Health issues and investment strategies....

[Dod101]

I am not sure what I would want to bother with other than a nice lady with whom to spend my final days!

Bucket list? Done most of that and actually it has worked out fine.

For me, I would like to see my grandchildren looked after by their grandfather. It is in the Will!

Investmentwise,I will make no change.

Dod

[Lootman]

A comment on the thread, a fair number on here have discussed giving things away, do be aware that IHT reaches back re lifetime transfers so taking decent professional advice before doing anything is likely very advisable.

Yes but it doesn't reach back for a "lifetime". Just 7 years absent a claim of reservation of benefit.

Gifts to charity or to a spouse should be fully exempt from IHT regardless. Likewise allowable small gifts and gifts from income.

I never said it did reach back a lifetime. , I said be careful with lifetime transfers and I stick to that comment.

OK so what do you mean by a "lifetime transfer" then? It's not a phrase I have heard used before and, on the face of it, it implies that it is any transfer that you perform at any point in your lifetime. The phrase I usually see used is "potentially exempt transfer" (PET), Or just "gift".

I suspect a lot of people do what I do, and keep records only of PETs for the last 7 years. Once a gift has "aged" after that 7 years, it drops off the list of PETs as it would no longer be reportable for IHT purposes. An Executor would quite simply not know about gifts older than 7 years, and would have no reason to look for them. The period of your "lifetime" prior to that 7 years, and any transfers made then, becomes irrelevant.

[Charlottesquare]

A comment on the thread, a fair number on here have discussed giving things away, do be aware that IHT reaches back re lifetime transfers so taking decent professional advice before doing anything is likely very advisable.

Yes but it doesn't reach back for a "lifetime". Just 7 years absent a claim of reservation of benefit.

Gifts to charity or to a spouse should be fully exempt from IHT regardless. Likewise allowable small gifts and gifts from income.

I never said it did reach back a lifetime. , I said be careful with lifetime transfers and I stick to that comment.

OK so what do you mean by a "lifetime transfer" then? It's not a phrase I have heard used before and, on the face of it, it implies that it is any transfer that you perform at any point in your lifetime. The phrase I usually see used is "potentially exempt transfer" (PET), Or just "gift".

I suspect a lot of people do what I do, and keep records only of PETs for the last 7 years. Once a gift has "aged" after that 7 years, it drops off the list of PETs as it would no longer be reportable for IHT purposes. An Executor would quite simply not know about gifts older than 7 years, and would have no reason to look for them. The period of your "lifetime" prior to that 7 years, and any transfers made then, becomes irrelevant.

A lifetime transfer is any transfer made whilst alive.

Whether it is or is not still subject to IHT on one' death, or has a charge on its being made, depends on what was transferred, timing , to whom etc.

My point is still that anyone considering making significant lifetime transfers is very advised to take professional advice before so doing.

I gave no indication of timing of same because of course nobody knows, when they make a transfer, how long they will live, they only know how long they survived etc years after the event, so at the point of the transfer surviving 7 years or not is unknown.

Any significant IHT self planning is imho akin to the solicitors' toast , "God Bless the Man (Or Woman) who makes his/her own will"

(Of course I would say that given my Accountancy Tendencies, but can honestly state IHT was never my poison of choice and I no longer practice, so I have no skin left in the game)

[Lootman]

A lifetime transfer is any transfer made whilst alive.

Whether it is or is not still subject to IHT on one' death, or has a charge on its being made, depends on what was transferred, timing , to whom etc.

My point is still that anyone considering making significant lifetime transfers is very advised to take professional advice before so doing.

I gave no indication of timing of same because of course nobody knows, when they make a transfer, how long they will live, they only know how long they survived etc years after the event, so at the point of the transfer surviving 7 years or not is unknown.

I would certainly agree that, at the point of making a transfer, you cannot know for certain that you will live for 7 more years!

However what you can know for certain is which transfers you made that are already more than 7 years old. And those may then be ignored for IHT planning purposes. If you keep documentation of transfers for your executors then those aged transfers can now be discarded.

As an example in 2015 I made substantial gifts to my children so they could buy their first home. As of 2023, in just a few weeks time, those transfers will be more than 7 years old and I will therefore remove the details of those transfers from the documentation I keep for my executors. It will be as if those transfers never happened.

So it is in that sense that the term "lifetime transfers" strikes me as a little misleading. There is a clear practical distinction between transfers made more than 7 years ago and those made less than 7 years ago.

