Inheritance Tax Planning?

TUVOK

I'm not sure if I have put this query on the correct board? but please put on correct board if in error.

I have not carried out my I.H.T. planning and so I need urgently to get this progressing.

I've done some basic calculations and I believe that due to my circumstances I will need professional help.
Thus can any member please advise me on a firm etc they have used themselves or know of a recommended firm etc from a friend/ relative.

Thanks for any/all replies, it will be much appreciated. 

Keep_pedalling

Lets just cover the basics before you go paying for advice

What is your marital status?
Do you have children?
What is your current net worth?

TUVOK

Divorced, two grown children, approx. £600K plus house, no mortgage. 

Albermarle

Is any of that £600K in a pension ?

eskbanker

TUVOK said:

I have not carried out my I.H.T. planning and so I need urgently to get this progressing.

I've done some basic calculations and I believe that due to my circumstances I will need professional help.

Care to share your workings, i.e. specifically what about your circumstances leads you to believe that you need to do some IHT planning (beyond the simple fact that you haven't done any) and that you'll need assistance for this?

Keep_pedalling

TUVOK said:

Divorced, two grown children, approx. £600K plus house, no mortgage. 

Assuming your house is worth at least £175k the you have £500k of IHT exemptions, so you estate is deep into IHT territory. Providing you don’t have life limiting illness, then maybe now is the time to make some serious gifts to your children. Gifting is the simplest way to potentially reduce your IHT liability, it may also be possible to cover an unfortunate early demise with a term life insurance policy.

Getting as much of your savings into a pension is the other obvious option.

TUVOK

Albermarle said:

Is any of that £600K in a pension ?

No money in a private pension.

TUVOK

eskbanker said:

TUVOK said:

I have not carried out my I.H.T. planning and so I need urgently to get this progressing.

I've done some basic calculations and I believe that due to my circumstances I will need professional help.

Care to share your workings, i.e. specifically what about your circumstances leads you to believe that you need to do some IHT planning (beyond the simple fact that you haven't done any) and that you'll need assistance for this?

Basically I have added up my asset's, no liabilities or mortgage or debts.
I know the allowances and so I believe I am liable for a lot of IHT unless I get my act together as I am now 78.
I suspect that I need professional help? please correct me if you believe that I can sort this situation out myself. 

Keep_pedalling

TUVOK said:

eskbanker said:

TUVOK said:

I have not carried out my I.H.T. planning and so I need urgently to get this progressing.

I've done some basic calculations and I believe that due to my circumstances I will need professional help.

Care to share your workings, i.e. specifically what about your circumstances leads you to believe that you need to do some IHT planning (beyond the simple fact that you haven't done any) and that you'll need assistance for this?

Basically I have added up my asset's, no liabilities or mortgage or debts.
I know the allowances and so I believe I am liable for a lot of IHT unless I get my act together as I am now 78.
I suspect that I need professional help? please correct me if you believe that I can sort this situation out myself. 

Unfortunately you have left IHT planning far too long and now your options are limited. The two main options left to you are gifting and (my favourite) spending on yourself. The former comes with the need to keep breathing for the next 7 years.

You could look at Enterprise Investment Scheme (EIS) investments which only require you to hold for 2 years before they become exempt though business property relief. These however are high risk investments, and I I were an in incoming Labour chancellor I would be abolishing that loophole. 

eskbanker

TUVOK said:

eskbanker said:

TUVOK said:

I have not carried out my I.H.T. planning and so I need urgently to get this progressing.

I've done some basic calculations and I believe that due to my circumstances I will need professional help.

Care to share your workings, i.e. specifically what about your circumstances leads you to believe that you need to do some IHT planning (beyond the simple fact that you haven't done any) and that you'll need assistance for this?

Basically I have added up my asset's, no liabilities or mortgage or debts.
I know the allowances and so I believe I am liable for a lot of IHT unless I get my act together as I am now 78.
I suspect that I need professional help? please correct me if you believe that I can sort this situation out myself. 

It's not a case of correcting, I was just trying to tease out more detail about your situation to ascertain what your options are likely to be, and the fact that you're 78 is important information!  In terms of that £600K of unspecified assets, will you be needing any of that to top up whatever income you're receiving, or does it represent what you'd anticipate leaving in your will, subject to funding care later on if necessary?

Anyway, as above there aren't too many obvious opportunities but, returning to your original question, you'd perhaps benefit from preliminary dialogue with some IFAs to ascertain whether there's anything they could suggest - my understanding is that the industry is fairly fragmented so your best bet is likely to be to find ones that are local to you rather than aiming for national players, so if you're hoping for specific recommendations from posters on here then it would be worth sharing where you live....

km1500

just be careful there are lots of so-called schemes out there that can claim to reduce your inheritance tax which only lead to trouble.

the best way is to give away money now and hope that you live seven years so that falls outside the inheritance tax calculation