If a property being passed on after someone has died is valued at above the threshold of £285, 000 (England). How do I legally find loopholes to avoid the taxman getting hold of any of this money? House prices nowadays do not reflect incomes so it's not as if I'm asking an unfair question.
2007-06-14 09:34:27 · 11 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
One way to avoid this is to transfer the money or property to the person who stands to inherit it before death, or to put it in joint names. Also, many people set up family trusts to avoid paying large inheritance taxes. An attorney who specializes in wills, trusts, and estates should be able to set this up.
2007-06-14 09:38:52 · answer #1 · answered by Jenn 2 · 3⤊ 0⤋
If you gift it you pay a tax but it is smaller than the estate taxes paid out after death.
Look into putting a life insurance policy into trust so it is untaxable. Then when the person dies the money will be untaxed and you can use that money to pay off the estate taxes. If the policy is big enough you can pay off all the taxes with it and the inheritance will remian untouched.
2007-06-14 09:43:46 · answer #2 · answered by kcbf 5 · 0⤊ 0⤋
If it is your property some one else will be paying the tax. Other wise you could re-mortgage and leave the money in a tin box. But keep your eye on your back with regard to the beneficiaries.
2007-06-14 09:47:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
In the UK, tax avoidance is a criminal offence.
Organising your affairs to reduce your tax liability is, however, lawful.
There is a crucial difference, as your future cell-mate may no doubt explain to you.
Apart from that the answers above are broadly accurate.
2007-06-14 10:23:00 · answer #4 · answered by JZD 7 · 1⤊ 0⤋
lindy is spot on with this one, anything gifted seven years prior to death is not taxable under inheritance laws. I don't know of any loopholes to avoid paying if the seven year criteria has not been met.
JZD is wrong...Tax EVASION is against the law, tax AVOIDANCE is part of an accountants job.
2007-06-14 21:40:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
live forever or die poor... gift the house away at least 7 years before you intend to die - i think its 7 but basically if you can give away as much as you can before then you can avoid leaving a tax bill behind...
2007-06-14 09:39:13 · answer #6 · answered by i give up 5 · 1⤊ 0⤋
Incorporate!
2007-06-14 09:40:26 · answer #7 · answered by ShadowCat 6 · 0⤊ 2⤋
Give away almost all your money before you die. Check with your lawyer to make sure you're not passing on tax burdens to those who you give to.
2007-06-14 09:40:00 · answer #8 · answered by SallyJM 5 · 0⤊ 2⤋
Jenn has the right answer.
2007-06-14 09:50:23 · answer #9 · answered by surffsav 5 · 0⤊ 0⤋
i would just pay it, as they will get it in the end,all the best
2007-06-14 10:13:56 · answer #10 · answered by Anonymous · 1⤊ 0⤋