[Charlottesquare]

A lifetime transfer is any transfer made whilst alive.

Whether it is or is not still subject to IHT on one' death, or has a charge on its being made, depends on what was transferred, timing , to whom etc.

My point is still that anyone considering making significant lifetime transfers is very advised to take professional advice before so doing.

I gave no indication of timing of same because of course nobody knows, when they make a transfer, how long they will live, they only know how long they survived etc years after the event, so at the point of the transfer surviving 7 years or not is unknown.

I would certainly agree that, at the point of making a transfer, you cannot know for certain that you will live for 7 more years!

However what you can know for certain is which transfers you made that are already more than 7 years old. And those may then be ignored for IHT planning purposes. If you keep documentation of transfers for your executors then those aged transfers can now be discarded.

As an example in 2015 I made substantial gifts to my children so they could buy their first home. As of 2023, in just a few weeks time, those transfers will be more than 7 years old and I will therefore remove the details of those transfers from the documentation I keep for my executors. It will be as if those transfers never happened.

So it is in that sense that the term "lifetime transfers" strikes me as a little misleading. There is a clear practical distinction between transfers made more than 7 years ago and those made less than 7 years ago.

You may consider them a breed apart, HMRC has them all under Lifetime Transfers and PETS are just one of many subspecies of Lifetime Transfer.

https://www.gov.uk/hmrc-internal-manual ... /ihtm14000

[AJC5001]

I would certainly agree that, at the point of making a transfer, you cannot know for certain that you will live for 7 more years!

However what you can know for certain is which transfers you made that are already more than 7 years old. And those may then be ignored for IHT planning purposes. If you keep documentation of transfers for your executors then those aged transfers can now be discarded.

As an example in 2015 I made substantial gifts to my children so they could buy their first home. As of 2023, in just a few weeks time, those transfers will be more than 7 years old and I will therefore remove the details of those transfers from the documentation I keep for my executors. It will be as if those transfers never happened.

So it is in that sense that the term "lifetime transfers" strikes me as a little misleading. There is a clear practical distinction between transfers made more than 7 years ago and those made less than 7 years ago.

I distinctly remember in the past seeing some 'guidance' on PET's and the 7 year qualification that there were certain circumstances in which any transfers in the preceding 7 years, i.e. up to 14 years in total, would also need to be considered as well in order to arrive at a true IHT calculation. However, as it didn't apply to myself or anyone close at the time, I didn't record what this was about.

Does anyone else recognise that there may be a need to go back 14 years and when this would apply?

Adrian

[Lootman]

I would certainly agree that, at the point of making a transfer, you cannot know for certain that you will live for 7 more years!

However what you can know for certain is which transfers you made that are already more than 7 years old. And those may then be ignored for IHT planning purposes. If you keep documentation of transfers for your executors then those aged transfers can now be discarded.

As an example in 2015 I made substantial gifts to my children so they could buy their first home. As of 2023, in just a few weeks time, those transfers will be more than 7 years old and I will therefore remove the details of those transfers from the documentation I keep for my executors. It will be as if those transfers never happened.

So it is in that sense that the term "lifetime transfers" strikes me as a little misleading. There is a clear practical distinction between transfers made more than 7 years ago and those made less than 7 years ago.

I distinctly remember in the past seeing some 'guidance' on PET's and the 7 year qualification that there were certain circumstances in which any transfers in the preceding 7 years, i.e. up to 14 years in total, would also need to be considered as well in order to arrive at a true IHT calculation. However, as it didn't apply to myself or anyone close at the time, I didn't record what this was about.

Does anyone else recognise that there may be a need to go back 14 years and when this would apply?

I found this reference that might explain it:

https://lewisnedas.co.uk/thank-you.html ... stablished.

It seems to be a fairly obscure situation involving CLTs into a trust and then PETs. Otherwise the article suggests that it is the 7 year rule that usually applies.

[MDW1954]

Probably for the best if I spend the inheritance - amongst other things a flight in a Spitfire is on my 'bucket list'

In the mid-80s, I learned to fly. I stopped flying 20 years ago (for no particular reason, and certainly intending to revalidate before the expiry of the then-current licence's validity).

But I never did. I flew occasionally with a mate in his Cessna 172, but never piloted a plane again.

