Death & Taxes!

[puddingcat]

Yesterday I was evil for torturing gingerbread men. Today I'm twisted :)

M commented that someone had won £25k by betting that they'd live to 100. I simply said that it would be better to bet on one's parents living to a certain age, because then inheritance tax wouldn't be an issue on the winnings.

Apparently that's not a normal response. Seems perfectly logical to me...

Comments

[pink-weasel.livejournal.com]

You don't think he's going to blow it all right now on whores?

[little-smaug.livejournal.com]

What if it's a woman?

[pink-weasel.livejournal.com]

Well it wasn't! But even if it was, did you see CSI last night?!?

[little-smaug.livejournal.com]

Ah, man whores!

But even so, spending money on a guy who's far too pretty to be attractive and you're not even getting sex out of it? Where's the point in that?

[puddingcat.livejournal.com]

Also, how much could you actually get out of rent boys over the age of 100?

[puddingcat.livejournal.com]

He could have blown £25k of the money he already had on whores! It's all about keeping the value of his estate below the threshold!

[pink-weasel.livejournal.com]

Because he's your son!! Your son is a man whore!!

I don't get it myself. But if you were a 100 year old man, you might not be up for it.

[pink-weasel.livejournal.com]

To which I reply "eh"?

And his parents would be dead if he was 100, wouldn't they?

[puddingcat.livejournal.com]

Nonono, his *children* should have gambled on *him*. Then *they'd* have won the £25k, and it wouldn't be part of his estate when he eventually did die, so inheritance tax wouldn't be payable on it. Since *he* won it, it'll be part of the Stuff He Leaves, so IHT *will* be payable (unless he was pitifully poor).

[tama-grey.livejournal.com]

His children would still have to pay capital gains tax, though. Very difficult to keep the government from filching. Ideas: see which tax is less (inheritince or capital gains), donate to a family charity/trust fund or a non-profit, don't tell anyone and get the sum in cash...

[puddingcat.livejournal.com]

Cash isn't covered by the CGT rules :) If his kids had bet on him & made the £25k, it's exempt from tax - gambling winnings are exempt from income tax (unless you're a professional gambler...), cash is exempt from CGT, and the people who won the money wouldn't have died so IHT wouldn't be an issue, either :)

[miss-s-b.livejournal.com]

Seems like a logical response to me, too.

[feanelwa.livejournal.com]

When I am 100 I will be capable of spending £25,000 before I die, guaranteed. Actually, maybe he already has a lot of debt. What makes you think he didn't spend £25,000 on credit cards in the last ten years?