Inheritance Tax

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PintoPotts

  • #1
    I have a bit of a problem with regards to inheritance tax...

    I want to ensure my Son gets as much of mine and my wifes estate when we die (not for a while I hope).

    However the combined value of our assets is way in excess of the current Inheritance Tax limit...

    I have been made aware of Discretionary Trust Funds, but they only reduce the amount exposed to IHT and I want to get rid of it all.

    I have heard that there are ways round it, but I can't seem to find out how without being quoted silly money be specialist accountants.

    Can anyone offer me some advice please.
     
    Kent Accountant

    Kent Accountant

    Free Member
    May 30, 2006
    1,957
    160
  • #2
    1. Give it all away (sorry you don't want to do that!! )
    2. Don't reserve a benefit
    3. Don't fall within pre-owned asset regime
    4. Live for 7 years

    or

    Convert it all to assets within Business Property Relief

    or

    Give it all to charity :)

    or

    As you say get involved in dodgy schemes promoted by specialist accountants / lawyers (Like the double trust scheme)
     
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    Chris Kaday

  • #3
    If your combined assets are 'way in excess of your current inheritance tax limit' then don't penny pinch or risk giving your son a financial headache when you are no longer around. Spend some of it with those 'specialists' with their 'silly prices' and get sound advice. I am not a tax accountant but I do spend considerable sums on one and a damn good solicitor to draw up a tax efficient will. Believe me I do not throw my money away and would only do it if I got value!
     
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    Arcadian

  • #4
    Even the fancy schemes depend on giving it away in some form or another. I have a client sitting on 1.5 million who won't give away a penny. They're both in their 80s and save money out of their state pension and buy clothes from charity shops while the cash mounts up. Whenever I go to see them the son gets annoyed because I didn't persuade them to give away any money. I've been trying for years! They won't give any away because they think the family should "make their own way in life".

    They now want me to be executor. That will be easy. Hand over large sum of money to government .... It's going to hurt to hand it over even though it's not mine.
     
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    PintoPotts

  • #6
    Fair comments, thanks very much, I suppose it is a mind-set, spending £5000 on an accountant etc' and I don't have a clue what he is going to suggest or offer and also knowing it is for an event that you don't think will happen for years and years.

    What I wanted was an insight as to whether there really is a way to get round the IHT, or should I just do the discretionary trust funds and be done with it! (despite the fact that would still leave around £700K exposed to IHT).

    I am happy to hand some of the assets over to take advantage of the 7 year rule, if I was to sign a couple of properties over to my son won't he be liable to Capital Gains Tax though? If so it defeats the object!
     
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    Chris Kaday

  • #7
    What he is going to suggest or offer is a definitive view of what you can and cannot do based on his specialist knowledge of his subject assuming you select him well. If you want peace of mind then surely this is the only way to go. Still can't understand why you are speculating in here about huge sums when for a few k you can have an expert tell you what is possible. I wonder if you would do the same if it was brain surgery you were after? We might all like to have some fun operating on you but wouldn't you rather have a top surgeon do it? Chris Kaday business mentor .
     
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    TaxesClear Ltd

    TaxesClear Ltd

    Free Member
    Jun 28, 2006
    73
    2
  • #9
    Hi there

    You really need to sit down and work out what your estate consists of and where you think be potential exposure to IHT will materialise.

    Presumably your existent accountant is not much help but have you approached him as he could be armed with sufficient information to lead you through your options. Is there a reason for this?

    It may well be that some of your assets are already regarded as outside of the IHT net especially as it seems you are trading at present and also some of the properties could be classified as business property which is 100% exempt.

    Are you and your wife UK domiciled?
     
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    Chris Kaday

  • #12
    I know you started this string with the desire not to pay those dreadful professional charges but I have to say I had to use both my tax accountant to advise on some aspects and a solicitor to draft a will which covered others. Oh dear!
     
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