I just wanted to be in the know really... i've not inherited anything yet and probably won't for a good long while to be honest.

How can someone avoid inheritance tax? (i've heard certain types of trusts?!)

And say someone's financial assets are mainly vested in property do more complications arise? like valuations etc?

Lastly, i've heard conservatives have decided to raise the threshold to £1mil?? Anyone shed some light on this?


thanks

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The best and simplest way to avoid IHT is to spend your money.

With assets in property your in a sticky wicket, even if these are assigned to someone.

Lets say if your parents put their house in your name, to completely mitigate IHT, they have to give you full market rent or this will be classed as an interest in possession and then liable for IHT.

No, you cannot take the rent from them and give it straight back as the HMRC will find out.

Trusts are mainly used in investments such as a loan trust and discounted gift plan to reduce IHT liability.

The conservatives said if they were in power they may raise the IHT threshold to 1mil.

hope this helps.
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Dane - P.

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What you can do is split say your parents property so that if one of them dies it doesn't get left to the other, but to one of the parents children, then when the remaining parent eventually dies, he/she doesn't leave a 100% share of the property to the children, the remaining parent only has 50% so thats all thats taxed if atall, obviously you need someone who specialises in inhertance tax laws to draw up a will and offer proper leagle advice.
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PEOPLE split the ownership of the property to utilise the nil rate band ie the allowance

the allowance is currently £312,000 per individual

there was a change in legislation last year in that if the allowance wasnt used on first death it can be claimed on second death

ie dad dies no trust planning or gifts made when mum dies you can claiher £312,000 and claim dads unused £312,000

if the estate is over £624,000 then trust planning will help reduce liability there is always the route of whole of life policy to provide funds to pay the tax bill
must be written in trust

pm e if you need any details

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