Re: Inheritance Tax

In message <2mhaf2toggknr85tfcd1malb0je73vm8ol@xxxxxxx>, Mark <nospam@xxxxxxxxxxx> writes
I like IHT. It taxes the dead, which I like. It taxes only the
thoughtless dead, because anyone with any regard for their dependants
can wriggle out of it if they choose.

How? I thought Gordon Brown has closed all those loopholes.

No, not at all, in fact he has raised their profile. There are still
loads of tricks.

Please share this information. My parent is struggling to know what to
do now.

They can largely do what was available before. Have they written wills using a Nil Rate Band IOU Discretionary Trust? Depending on the value of their assets the tenancy of the domestic house may need to be severed.

If there are investments then Discounted Gift Trusts will get dosh out of their estate and provide them with a lifetime income, but this would be a PET and the seven year rule applies but if death occurred within seven years then the discounted value of the reversionary element would be deducted from the gift value before being be added back into the estate. Depending on their age and state of health substantial amounts can be used here without triggering Gordon's new tax regime on such trusts because it is the discounted value, not the actual value) which is used as a trigger for LIfetime IHT.

Back to back annuity/LIfe policy in trust will get a large amount of dosh out of the estate instantly but the beneficiaries wont get it until the second life dies.

Second death whole of life plans, either single or regular premium, can be used to pay the IHT if there are large tangible assets in the assets.

These are just some initial ideas, hope this helps.
--
John Boyle
.

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