The plan was to stay alive for five years. Granted, that was very much against the odds. But I bought into the concept of positive attitude keeps the bastard at bay. And chose to double the number of months afatinib would keep me alive.
The drugs have helped a bit. They’ve got me over the year mark. But, miracles excused, I know I won’t see out 2018.
The positive attitude moreorless remains. But it’s about bring happy rather than living as long as possible. And I am happy.
The inheritance tax plan needs me to get to April 2019. Otherwise my kids will get a rather nasty reduction to their payments out of my pension pot. It’s a rather nasty tax and I don’t really see the point of it. I’ve not spent the last year topping up my pension to create new tax breaks. So why tax the pot I created by changing my final salary pension into a cash sum?
Still, there is a small way to fight back. I’ve had the biggest earned income of my life this year thanks to a generous redundancy payment. And paid a lot of income tax on it. Gifts out of income are exempt from inheritance tax. So as long as I give money away this tax year I can reduce the value of my estate and the tax due without falling under the seven year rule that applies to gifts.
And by not using my pension pot I leave the door open for an argument with the Capital Taxes Office that because I didn’t get any new tax reliefs when I changed my pension arrangements IHT shouldnt apply. Granted, it’s a long shot, but Mrs Tenacious is probably up for that battle when I’m gone!
So I’ve dished out a few gifts yesterday. Sorry, the door is now shut. No more takers! And for every £5,000 I’ve given away now I’ve stopped it being worth just £3,000 after IHT when I’m gone. A legal tax avoidance. It’s permitted by a recent Finance Act. And it helps me deliver my initial instinct that I had on my cancer diagnosis. Get as much money to the kids as possible!
They won’t have to wait until they’re sixty to inherit. A problem their mates might have. They can benefit at a relatively young age and, used wisely, set themselves up with a big house deposit, cheaper mortgage and nicer home. Assuming that’s what they want to do with it.
Here’s an appropriately titled Hothouse Flowers song. I don’t know when they took on the tramp look, but the music’s still good.
January 16, 2018 at 7:29 am
Hi Dave, just thought I’d drop in a comment having seen the link to this blog on Headforpoints the other day. Good on you for doing all you can to get some traveling in, and for trying to make the most of what you’ve got without HMRC taking the biggest slice! Can’t begin to imagine how you feel about the whole situation yourself, but I do know how it feels from the relatives’ point of view, having lost my stepfather to leukaemia a couple of years back. Thoughts with you and your family, and good luck with everything you get to do and see!
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