Tax planning before death and Inheritence Tax

funchal2

We have workde hard all our lives, we have built a business taking all the risk, worry and stress , paid corporation tax, paid income tax on our earnins, paid tax on the interest on our savings .... I am now being advised that if I die today my partner will have to oay HMRC £49,000.00 on my estate ...if she dies then it rises to £220,000.00 its disgraceful

My partner owns the property in the UK in her name only ( this was to ensure it was not taken from her in the event of me dying early) we are not married (although we have been together for 14 years which now seems to worka against us) ..we have a house overseas in both our names .. we have good liquid savings here in UK with the view of using this as retirement ...I am retired but still draw a wage my partner works and draws a wage

In essence I wanted a plan where Iif I die the house and home overseas remain my partners and the savings we accrued intacked if anything happened to her then it all goes to her sister /children
however this doesnt seem the case due to inheritene tax

Ideally what I should do is play the high life ..blow all the savings and then sell the house in UK and start all over again

Alternatively sell the UK house and emmigrate taking all the funds with me

Thirdly, change domicile status (from what I have read) and keep both ? I am British my partner although holiding a UK passport is African, does this allow her domicile to be her oriiginal country and how could that benefit us?

I have seen, spoke of, heard of variation wills, trusts, gifting, insurances, financial planners running the estate etc etc etc ...these seem very complex and hard to follow for me .... what would be a realistic approach in what I am trying to achieve that will gurantee protecting our homes and savings from being pillaged once again ?

any realistic guidance and suggestions appreciated

xylophone

If you have substantial assets between you and intend to remain unmarried, and wish to embark on IHT planning, it will be advisable to take expert advice?

A solicitor will help with your wills and should be able to advise you where to find advice on tax planning in the two fiscal systems.
http://www.step.org/online-directory

Mojisola

Getting married instantly gives you a threshold of £650,000 before you have to pay IHT. Half an hour at a register office - well worth the time.

noh

My suggestions are.
1. Get married.
2. Start spending more. There is no point in having worked to accumulate all those assets only to benefit someone else.

kidmugsy

funchal2 wrote: »

We have workde hard all our lives...

I don't understand why you are so self-righteously annoyed when the burden of your post is that you've mucked up your financial arrangements.

funchal2

Thank you for the feedback you have kindly given and offered. The marriage question is not an issue, and we are working towards this as a priority. With regards the comment from our learned friend who suggests we have made a muck up of our finances, thank you also, it puts matters into perspective that one should be an expert in all aspects of ones life, and to expect ridicule when asking or seeking advice !!!

macman

Until such time as you can find the time to get married, have you made a will? If not, and you should die tomorrow, your partner will inherit nothing, your estate will go to your children, if any, or otherwise to your siblings/parents.
But, as above, the remedy is very simple and will immediately double the threshold.
IHT is hardly new. It has been in place for 28 years, so why does this come as an apparent surprise to you now?
PS: your partner doesn't have to pay any IHT, the tax is levied on the estate, not on the beneficiaries.

kidmugsy

funchal2 wrote: »

expect ridicule when asking or seeking advice !!!

It's not the seeking of advice that invited the ridicule, it was the pomposity and bragging.