Helping your kids to buy a house increases inequality?

[scrumpyjack]

PS What the hell is a 'think tank'? Can anyone set themselves up as one?

Most of them seem to be left wing pressure groups, usually associated with a University and comprising mainly young misguided idealists with little real world experience and even less common sense. They set themselves up as charities (heaven knows how they get away with that as they provide no public benefit) and periodically issue 'papers' setting forth their latest fantasies pretending that they are objective and practical.

Best ignored.

ps yes any one can call themselves a think tank. There is no law against it AFAIAA.

[Dod101]

Well, I figured they needed their inheritance up front rather than later when I'm gone. Far better for them to have it while young rather than live hand to mouth in debt while the money sits festering in my hands. And if I didn't give it to them up front it's quite likely the government would charge IHT on it later. So, everyone is better off having done what I did. I was extremely fortunate the latter years of my working life, neither of my kids will likely ever come close to earning what I did.

No need to justify what you did. If we can afford to do so it makes great sense for all the reasons you cite. You were very fortunate that you could afford to do that.

Dod

[Lootman]

Well, I figured they needed their inheritance up front rather than later when I'm gone. Far better for them to have it while young rather than live hand to mouth in debt while the money sits festering in my hands. And if I didn't give it to them up front it's quite likely the government would charge IHT on it later. So, everyone is better off having done what I did. I was extremely fortunate the latter years of my working life, neither of my kids will likely ever come close to earning what I did.

No need to justify what you did. If we can afford to do so it makes great sense for all the reasons you cite. You were very fortunate that you could afford to do that.

Yes, TLF should be a safe space for rich folks, and folks who want to be rich. Without having to worry that the kind of person who sits in a think tank pouring scorn on them for having the temerity to be successful.

[Dod101]

I figured they needed their inheritance up front rather than later when I'm gone. Far better for them to have it while young rather than live hand to mouth in debt while the money sits festering in my hands. And if I didn't give it to them up front it's quite likely the government would charge IHT on it later. So, everyone is better off having done what I did. I was extremely fortunate the latter years of my working life, neither of my kids will likely ever come close to earning what I did.

apart from the absurd obsession with house prices in the UK, having seen that not only is our IHT allowance a small fraction of that enjoyed by our US friends (Why?), it has not kept pace with inflation and to be honest, is pretty pathetic.

PS The seven-year gift rule means I'd probably have to cut down on the G&Ts and start doing that thing I thought was illegal..... exercise!

So if the government is concerned about "inequality" then maybe it should abolish IHT, thereby deterring all these lifetime gifts to kids?

PS: In the US nobody with 325K is considered "rich". That starts at about 10 million, hence the 8-figure nil-rate band for US estate tax.

The UK has a very odd idea about what is "rich".

Obviously with a very much smaller welfare state (and thinking particularly about healthcare) I can understand that US citizens need more financial back up but once you reach a certain stage, I do not think you need excessive wealth, although even my estate is likely to be well in excess of £325,000!

Dod

[Lootman]

once you reach a certain stage, I do not think you need excessive wealth, although even my estate is likely to be well in excess of £325,000!

It was Wallace Simpson, I believe, who said "You can never be too rich or too thin."

[didds]

The UK has a very odd idea about what is "rich".

totally agree. I was shocked to learn quite recently that my salary places me in the top 15% of earners in the UK.

I earn well less than 50K.

the idea that I am potentially viewed as "rich" given im in the top seventh of earners, is somewhat laughable. If i stopped earning it wouldn't be long before i/we was/were destitute!

[1nvest]

Parents give away or loan around £17bn to their adult children every year

I'm obviously from a poor background, my parents couldn't gift/lend me £17bn even once, let alone every year.

The UK has a very odd idea about what is "rich".

totally agree. I was shocked to learn quite recently that my salary places me in the top 15% of earners in the UK.

I earn well less than 50K.

the idea that I am potentially viewed as "rich" given im in the top seventh of earners, is somewhat laughable. If i stopped earning it wouldn't be long before i/we was/were destitute!

The ones earning more have flighted the UK to less punitive taxation alternatives, the 1% that paid 33% of the total income tax take. Leaving the rest having to pay 50% more in tax to fill that hole, and where £50K/year jobs has you in the rich list.

History cycles, where Labour cries of 'hit (tax) the rich' and yeah! yeah! supporters, more often doesn't have many of the supporters realising that they're the relatively rich, until the pain hits home.

2018 data ... if you have just $4,210 to your name, you’re better off than half of people around the globe. https://www.cnbc.com/2018/11/19/how-muc ... dwide.html