One in 3 people retiring in debt.

[Diasi]

As you are a local councillor I'm surprised you seem to have little awareness of the reality of many older people's lives.  Many who are in receipt of pension credit have no savings, but have debt.  I can't imagine even in the wealthiest enclaves of the UK that there is not one struggling pensioner.

I think by now we are aware that you know how to manipulate a system that was put in place to help people in need to ensure that you can live well whilst retaining all your money.

It may be little concern as opposed to little awareness.

I also feel some shame at the thought of any fellow Civil Servant abusing the system, albeit within the rules.

The phrase 'gamekeeper turned poacher' springs to mind.

[GrannyMac]

It may be little concern as opposed to little awareness.

I also feel some shame at the thought of any fellow Civil Servant abusing the system, albeit within the rules.

The phrase 'gamekeeper turned poacher' springs to mind.

You are so well informed re benefits etc. (I've read your informative posts for a long time) I'm sure you could have taken some advantage if you had been so inclined. I know these loopholes are legal, but they are surely not ethical?

[klondike]

I have no objection to individuals legally minimising their tax but hiding your stash to be able to claim benefits is going too far to my mind.  

[Diasi]

You are so well informed re benefits etc. (I've read your informative posts for a long time) I'm sure you could have taken some advantage if you had been so inclined. I know these loopholes are legal, but they are surely not ethical?

Indeed I could have done had I chosen to do so.

In my personal opinion I think it goes further than unethical, it's totally immoral.

[zoony]

Money, or the desire for more of it, seems to have the power to weaken such personal values such as ethics and morals..I'd love an opportunity to be tested!

[em]

But you wouldn't strip all your assets just to get benefits,would you?Don't bother replying,Zoony.We all know that you are above that kind of trickery.

[zoony]

    More likely not bright enough to figure out the ins and outs of it in the first place..It's not something I'd do on purpose because I know what my opinion is of those that do and I couldn't live with such a person..

[em]

Just what we thought!

[Goingtoseed]

I have no objection to individuals legally minimising their tax but hiding your stash to be able to claim benefits is going too far to my mind.  

I have not and will not hide anything from either HMRC or the DWP.

Having capital in a Discretionary Trust means that it legally does not belong to anyone other than the Trust itself and is operated by the Trustees.

If I was stupid enough to gift my capital to such a trust for the benefit of only my children and their children so be it. It is no longer my money, I have no legal right to it, I gave it away years ago as I had no use of it.
Part (a very substantial part) was a payment as compensation for injuries sustained. Then we down sized which released further capital that we had no need of.
It is there for my future family for when I am long gone.

Put bluntly we don't need anymore than what we have - £10,000 in a bond which is there to bury us both when the time comes. We live on our various incomes - there is nothing else that we would need money for.

To suggest that there is something dodgy is far from the mark.

[Michael Rolls]

GTS makes a fair point about discretionary trusts. As he says, the money in that trust is no longer his, but is the property of the trust, to be paid to the beneficiaries when he dies.
Veronica and I each established such a trust and when she died Niall and Victoria each received 50% of its value, as they will from my trust when I die.
Mike

[Michael Rolls]

Oh, and perhaps I should make clear that surrendering some of that  capital in no way affected our liability for income tax, etc. We set the trusts up before  Veronica became disabled; had we known what the future held for us - thank heaven we didn’t- we probably would not have done so, because once Veronica did become disabled, our expectation was that at some stage she would have to go into a nursing home. £1500 a week would soon have run through our capital, even with the amount we put into the trusts included
Mike

[GrannyMac]

You didn't tell us you reduced your income and savings to such an extent that you qualify for means tested benefits.  GTS has pointed out on more than one occasion that due to putting all his assets into the trust, his pension and savings are such that benefits make up the bulk of his, and his wife's income. 

[Michael Rolls]

Good point, granny. No, of course we didn't manipulate our money to qualify for benefits
Mike

[Diasi]

But you wouldn't strip all your assets just to get benefits,would you?Don't bother replying,Zoony.We all know that you are above that kind of trickery.

If everyone did it, no one would be able to do it.

[Michael Rolls]

Very true
Mike