Inheritance tax planning

[squavy]

Hello hope you can help, my mother is a healthy and young 66 and has a large estate approx 850K main residance and 900K in other properties & assests, we don't like the discussing IHT but feel some planning is required. I am very happily living with my common law wife (of 10yrs) and we have a wonderful 15mnth old daughter. You would obviously require more information but could you be of assistance to us. Thankyou Squavy.

[robertmlaws]

Here's something to consider: When she does die, you will need to borrow a big chunk of money to pay the first installment of the inheritence tax. you have to do this _before_ you are granted probate and until you are granted probate you can't touch the assets. THe first installment of tax amounts to about £130,000. Could you raise such a sum?

But, if she moves £130,00 of her investments into government NSI saving certificates then these _can_ be used to pay the first stage of the IHT before probate is granted. You can't get at the moeny, but you can have it passed to the IHT people.

It would make life much easier for at a hard time, but it wouldn't save any tax.

Robert
not a lawyer

[robertmlaws]

sorry, i think I calculated your first intallment of IHT wrong. It's nearer £320,000!

tax (£k) = (850+900-255)*0.4
1st installment = tax *(850+0.1*900)/(850+900)

= £321k to be paid to CTO BEFORE probate

R
not a lawyer

[pffitch@sayersb.co.u]

Squavy

There are many things that your mother could do but this is an emotive subject. It would be best to get her to vist a profesional.(possibily with you, possibily without you?)

If she is local to London I would be happy to meet her.

please give me a ring on 020 7935 8504

Paul
pffitch@sayersb.co.uk

[Taxbar]

Squavy,

there's lots your mother can do. She has to instruct anyone to act.

If you want assistance our practice operated nationally.

Daniel M Feingold
Barrister-at-law (NP)
Strategic Tax Planning
International & UK Tax Consultants

Treen House 72 Park Road,
Prestwich Manchester M25 OFA
E-mail: sedrate@easynet.co.uk

[topcom]

One often missed opportunity is for your mother to use her income to pay regular gifts to the family who in turn could pay into life policies which could meet the liabilities. The gifts must not be out of capital so the estate may be capable of reorganisation into higher income producing assets to achieve this result. We specialise in these matters A Mason & CO Ltd 023 8021 2037 Southampton office

[Huw Williams]

You are obviously looking for help.

Did you notice the "Find a professional" link in the "HELP" menu on the right of this page. It may help you find someone local to you.

Failing that, there are directories of accountants, tax advisers and solicitors on the web.

Huw Williams
217 Musters Road
West Bridgford
Nottingham
NG2 7DT

0115 914 6846

enquiries@huwwilliams.co.uk

[Bryn]

Hi.
Well done for considering the potential problem in good time. I am sure you are aware that Inland Revenue are clamping down on Inheritance Tax Planning schemes so you will need to carefully consider the options.
We find that most clients in your mothers situation require some form of ongoing income should they choose to gift away an asset. She may also like the potential to access capital that she may have chosen to gift away. Clients generally like to keep an element of 'control' over capital they have gifted, as it was of course their money in the first place. Finally, although you say your mother is healthy, the requirement to live 7 years before a Potentially Exempt Transfer is outside of her estate for Inheritance Tax consideration should be avoided if possible.
We operate a planning tool that can alleviate all of the above issues and I would suggest you contact us for details during your deliberations. As such my contact details follow.

Bryn Walker
Director
Silver Planet Advanced Tax Solutions
bryn@silver-planet.com
01922 745540

[teecee90]

Watch out, the vultures are circling overhead!

[agi@nghuk.co.uk]

There are a number of solutions to your problem, some will be expensive and convoluted whilst others may be cheap and straightforward. Whilst a trust and tax opinion is fine, to obtain a balance I suggest you contact a reputable Independent Financial Adviser, some of whom really specialise in this area. A packaged solution may be of interest , a good place to start would be to look at www.sofa.org, members of this society are normally amongst the best. A good adviser will offer you a choice of fees or commission and as mentioned, may provide you with an alternative opinion .Good luck