Inheritance Tax: Save £100,000s with simple advanced planning Article Discussion

John_Pierpoint

CTA wrote: »

In my experience, with lawyers you pretty much get what you pay for.

My wife has had an incredible difficulty getting money out of a trust that she is entitled to, because her grandfather used a very cheap solicitor.

TBH, for the set up cost and drafting all that, £500 sounds very low to me.

How did grandfather get it "wrong"?

CTA_2

John_Pierpoint wrote: »

How did grandfather get it "wrong"?

Chose a poor lawyer whose inadequate service and professional ability was reflected in the low fees paid.

John_Pierpoint

As someone who was lumbered with a partially intestate solicitor drafted will, in similar circumstances, I've been there and got the scars;)

[In my case the deceased left money to his two sisters but forgot to say what would happen to it, if they died before he did.].

So what was the technical "mistake" made in drafting grandfather's trust?

CTA_2

John_Pierpoint wrote: »

As someone who was lumbered with a partially intestate solicitor drafted will, in similar circumstances, I've been there and got the scars;)

[In my case the deceased left money to his two sisters but forgot to say what would happen to it, if they died before he did.].

So what was the technical "mistake" made in drafting grandfather's trust?

Oh sorry, no technical mistake with the drafting! The solicitor just wouldn't get round to transferring the money! Only excuse i can see is bone idle laziness!

haradoka

My father believes that he will be able to avoid inheritance tax on his financial assets over £325K by opening separate joint bank accounts with my brother and I. (We are the only family members who stand to inherit.) He thinks that when he dies, the money in either account will simply pass to the surviving joint account holder and not be liable for tax. Is this correct?
Thanks in advance for any comment.

jem16

haradoka wrote: »

Is this correct?

No it isn't. It will still form part of the estate.

haradoka

OK, Thanks. That's what I thought. But how would the tax authorities get to know of these proposed joint accounts if we don't tell them?

jem16

haradoka wrote: »

OK, Thanks. That's what I thought. But how would the tax authorities get to know of these proposed joint accounts if we don't tell them?

Are you planning to commit tax evasion which is illegal?

Banks will not normally release funds until death certificates and, if necessary, probate has been sorted. Anything done before that is committing fraud.

haradoka

No, I'm not planning to evade tax. Just playing devil's advocate on behalf of my father who thinks that this is a good way to avoid tax. I think he is wrong, but I can't convince him to make proper arrangements for any potential inheritance tax liabilty.

jem16

haradoka wrote: »

No, I'm not planning to evade tax. Just playing devil's advocate on behalf of my father who thinks that this is a good way to avoid tax. I think he is wrong, but I can't convince him to make proper arrangements for any potential inheritance tax liabilty.

Remind him that it would also put you into difficulties as these savings would then count against you should you need to have any means tested benefits.