'Elephant in the room' question re IHT !

Malthusian

Linton said:

Is shoplifting OK if the staff don’t see you? 

Yes, because shops make loads of money, and they exploit the poor, and it's a victimless crime, like punching someone in the dark. -Shoplifters, probably

silvercar

Keep_pedalling said:

uknick said:

silvercar said:

uknick said:

silvercar said:

uknick said:

castle96 said:

I wonder re this as well. The temptation to 'save' tax must be overwhelming (though a risk {plus a fine?})

If they could prove the executor knew about the gifts, I think it would become tax evasion which can result in a custodial sentence.  But, to get a sentence you would have to be really, really stupid and not cooperate with HMRC.

and if the executor is a solicitor?

Not sure what your point is?  Do you think solicitors are immune from prosecution?

I was thinking that some people only go to a solicitor when they have reason to. So in their whole lifetime they may only have used a conveyancing solicitor when they have bought or sold a home and a solicitor specialising in probate and wills when they wanted to write a will. As such the solicitor will only know as much as the deceased has told them. They may be unaware of all the savings accounts/ works of art/ classic cars/ wine/ property etc.

It may even be that the deceased deliberately chooses a solicitor that they have had no previous contact with, to leave their offspring to decide what should be declared.

No offence by the solicitor if they are in the dark about any gifts.  I suppose they might have to show due diligence in that they made an effort to look into gifts, but if the client tells them there were none what can they do. 

A solicitor is not simply going to take the clients word on something that could land them with financial penalties.

uknick said:

Keep_pedalling said:

uknick said:

silvercar said:

uknick said:

silvercar said:

uknick said:

castle96 said:

I wonder re this as well. The temptation to 'save' tax must be overwhelming (though a risk {plus a fine?})

If they could prove the executor knew about the gifts, I think it would become tax evasion which can result in a custodial sentence.  But, to get a sentence you would have to be really, really stupid and not cooperate with HMRC.

and if the executor is a solicitor?

Not sure what your point is?  Do you think solicitors are immune from prosecution?

I was thinking that some people only go to a solicitor when they have reason to. So in their whole lifetime they may only have used a conveyancing solicitor when they have bought or sold a home and a solicitor specialising in probate and wills when they wanted to write a will. As such the solicitor will only know as much as the deceased has told them. They may be unaware of all the savings accounts/ works of art/ classic cars/ wine/ property etc.

It may even be that the deceased deliberately chooses a solicitor that they have had no previous contact with, to leave their offspring to decide what should be declared.

No offence by the solicitor if they are in the dark about any gifts.  I suppose they might have to show due diligence in that they made an effort to look into gifts, but if the client tells them there were none what can they do. 

A solicitor is not simply going to take the clients word on something that could land them with financial penalties.

Agreed, which is why the client will need to sign the solicitor's terms of business which will include some form of clause indemnifying the solicitor in case the client has been economic with the truth.  Hence my comment about due diligence from the solicitor.

The client in this case would be the deceased, who may not have seen their solicitor since they wrote the will many years ago.

Malthusian

The client in this case would be the deceased, who may not have seen their solicitor since they wrote the will many years ago.

Only if the solicitor is the executor, in which case they have the power to directly obtain the client's bank statements etc, and make all reasonable efforts to uncover any gifts.

If the solicitor has been hired by the executors then the clients are the executors.