How to avoid inheritance tax?

PennyForThem_2

quietriot wrote: »

What's your opinion on state benefits?

Although I did not vote Conservative, I actually think that the principle to ensure working pays more than living off the state is a good one.


There is a conundrum around disability - some disabled work and have well paid jobs, others the whole health issue is more complex.

Keep_pedalling

wallbash wrote: »

Very sensible, those that are objecting, are not looking forward to an inheritance. So lets put down their remarks to jealousy.

Let them put their non existent inheritance to charity / state etc.
As you might gather I am in a similar position as your self and the OP.

Time to have a VERY serious talk with mum/dad.

How wrong can you be, our estate has the potential to be hit with quite a large IHT bill, but our children will still be receiving a considerable inheritance which is free unearned money to them, and personally I don't see why someone receiving a large dollop of unearned income should pay no tax, while money you work for is taxed.

Yes we have reduced the amount that may need to be payed, by paying off their student loans, gifting them deposits for their first homes and gifting annually. We also have substantial charity gifts in our wills, but their is still a considerable tax liability sitting there and we are comfortable with that. If in our dotage we both need long term care in a home of our chosing then most of that might disappear.

Not everyone with a small degree of wealth has such a Thatcherite outlook on life.

getmore4less

Keep_pedalling wrote: »

personally I don't see why someone receiving a large dollop of unearned income should pay no tax, while money you work for is taxed.

Yes we have reduced the amount that may need to be payed, by paying off their student loans, gifting them deposits for their first homes and gifting annually. We also have substantial charity gifts in our wills, but their is still a considerable tax liability sitting there and we are comfortable with that. If in our dotage we both need long term care in a home of our chosing then most of that might disappear.

Not everyone with a small degree of wealth has such a Thatcherite outlook on life.

It OK for you to give shedloads on money to others without them paying tax but others that may be giving less away overall their recipients should pay tax.

very much a I am so wealthy it's ok to tax those not so wealthy attitude.

Keep_pedalling

getmore4less wrote: »

It OK for you to give shedloads on money to others without them paying tax but others that may be giving less away overall their recipients should pay tax.

very much a I am so wealthy it's ok to tax those not so wealthy attitude.

No I don't think that at all, and anyone in the situation you describe would still have been in a strong financial position to take similar action if they had children who needed help. Our parents helped us when we needed it, and we have done the same for them. Yes this potentially reduces our IHT liability (who knows what tax regime will be in place in 10-20 years time) but that was not the reason for doing it.

I do actually think IHT needs reforming and made fairer, but not by the stupid idea that houses get treated differently to other assets which seems to be the only idea on the table at the moment.

kidmugsy

Make IHT 10%, nil rate band £50k, and stop virtually every way of avoiding it. Only a fool would risk ruin to try to avoid a 10% tax.

zygurat789

kidmugsy wrote: »

Make IHT 10%, nil rate band £50k, and stop virtually every way of avoiding it. Only a fool would risk ruin to try to avoid a 10% tax.

Why risk it indeed the rich have just had a significant tax cut.
What are HMRC going to use to pay all the extra staff required to process all the extra piffling estates.

enjoyyourshoes

Buy woodland
Taper relief linked to gift is worth having a serious conversation about.
I am sure there is something about single equity investments in AIM???

enjoyyourshoes

http://www.ft.com/cms/s/0/65d0a798-6985-11e4-9f65-00144feabdc0.html#axzz3eS8Ng43T


IHT and AIM investments
Sounds complex and not without a degree of risk.

sleepless_saver

If her income is high enough to make regular gifts without affecting her standard of living, then those gifts would be exempt from the usual £3k limit.
https://www.gov.uk/inheritance-tax/gifts

kidmugsy

PennyForThem wrote: »

I want to make sure my kids inherit as much as possible, and not the state.

Then how is the state to afford the bombing of a haphazard selection of foreign nations?