Simon Dewsberry Posted July 12, 2007 Report Share Posted July 12, 2007 Hi All One for Plym If one ringfenced their assets into trust then got an offshore loan against the trust and used the proceeds to invest in "an investment bank" with good returns ...am i right in thinking that on the basis that the return was high enough, you not only offset any tax due but actually make a very healthy tax free profit ? (obviously with you - or rather me, as benificiary!) approx £100k income per £million? As the royal family do ????????? i think ? Simon Link to comment Share on other sites More sharing options...
Melboy Posted July 12, 2007 Report Share Posted July 12, 2007 To qualify for your thread title Rodent you have to be dead! Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 12, 2007 Author Report Share Posted July 12, 2007 Nice one Mel......! Tax not payable by beneficiary of trust ??- dont know what happens to this benefit when you pop off !! SImon Link to comment Share on other sites More sharing options...
Melboy Posted July 12, 2007 Report Share Posted July 12, 2007 Slightly off track on a Landlord's Forum but it will affect nearly everybody........eventually! For the last 3 Months I have been handling my very elderly Aunt's affairs. (Power of Attorney) and she has to now permanently reside in a nursing home (£620 per week!). To cut a very long tale of woe short the Social Services have now told me that they will not finance her nursing home after coming out of hospital for a bone fracture (4 weeks) and as she has no money by way of savings she now has to sell her 1 bed sheltered accommodation flat and pay for care herself. She is 92, Totally Blind, Stone Deaf, extremely frail, 6 stone in weight and in the first stages of dementia possibly altzeimers (sp) She worked all her life to the age of 68 paying her NI. has never claimed any benefit during her working life and has been a Widow for 27 years. Welcome to 21st Century Caring Britain......Just don't grow old! ( or move to Scotland ) Spend it and enjoy it whilst you can! Mel. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 12, 2007 Author Report Share Posted July 12, 2007 Sooooooooooooooooooooooooooooooooooooo Wrong....................... I think there comes an age when one should cash in and enjoy the only problem is : when ?????????? Simon Link to comment Share on other sites More sharing options...
GPEL Posted July 12, 2007 Report Share Posted July 12, 2007 Mel's comment sadly reflects a liberal minded country that has allowed over zealous socialists too many hands on the social engineering tools. To protect against this type of occurence I believe there are strategies available but require very specialist advice and/or local authorities to view the problem as medical. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 12, 2007 Author Report Share Posted July 12, 2007 Hi Mel Just read in my local paper about a similar case - except that her 63 year old son lives with her ....... Apparently if a "relative" lives at the prop aged 60+ the authorities MUST disregard the sale for funds ............. dont know if you can "arrange" that ....worth looking into..maybe.. Simon Link to comment Share on other sites More sharing options...
Melboy Posted July 13, 2007 Report Share Posted July 13, 2007 Hi Mel Just read in my local paper about a similar case - except that her 63 year old son lives with her ....... Apparently if a "relative" lives at the prop aged 60+ the authorities MUST disregard the sale for funds ............. dont know if you can "arrange" that ....worth looking into..maybe.. Simon No, I know all the legal side of what can be done and what can't be done and have even taken legal advice on the matter and She is not exempt from anything as she has no immediete family other than Nephew (me). The Auhorities have it all covered to ensure they can off load the problem if they can. When her money is down to 21k then they will start to pay a proportion of the NH Fee's again down to 14k and then they will pick up the whole bill. I doubt whether she will live for more than a couple of years though but you never know!! Link to comment Share on other sites More sharing options...
russ295 Posted July 13, 2007 Report Share Posted July 13, 2007 a work college of my ma's is in a similar boat, her mother went into a caring home and ran a bill up of 120k, her daughter lived with her at the time, she eventualy died, there was no will so the house has stood empty for about 7 years, there has been no probate but as soon as the property is sold the council are going to take their cut apart from 16k, its a cracking two bed in a reasonable town centre spot, needs windows, roof, heating the works, will take a week to get rid of the pidgeons, its starting to cost her money as the roof has been leaking but she doesnt want to go through probate as i think its a sentimental thing. i have hinted on many occasions that i was interested in it but to no avail. anybody know of a legal way she can sell it cheap to me and i give her a cash gift russ Link to comment Share on other sites More sharing options...
plym77 Posted July 17, 2007 Report Share Posted July 17, 2007 There are of course ways to get money tax free simon, but what you are suggesting would take some research to come to an absolute conclusion - so many factors affect this type of planning, circumstance, figures involves etc etc. There are clever tax-planning mechanisms that can be adopted but these are usually adopted at the higher end due to the high costs involved in setting up arrangements. Also, do remember that as a rule of thumb when you settle your own assets into Trust for your own benefit that you are taxed on it anyway... self-settlement legislation... although self-settlement can be done for other reasons, for example, protection of assets. So in answer to your question, yes there are ways to mitigate but these areas are too complex for a general forum, there would be too many caveats and circumstances for this type of tax planning can be too specific.... this is really specific taxation advice - sorry I cannot post further on this but I am sure you can appreciate my position! Link to comment Share on other sites More sharing options...
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