Sorry! Another Jade thread
Discussion
All this extra money she is earning for her kids right?
Assuming its over the 400k (ish, cant remember the number!) threashold, 40% goes straight into inheritence tax if it goes to her kids. This needs to be paid before they can claim any of her estate.
Using 400k as the threashold
eg. She leaves them 2,400,000. So 40% tax has to be paid on the 1 million. It can't be taken out of the 1 million. It has to be paid before they can claim any of her estate. So they would need to fork up 800,000 to get hold of the money.
Now (again unless the rules have changed) her hubby can recieve as much as she wants totally tax free.
So what I am getting at is, basically was the whole marriage thing to get out of paying IHT? And is all this money saved for the kids going to be blown on coke and hookers well before they hit 18?
Or is there another way to get the dosh to the sprogs without a massive tax bill?
Assuming its over the 400k (ish, cant remember the number!) threashold, 40% goes straight into inheritence tax if it goes to her kids. This needs to be paid before they can claim any of her estate.
Using 400k as the threashold
eg. She leaves them 2,400,000. So 40% tax has to be paid on the 1 million. It can't be taken out of the 1 million. It has to be paid before they can claim any of her estate. So they would need to fork up 800,000 to get hold of the money.
Now (again unless the rules have changed) her hubby can recieve as much as she wants totally tax free.
So what I am getting at is, basically was the whole marriage thing to get out of paying IHT? And is all this money saved for the kids going to be blown on coke and hookers well before they hit 18?
Or is there another way to get the dosh to the sprogs without a massive tax bill?
dealmaker said:
She should have re-married the sprogs biological father - at least his interests are aligned with the kids'?
I thought that as well. The deal with the new husband is that he puts it straight in trust for the kids. As long as he lives another 7 years then there will be no IHT to pay.However, he seems to be a scroat of the 1st degree......
Tuska said:
dealmaker said:
She should have re-married the sprogs biological father - at least his interests are aligned with the kids'?
I thought that as well. The deal with the new husband is that he puts it straight in trust for the kids. As long as he lives another 7 years then there will be no IHT to pay.However, he seems to be a scroat of the 1st degree......
Or can it just be put into trust in his name without him being able to get his grubby mitts on it?
randomman said:
From an IHT perspective the money has to be 'his' for it to be tax free doesn't it?
Or can it just be put into trust in his name without him being able to get his grubby mitts on it?
Good question. And if it were in trust for him, would he then have to give permission for the trust money to be passed onto her kids?Or can it just be put into trust in his name without him being able to get his grubby mitts on it?
The Sun will sort it out, i'm sure they will become the moral guardians of Jades money....
Tuska said:
randomman said:
From an IHT perspective the money has to be 'his' for it to be tax free doesn't it?
Or can it just be put into trust in his name without him being able to get his grubby mitts on it?
Good question. And if it were in trust for him, would he then have to give permission for the trust money to be passed onto her kids?Or can it just be put into trust in his name without him being able to get his grubby mitts on it?
The Sun will sort it out, i'm sure they will become the moral guardians of Jades money....
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