiefdom.

Share this post


Link to post
Share on other sites

Without inheritance tax we'd still have across much of Britain IMO the fairly feudal society of local aristocratic families owning huge estates and whole villages with a big stately home sitting in the middle of it all as it had for hundreds of years. I'm all for people being able to pass on a decent percentage of their wealth but I think the super rich (who haven't found a loophole) having their big estates broken up and sold off is a good thing.

Such people (usually) seem to have some interest in actually looking after the place though. Or gambling it all away. One or the other at any rate.

Share this post


Link to post
Share on other sites

And on the subject of inheritance, it is funny how often it leads to ill will. I remember friends telling me stories in the past and thinking "thank god my family isn't like that", but it has led to a rather strange resentment and snidiness in my family too, even though I know it is completely irrational. Would have been better if the state just got it. (it's not even a lot of money)

Share this post


Link to post
Share on other sites

The government know best what to do with your money after you die.

Each departing soul now takes 250k in excess welfare over lifetime taxation, so whose money is it anyway.

Look the biggest ordinary estates ( 7 figures plus) are widows in their nineties in receipt of public sector superannuation pensions, they have also cost the country the most. Surely the State is entitled to some pay back as opposed to the cat's home.

Otherwise we leave today's young Kyle and Keegan to pick up aunty Edna's ball crunching welfare tab and Rupert bags Edna's loot tax free. We have got a two trillion debt to pay you know.

Share this post


Link to post
Share on other sites

Look the biggest ordinary estates ( 7 figures plus) are widows in their nineties in receipt of public sector superannuation pensions, they have also cost the country the most. Surely the State is entitled to some pay back as opposed to the cat's home.

Wrong solution to that problem I think.

Share this post


Link to post
Share on other sites

I think the best outcome is to live long and healthy and die painlessly and quickly, spend and share what you have whilst still alive and have good enough health to enjoy the fruits of your past labour with the people you love......dying, old, rich, without physical or mental capacity and without doing the things you wanted to do because quality time ran out, or giving to the people you choose to give to because the money might run out......born with naught, die with naught.;)

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   100 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.