Hi
I have an elderly grandmother who's estate is going to get clobbered by Gordan 'the fat controller' brown. She is a widower and Her Inheritance tax liability is £136,000 which sickens me. She had made next to no IHT planning and she's 86. She is in reasonable health, but I do not know whether she had another 7 years in her.
I have been researching the IHT avoidance schemes and wanted to see if any bright people had any suggestions.
She has used up her annual exemptions of £3000. Her house held jointly in her name and her son's (my uncle) who lives in the property with her. She has a large share portfolio which she receives dividends but very little expenditure.
My thoughts are
1) make as may small gift of £250 before the new tax year starts.
2) Gift away £3000 in the new 07/08 tax year.
3) Pay her the family's Council tax bill out of her income from dividends which would not lower her standard of living.
4) Assign proceeds of her dividends to my mother. Holding some to maintain her standard of living
5) Gift away antiques etc, writing a memorandum of intent and date transfer made.
6) Put her proportion of property in a discretionary trust.
7) Re write her will so more of the estate passes to the grandchildren (Obviously I'd be happy with this!!!) to avoid a double hit of Inheritance tax.
8) Get her to marry the Postman, pass on her estate, then hope he doesn't do a runner!!
Does this planning sound prudent?
Would point 3 work if it she made payment on a regular basis? I have read that Trusts came under attack in the last budget. Does this mean they are no longer viable? Should I encourage her to re mortgage part of the house and gift the proceeds away in the hope she lives 7 years???
Anyone got and good ideas? Or should I see professional tax planning advise?
The other thing that worries her is she will have to pay large costs if she needs medical care. This has been a stumbling block in trying to get her to dish out her wealth.
Any thoughts appreciated....
The skint Grandson who has just about two pennies to rub together.
I have an elderly grandmother who's estate is going to get clobbered by Gordan 'the fat controller' brown. She is a widower and Her Inheritance tax liability is £136,000 which sickens me. She had made next to no IHT planning and she's 86. She is in reasonable health, but I do not know whether she had another 7 years in her.
I have been researching the IHT avoidance schemes and wanted to see if any bright people had any suggestions.
She has used up her annual exemptions of £3000. Her house held jointly in her name and her son's (my uncle) who lives in the property with her. She has a large share portfolio which she receives dividends but very little expenditure.
My thoughts are
1) make as may small gift of £250 before the new tax year starts.
2) Gift away £3000 in the new 07/08 tax year.
3) Pay her the family's Council tax bill out of her income from dividends which would not lower her standard of living.
4) Assign proceeds of her dividends to my mother. Holding some to maintain her standard of living
5) Gift away antiques etc, writing a memorandum of intent and date transfer made.
6) Put her proportion of property in a discretionary trust.
7) Re write her will so more of the estate passes to the grandchildren (Obviously I'd be happy with this!!!) to avoid a double hit of Inheritance tax.
8) Get her to marry the Postman, pass on her estate, then hope he doesn't do a runner!!
Does this planning sound prudent?
Would point 3 work if it she made payment on a regular basis? I have read that Trusts came under attack in the last budget. Does this mean they are no longer viable? Should I encourage her to re mortgage part of the house and gift the proceeds away in the hope she lives 7 years???
Anyone got and good ideas? Or should I see professional tax planning advise?
The other thing that worries her is she will have to pay large costs if she needs medical care. This has been a stumbling block in trying to get her to dish out her wealth.
Any thoughts appreciated....
The skint Grandson who has just about two pennies to rub together.
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