Until this summer, when I went up with an examiner to assess what might be required to re-validate -- a process that I'm now engaging with, flying from a local-ish airfield that is very different from the large and busy airports that I'm used to.

The other week, I bumped into another ex-pilot in the supermarket. He was euphoric (and his flying has been far more adventurous than mine). The reason: a trip in a Spitfire. I have rarely seen an individual wax so lyrical.

Go do. I strongly suspect that you won't regret it.

MDW1954

[moorfield]

Probably for the best if I spend the inheritance - amongst other things a flight in a Spitfire is on my 'bucket list'

The other week, I bumped into another ex-pilot in the supermarket. He was euphoric (and his flying has been far more adventurous than mine). The reason: a trip in a Spitfire. I have rarely seen an individual wax so lyrical.

Go do. I strongly suspect that you won't regret it.

On the subject of Spitfires I would recommend looking at IWM Duxford also - a flight in a Dragon Rapide wing to wing with a Spitfire, or in a Spitfire itself, or even a Tiger Moth. Very expensive though.

I wish you well with your therapy Bree.

[moorfield]

A few years ago we had a topic about simplifying portfolios with advancing years. I know that one or two are moving in that direction by shifting from equities to Investment Trusts. I keep thinking about it but still have done nothing about it.

I regularly ponder that I might take that to an extreme, and leave everything in just one IT.

MYI would probably be the choice for an income pot (for Lady M), FCIT for a growth pot (for the offspring's SIPPs), both having a more global rather than UK based selection.



Another alternative might be to buy just 15 shares, and simply hold forever, ignoring press comment on those shares, resisting the temptation to meddle once the initial decision has been taken. There may be occasions when something has to be done, for example if a share is taken over for cash which has to be reinvested, but in general leaving the portfolio completely alone. Who on earth would contemplate that.

[Breelander]

...The other week, I bumped into another ex-pilot in the supermarket. He was euphoric .... The reason: a trip in a Spitfire. I have rarely seen an individual wax so lyrical.

Go do. I strongly suspect that you won't regret it.

MDW1954

Thank you, I will certainly go for it.

Although I never learned to fly, this won't be my first time in a two-seater plane of that era. As a teenager I was in the RAF section of the CCF at my school and had two flights in the back seat of a Chipmunk trainer. I expect to feel very much 'at home' in a Spitfire.

On the second flight the pilot asked 'you been up before?', when I said 'yes' he proceeded to do some aerobatics.

[tjh290633]

On the subject of Spitfires I would recommend looking at IWM Duxford also - a flight in a Dragon Rapide wing to wing with a Spitfire, or in a Spitfire itself, or even a Tiger Moth. Very expensive though.

I wish you well with your therapy Bree.

My first flight was in the RAF version of the Dragon Rapide - the Dominie -from an ATC camp at RAF Hooton Park in the Wirral. That was the home of City of Chester RAuxAF Squadron, who had been away with their Spitfires in Germany. On our last day they returned home, and we were treated to the sight of Spitfire taxying, in a zig-zag fashion to be able to see ahead.

Then I had an ATC Flying Scholarship and got my PPL on the Tiger Moth at Cardiff Aeroplane Club, then at the old Pengam Moors Airport. When I did my National Service, an early stage of aircrew training was Grading Flying on Tiger Moths at RAF Digby. Those who could go solo were pilots, those who didn't were to be navigators. Having already done 30 hours on the Tiger, I went solo very early and then the instructors took me up for aerobatics. Doing a slow roll in a Tiger is quite an exercise, which I never quite mastered. It was a lot easier in a Meteor. Probably also in a Spitfire, but I have never flown in one.

TJH

[torata]

Thank you, I will certainly go for it.

Although I never learned to fly, this won't be my first time in a two-seater plane of that era. As a teenager I was in the RAF section of the CCF at my school and had two flights in the back seat of a Chipmunk trainer. I expect to feel very much 'at home' in a Spitfire.

On the second flight the pilot asked 'you been up before?', when I said 'yes' he proceeded to do some aerobatics.

And on my 3rd flight in similar circumstances, the pilot said, 'Up for your own loop? Just point the aircraft at the ground. When you reach 120 knots, start to pull the stick back gently, keeping the wings level, until you see the horizon again.' I regret bricking out of that one.

Back OT: no health issues so far, but no will written and my circumstances are somewhat complicated by being overseas, so it's a reminder to me to pull my finger out.

torata