Legacy for the future
I thought the premium bonds could by used for this as it all ready existence and that you only put £30,000 in to them.
First change would be to exempt the premium bonds from any means testing to encouraging people to buy the premium bounds.
The next change would come when the person pass away and it pass on to the next person, as he or she will now have some chooses to make.
It cannot stay as premium bonds.
Cash it. But as it was not means testing and some of it could have been used when the original owner may have been receiving benefits this would incur a hefty tax on it e.g. 98%
To transfer to an interest account (e.g. name for the account, inheritance bond account). The bonds no longer have the right to win any money from premium bonds. Now the person would have some more chooses to make with this.
2a. Take a income from the interest but this would be taxed, e.g. a none tax payer would pay say 20% and a 20% tax payer would pay 40% and so on.
2b. The interest would go in to a hold account that also would make interest but this interest would not go to the person but to the tax man all 100% of it. The money in the hold account would be spent with in a framework that the government would set up not to spent on luxury so for example
A house wife not making any money of her own could put it towards a pension.
A mother and father may be ably to club together to pay for or to subsidize the payment for child care.
If an old person or a family who cannot afford the heating bill this could help.
Or if the government what to promote let say healthy living so may be the hold account could have some sort of debit card so you could say that fruit and veg could be bought at the supermarket.
Also communities could club together let say to help to pay for broadband.
Once the money is in the inheritance bond account it should be made imposable to remove it can only transfer to the next person on death in a will or who ever get the estate. If any attempt to remove only 1p would be hand over and the tax office would take the lot as it is meant to be a legacy.
When the person pass away any money left in the interest hold account cannot be passed on and all of it will go to the tax office, but the money in the account, inheritance bond account passed on to the next person and any new premium bonds will be added to inheritance bond account or if this person already has one of this accounts it all get added to that account tax free
Companies like banks and building society, supermarket could run accounts.
Why is this idea important?
Why is it important
This over time will build and the interest going to the hold account will also build and know mater what happens to the to the person wither out of a job or homeless there would all ways be some money coming in for that person. Also the holding account would also would be making interest would be taken by the tax office