2006-10-16 07:48:57 · 10 answers · asked by busterdomino 4 in Politics & Government ➔ Law & Ethics
Settle the property into trust offshore as a lifetime gift to your wife and hope you live the seven years qualifying period.
2006-10-16 07:50:57 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Firstly, you won't pay IT on a property where it is left to your spouse. Secondly you won't pay IT where your are Joint Owners and one owner dies.
If you are worried about the tax your children will pay there is a threshold before IT kicks in. Currently that is £285,000.
The only way to avoid it is to legally give the house away (usually to your kids). After the house is given away the amount of tax payable decreases year on year so that after 7 years non is payable. However, if you still live there you have to enter into a formal Landlord and Tenant agreement with the person who owns the house AND pay market rent.
How you deal with the rental payments is a matter for you and the new owner, but remember, this income will be taxable.
1. Can you trust your kids not to turf you out?
2. Is your parent too old/paranoid/stuck in their ways to realise this is a good idea and once they are gone they don't need the money?
It's a perenial problem.
2006-10-16 08:03:42 · answer #2 · answered by andrew w 2 · 1⤊ 0⤋
From the answers, I'm not really sure if I understand your question. I set up a revocable living trust (with an attorney) for real property that I own, & understand inheritance taxes won't be an issue to anyone. It certainly wouldn't hurt to get some legal advice...
2006-10-16 17:28:21 · answer #3 · answered by Valac Gypsy 6 · 0⤊ 0⤋
you can leave the house on "Love and affection" to avoid the inheritance tax as it is given without exchange of monies.Check it out with a solicitor. I was told this by a solicitor.
2006-10-16 07:56:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
One way is to sign the house over to another member of your family. You need to trust them implicitly so that they cannot evict you. You also need to live a further 7 years after the deeds have been signed over otherwise I believe you still have some tax to pay.
2006-10-16 07:58:15 · answer #5 · answered by Jo 2 · 0⤊ 0⤋
Set up joint owenership so that you and your wife (or whoever) are co-owners of the house. Then whoever outlives the other will simply become the sole owner -- no inheritance involved.
2006-10-16 07:52:37 · answer #6 · answered by Dick Eney 3 · 0⤊ 0⤋
Get put on the deed as a co-owner now.
2006-10-16 07:51:13 · answer #7 · answered by ggraves1724 7 · 0⤊ 0⤋
If the house is in your name, transfer into joint name of your wife/husband then it would not form part of your estate.
2006-10-16 07:56:49 · answer #8 · answered by Ally 5 · 0⤊ 0⤋
If you want the goverment after you. Go ahead!
2006-10-16 07:56:23 · answer #9 · answered by alfonso 5 · 0⤊ 0⤋
give it to children before you die and rent it back for a penny a year.
2006-10-16 07:55:15 · answer #10 · answered by joseph m 4 · 0⤊ 1⤋