Inheritance tax
Discussion
jayx73 said:
Me and the better half have been happily together for a few years now with the house and a rental property in joint names.
Is there another option apart fromtying the knot to avoid the inheritance tax liability of one of us moved to the scrapyard in the sky .
If you own the properties as joint tenants (rather than tenants in common with specified percentages owned), if one of the owners dies, the other will receive the full title of the property without paying inheritance tax, however, you will not be able to leave your rights in the property to anyone else in your will. Is there another option apart fromtying the knot to avoid the inheritance tax liability of one of us moved to the scrapyard in the sky .
More info here:
https://www.gov.uk/joint-property-ownership/overvi...
QuickQuack said:
jayx73 said:
Me and the better half have been happily together for a few years now with the house and a rental property in joint names.
Is there another option apart fromtying the knot to avoid the inheritance tax liability of one of us moved to the scrapyard in the sky .
If you own the properties as joint tenants (rather than tenants in common with specified percentages owned), if one of the owners dies, the other will receive the full title of the property without paying inheritance tax, however, you will not be able to leave your rights in the property to anyone else in your will. Is there another option apart fromtying the knot to avoid the inheritance tax liability of one of us moved to the scrapyard in the sky .
More info here:
https://www.gov.uk/joint-property-ownership/overvi...
Nil rate band trust is what you want.
Speak to a solicitor who is a member of http://www.step.org/ who will be able to properly advise you.
Speak to a solicitor who is a member of http://www.step.org/ who will be able to properly advise you.
jayx73 said:
Me and the better half have been happily together for a few years now with the house and a rental property in joint names.
Is there another option apart fromtying the knot to avoid the inheritance tax liability of one of us moved to the scrapyard in the sky .
Why not just tie the knot? Half an hour at the registry office, couple of people to sign the paperwork, don't bother to change names. Job jobbed. No need for the tens of grands on meringue etc.Is there another option apart fromtying the knot to avoid the inheritance tax liability of one of us moved to the scrapyard in the sky .
Not sure you could get away with doing this now. A wealthy friend of the family was selling his house in the early 00's around 10 years before he died. House was being sold for well over a million even then and keen to avoid inheritance tax he told his sons to meet at his solicitors office.
He divided up his estate between them within a hour and sold them each part for the princely sum of £1. Got it all signed and sealed with the solicitor.
When he died sum years later and not one penny of inheritance tax was paid.
He divided up his estate between them within a hour and sold them each part for the princely sum of £1. Got it all signed and sealed with the solicitor.
When he died sum years later and not one penny of inheritance tax was paid.
Edited by BlueHave on Monday 11th July 15:22
BlueHave said:
Not sure you could get away with doing this now. A wealthy friend of the family was selling his house this is about 10 years before he died. House was being sold for well over a million and keen to avoid inheritance tax he told his sons to meet at his solicitors office.
He divided up his estate within a hour and sold them each part for the princely sum of £1.
When he died sum years later and not one penny of inheritance tax was paid.
7 year rule would apply whereby 7 years as passed.He divided up his estate within a hour and sold them each part for the princely sum of £1.
When he died sum years later and not one penny of inheritance tax was paid.
As long as he didn't benefit from the asset during this period, then it is above board.
BlueHave said:
Not sure you could get away with doing this now. A wealthy friend of the family was selling his house this is about 10 years before he died. House was being sold for well over a million and keen to avoid inheritance tax he told his sons to meet at his solicitors office.
He divided up his estate within a hour and sold them each part for the princely sum of £1.
When he died sum years later and not one penny of inheritance tax was paid.
There's a sliding scale of IHT liability over seven years for gifts over a certain amount, so 10yrs later would still be in the clear.He divided up his estate within a hour and sold them each part for the princely sum of £1.
When he died sum years later and not one penny of inheritance tax was paid.
In the meantime, though, if one of those sons had got messily divorced or gone bankrupt, that share of the house would be up for grabs as part of their assets.
TooMany2cvs said:
In the meantime, though, if one of those sons had got messily divorced or gone bankrupt, that share of the house would be up for grabs as part of their assets.
This.I'd be quite happy for my 2 sons to each own 50% of my house. But in a few years I might have 2 ex daughters in law owning 25% each!!!
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