Inheritance tax

[glashIFA@Paramount]

Who assesses the value of the estate - if the house it is a dilapidated ruin - can you say it's worth only £250k because it's a ruin, but omit to mention that it stands in 3 acres and could be developed for millions - sell it to a limited company formed of the beneficiaries of the original estate and develop it yourself & trouser the profit?

… all hypothetically of course

Independant valuation required, unlikely to overlook 3 acres!!! Assuming owners are now dead the tax charge is levied on the estate before it comes to the beneficiaries.

[glashIFA@Paramount]

[QUOTE=rootsnall]

YIPPEE !!!!!! The sun has got his hat on ......................

Happy days.

[rootsnall]

[QUOTE=glashIFA@Paramount]

Happy days.

Edited the previous post too late.

Back to sensible for a minute while you are there. My Grandad is also still around and his will is 50% to me and 50% to my Dad. Is it correct that we can rejig the will ( with my Dad's consent ) on his death. In other words leave the lot to me if that makes sense.

[glashIFA@Paramount]

[QUOTE=rootsnall]

Edited the previous post too late.

Back to sensible for a minute while you are there. My Grandad is also still around and his will is 50% to me and 50% to my Dad. Is it correct that we can rejig the will ( with my Dad's consent ) on his death. In other words leave the lot to me if that makes sense.

Yep, a Deed of Variation gives you up to 2 years after death to alter the content of the will with the agreement of all beneficiaries.

[rootsnall]

[QUOTE=glashIFA@Paramount]

Yep, a Deed of Variation gives you up to 2 years after death to alter the content of the will with the agreement of all beneficiaries.

More yipees ! Thanks for your help.

[Clippy]

Yep, there are arrangements available that get some of the capital outside the estate from day 1 by way of a discount and there are planning opportunities that get all of the capital out of the estate after 2 years by using business property relief.

Interesting...

What is the current status of these planning opportunitites from the tax mans perspective? Are they valid (legal) schemes which would hold up if challenged, have there been any challenges and what are the chances of the tax man 'reviewing' their status?

Also, what type of access do they allow to any assets?
I would imagine a scheme like this comes at a trade off against limited access/future income.

[glashIFA@Paramount]

[QUOTE=rootsnall]

More yipees ! Thanks for your help.

My pleasure - hope it was useful. Contaact me direct if you need any specifics.

[glashIFA@Paramount]

Interesting...

What is the current status of these planning opportunitites from the tax mans perspective? Are they valid (legal) schemes which would hold up if challenged, have there been any challenges and what are the chances of the tax man 'reviewing' their status?

Also, what type of access do they allow to any assets?
I would imagine a scheme like this comes at a trade off against limited access/future income.

Perfectly legal, been around for years. Interestingly enough, as with all these type of schemes, they have been challenged but Revenue conceed there are no problems. Some slight changes in last pre budget report but nothing significant, just to do with levels of investment. This should demonstrate that Revenue not looking to do away with them as they've had years to do so.

With regard to access - depends on scheme used. Can have full access to capital if req'd although it will then revert back to estate for IHT purposes.

[Bradley]

Charges

Perfectly legal, been around for years. Interestingly enough, as with all these type of schemes, they have been challenged but Revenue conceed there are no problems. Some slight changes in last pre budget report but nothing significant, just to do with levels of investment. This should demonstrate that Revenue not looking to do away with them as they've had years to do so.

With regard to access - depends on scheme used. Can have full access to capital if req'd although it will then revert back to estate for IHT purposes.

Saw an article in the Times about these discounted schemes. Seems that all the IFA boys are getting excited by the level of initial commission that can be charged - 5% to 7%. The age of the person doing the gifting and their health are an issue too as well as a potential 20% tax charge if structured incorrectly. Any comments to make about that?

[Clippy]

Saw an article in the Times about these discounted schemes. Seems that all the IFA boys are getting excited by the level of initial commission that can be charged - 5% to 7%. The age of the person doing the gifting and their health are an issue too as well as a potential 20% tax charge if structured incorrectly. Any comments to make about that?

Bradley - any links to this article?