Will I need to pay tax if I give my son £30,000?
QIS IT OK for me to give my son £30,000 towards his mortgage without him or me paying any sort of tax, or anything similar?
AIT IS a gift. Therefore, anything over the £3,000 annual allowance will be classed as a “potentially exempt transfer” for inheritance tax purposes. Bear in mind there could be tax to pay if you die within the next full seven years. But it depends on the wealth in your estate as to whether there would be any IHT to pay.
QMY STATE pension will be lower than expected, despite making 35 years of National Insurance contributions. Why?
AIN 2016 the state pension saw a big change. While the aim was to make the system fairer for all and easier to understand, it can still be a minefield – and some retirees have lost out from the changes.
This can typically be
because they were opted out of part of the state pension and paid lower NI contributions. If you don’t think this is the case and need further help then contact the Department for Work and Pensions on 0800 731 7898.
QCAN you explain what a bloodline will is in financial speak? I’ve been told it’s a way for those who’ve been married before to ensure their own children get their inheritance, while still ensuring that a surviving spouse can continue to live their life without any hardship.
AA BLOODLINE trust is designed to keep assets in the family, protecting the inheritance of your children and their descendants. The
assets held in the trust will typically be used to support the beneficiaries’ education, maintenance, health or support.
QI’VE been saving into a Lifetime ISA but unfortunately I now need access to some of the money because I’ve been hit with an unexpected bill I can’t afford and I don’t want to take on any additional debt. Is there any way
I can do this?
AYES, you can take some of your savings out before the age of 60, even if you’re not buying a property.
However, it will cost you a 25% exit penalty for the
privilege. Only use your LISA if there’s no other option.
QAM I able to check if my parents are entitled to any benefits, or do they have to do it themselves?
ATHERE are a few benefit entitlement calculators online if you have their personal info. Try the Age UK calculator at ageuk.org.uk, or financial charity Turn2us has one at turn2us.org.uk
You can take money out of your LISA but you’ll be penalised