im after something for my dad to put money into to avoid the whole inheritance tax scandal!! my house alone is beyond the limit for inheritance tax limit!! any advice for what my dad can do to avoid me becoming devoid of the life i have become accustomed to????? bank accounts etc! my premium bonds are already at their limit before you suggest that!!!
2007-02-06 13:42:58 · 6 answers · asked by PInky without perky!! 4 in Business & Finance ➔ Taxes ➔ United Kingdom
If he has sufficient funds, get him to go to an accountant to work out the amount of IHT that is likely to be due. He can then start a whole of life insurance policy that will cover this Tax. The policy is written so the proceeds are paid to a Trust, so does not form part of his estate and therefore is not, of itself, subject to IHT. You will then be able to inherit his wealth in total.
PS. bank accounts and premium bonds are of no help in IHT planning since they just form part of the deceased's estate.
2007-02-09 06:18:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The only way for your dad to avoid Inheritance Tax is for him to give his money away now and then live for 7 years. I don't see what the value of your house and your investments has to do with it as his estate would only pay IT on the value of his estate when he dies.
2007-02-06 19:31:19 · answer #2 · answered by fengirl2 7 · 1⤊ 0⤋
He could put the money in the barbeque, thus avoiding you having to pay any tax, and the citizens of your country benefiting. Maybe then you will be able to accustom yourself to a different way of life.
2007-02-06 21:48:40 · answer #3 · answered by Alan A 3 · 0⤊ 0⤋
Isn't it nice to have so much money you don't know what to do with it !
I suggest he sells up and emigrates to a Country that doesn't steal your inheritance ...
An alternative would be to give you the House, pay you rent and survive for 7 years.
2007-02-06 19:31:20 · answer #4 · answered by Steve B 7 · 0⤊ 0⤋
Tell him to invest in something which gets 100% business relief for IHT.
This will be any private limited company where he is a shareholder, or other assets such as furnished holiday lettings. This avoids having to wait seven years for it to be clear.
2007-02-08 07:41:26 · answer #5 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋
There are quite a few, but most of the interest is in the form of a bonus for new customers. You then move your money to a different provider.
2016-05-24 01:35:51 · answer #6 · answered by ? 4 · 0⤊ 0⤋