Re: Inheritance Tax

On Wed, 30 Aug 2006 10:21:36 +0100, John Boyle
<John@xxxxxxxxxxxxxxxxxxxxxx> wrote:

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.

Thanks for the detailed reply :-) I don't know the full detail at
present. I will ask when I next see them. They want to ensure that
the surviving partner can stay in the house (main asset) if one
partner dies first.

Mark
.

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