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Can we cover care costs and make gifts to our family?

These readers would like to make gifts to their family but will need to cover care costs as they get older
Can we cover care costs and make gifts to our family?

 

  • These investors should estimate their future expenses to get an idea of what they can afford
  • They do not necessarily need high-yielding stocks for income as they could sell investments which have grown strongly
Reader Portfolio
Michael and his wife 74 and 72
Description

Pensions, Isas and general investment accounts invested in shares and funds, residential property, cash.

Objectives

Sell buy-to-let properties, cover future care costs, continue to live in current home and cover its running costs, hold assets tax efficiently, mitigate IHT, make gifts to family if possible.

Portfolio type
Managing tax

Michael and his wife are ages 74 and 72, and have two children and several grandchildren. They receive an annual income of around £80,000 a year from occupational, private and state pensions, about three-quarters of which have inflation increases built in. About 80 per cent of that income goes to Michael. He also works part time and earns about £18,000 a year, but expects to stop doing this in the next year or two. They are both higher-rate taxpayers.

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