Daughter's shock as parents' £1.5m farm is left to the RSPCA

[gingerjedi]

My wife's dad has bought a collection of vintage motorcycles in an effort to avoid inheritance tax, his double garage looks like a museum.

Not sure how this helps unless they are all registered in other family members names, anyone know or is he just mad??

[Moscow Mule]

is he just mad??

You'd be in a better position to judge that wouldn't you?

[gingerjedi]

You'd be in a better position to judge that wouldn't you?

He's mad at the thought of the tax man getting hold of huge wads of cash that he spent his entire life earning, he also buys a new Merc every year so I imagine Mercedes do quite well out of people like him.

[TheFaQQer]

My wife's dad has bought a collection of vintage motorcycles in an effort to avoid inheritance tax, his double garage looks like a museum.

Not sure how this helps unless they are all registered in other family members names, anyone know or is he just mad??

If they are in his name, it won't help. If they are in other people's names, then it might help depending on the cost of the bike, and how long he lives after giving the money.

ISTR that there is a £7500 a year limit that can be given away tax free to family members to come out of your estate.

[King Cnvt]

My mum lives in a council house and has £400 in savings.

Should I be worried about inheritence tax?

[TheFaQQer]

I could maybe do with a new car she says, now we are talking thinks I wondering which BMW or Merc she might like - she continues - a friend has just bought a Kia Cee'd and it's really nice !

One of my parents financial advisers told them to get a new car last year, as they might as well spend the money.



Skoda Octavia. He did say to them afterwards that it was hardly pushing the boat out!

[ChimpMaster]

I think it's a bit cynical of HMRC to try and tax transfers of wealth between family members. After all, what if I was a millionaire (well, ok a multi-millionaire then...), and wanted to give my dad £100k to pay off his mortgage? Then what, would that be taxable under HMRC's eyes?

And then what of the opposite, where parents help their children to buy a house by giving them £100k for a deposit?

Surely we should be fostering good family values rather than basing them on financial decisions and obligations.

[TheFaQQer]

I think it's a bit cynical of HMRC to try and tax transfers of wealth between family members. After all, what if I was a millionaire (well, ok a multi-millionaire then...), and wanted to give my dad £100k to pay off his mortgage? Then what, would that be taxable under HMRC's eyes?

And then what of the opposite, where parents help their children to buy a house by giving them £100k for a deposit?

Surely we should be fostering good family values rather than basing them on financial decisions and obligations.

Yes, it's taxable, in both situations.

[King Cnvt]

You need to stop thinking of money you have earned as "your money". It isn't your money, it is just money New Labour have let you keep until you die, when you then have to give it back in a final tax.

Only "fair".

[robnjc]

My stepfather died in February. He left a large sum in trust for my mother to draw an income from the interest, but for which the capital reverts to his own family on her death.

What he neglected to mention was that the capital gets counted in her estate so me and my brother get caught for the IHT!!!! B*str*d. Never did like him.

Fortunately his son is a lot more reasonable and is in the process of changing the nature of the trust so I'm not liable.