How can a widow get her children to avoid inheritance tax?
2006-12-07 07:23:38 · 6 answers · asked by fredbab 1 in Business & Finance ➔ Taxes ➔ United Kingdom
my dads done this for us.
You need to distribute your funds carefully in trusts and stocks.
Ask an independant financial advisor (who usually dont charge you, but charge the financial companies for bringing them business) to get a better idea.
They will give you the best advice.
2006-12-07 07:28:44 · answer #1 · answered by lovethesun 3 · 0⤊ 0⤋
First of all inheritance tax is a state issue. You need to see if your state has an inheritance tax.
I assume that you are talking about the estate tax. There is a federal exemption from estate tax in the amount of $2,000,000. So if mom's estate is less than this then a simple will would suffice. A revocable trust as a will replacement would help to avoid probate which is a local court issue. If her estate is greater than $2,000,000 then you should really seek the help of an estate attorney.
I would never use a financial adviser as they are not independent as to what they will offer to do for you and your mother.
Finally don't ever fall for the belief that the financial ad visor doesn't charge you. Any fees paid to them come out of your money, the charges are hidden so that you don't know what you are paying unless you read the fine print. The investments they put you into will have an upfront charge or a back end charge, they will also have a fee called a 12(b)(1) fee that is charged against your account each year and finally the fund company will have an expense charge that is taken out of you account each year as well. Nothing in life is free and insurance companies and financial companies use your money to pay everyone involved before you see any income or gain in your investments. To think otherwise is naive and juvenile.
2006-12-07 12:14:54 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
my nan has done this recently. she put it into trust funds for her children to avoid inheritance tax. i think its disgusting personally how the government want to take tax from inheritance money - like they don't have enough money! i think it should be scrapped and i think the fat cats in downing streets should just leave us alone!
2006-12-07 08:14:06 · answer #3 · answered by hunny_bun15 1 · 1⤊ 0⤋
There is planning available, but you need to seek the advice of an IFA. This is important as there are solutions which involve reducing or avoiding the tax, but may cause loss of control of the monies. There are too many options to discuss here, so please seek indpendent advice.
2006-12-08 08:07:39 · answer #4 · answered by Linda 6 · 0⤊ 0⤋
Put it into a trust for them, this is now possible see your lawyer he will set it up. there are alot of people doing it to avoid BRown getting it
2006-12-07 07:40:32 · answer #5 · answered by john r 4 · 0⤊ 0⤋
Split it up,give it to other people, with an agreement to return it to your kids.I think you only get taxed on 280000 pounds and up.
2006-12-07 07:31:28 · answer #6 · answered by Big Bruv 2 · 0⤊ 0⤋