Pass on assets (inheritance) while alive

Kanthri

One of my friend want to pass on his assets to his children while he is still alive! So, how does this type of inheritance work?

[My friend want to spend his final days/years as a monk wandering places and with complete detachment from his current world. This would mean, even when he dies, it is unlikely his children will come to know about. What are his options -- to handover the assets to children before he leaves? Or, will children be able to claim inheritance after certain duration if they have not heard from their father?]

artyboy

Oh boy, that's a good one to start off a wet Tuesday...

Simply though, if he divests his assets to his family, and lives another 7 years, then there will be no IHT to pay. 

FlorayG

It's not an inheritance, it's a gift. He can give stuff he owns to anyone while he is alive, and as said above, if he lives 7 years after the gift then said gift is free of all taxes

elsien

Yep. There is no inheritance until after he passed away. And lovely though he thinks it might be to be a wandering monk what happens if he gets old and ill and is unable to look after himself? Would he be relying on the systems and charity of whatever place he happens to be in at the time?

Without knowing the backstory, divesting himself of his wordly goods  is one thing, divesting himself  of his children unless there’s been a family falling out seems a tad extreme. 

LHW99

Presumably he would have to be accepted for a novitiate first, before "wandering". That perhaps means worldly goods have to be handed to the (Benedictine, Franciscan, whatever) organisation when joining?

elsien

LHW99 said:

Presumably he would have to be accepted for a novitiate first, before "wandering". That perhaps means worldly goods have to be handed to the (Benedictine, Franciscan, whatever) organisation when joining?

I was guessing he didn't have anything that formal in mind. Possible also depends on which country or countries he plans to wander around?

DullGreyGuy

Kanthri said:

One of my friend want to pass on his assets to his children while he is still alive! So, how does this type of inheritance work?

[My friend want to spend his final days/years as a monk wandering places and with complete detachment from his current world. This would mean, even when he dies, it is unlikely his children will come to know about. What are his options -- to handover the assets to children before he leaves? Or, will children be able to claim inheritance after certain duration if they have not heard from their father?]

They are gifts, assuming he is giving away more than £3k per year then it comes down to when he dies. If it's within 7 years of giving some of the gifts then their value will be considered part of the estate for the calculation of IHT on a sliding scale basis. 

There are other considerations however if his health deteriorates before his death and care is required

Marcon

Kanthri said:

One of my friend want to pass on his assets to his children while he is still alive! So, how does this type of inheritance work?

[My friend want to spend his final days/years as a monk wandering places and with complete detachment from his current world. This would mean, even when he dies, it is unlikely his children will come to know about. What are his options -- to handover the assets to children before he leaves? Or, will children be able to claim inheritance after certain duration if they have not heard from their father?]

Assuming this is a real question and not a wind up....

Maybe he should learn to use Google? Or better still get some professional advice, since it sounds as if he's about to leave an almighty mess for his poor children to sort out.

LinLui

Marcon said:

Kanthri said:

One of my friend want to pass on his assets to his children while he is still alive! So, how does this type of inheritance work?

[My friend want to spend his final days/years as a monk wandering places and with complete detachment from his current world. This would mean, even when he dies, it is unlikely his children will come to know about. What are his options -- to handover the assets to children before he leaves? Or, will children be able to claim inheritance after certain duration if they have not heard from their father?]

Assuming this is a real question and not a wind up....

Maybe he should learn to use Google? Or better still get some professional advice, since it sounds as if he's about to leave an almighty mess for his poor children to sort out.

And, with respect, he may need to prove that he is of sound mind in making such a decision because it isn't exactly "common". If things go badly for him, it may well be necessary to prove that he was of sound mind and not coerced into handing over his assets.

Marcon

LinLui said:

Marcon said:

Kanthri said:

One of my friend want to pass on his assets to his children while he is still alive! So, how does this type of inheritance work?

[My friend want to spend his final days/years as a monk wandering places and with complete detachment from his current world. This would mean, even when he dies, it is unlikely his children will come to know about. What are his options -- to handover the assets to children before he leaves? Or, will children be able to claim inheritance after certain duration if they have not heard from their father?]

Assuming this is a real question and not a wind up....

Maybe he should learn to use Google? Or better still get some professional advice, since it sounds as if he's about to leave an almighty mess for his poor children to sort out.

And, with respect, he may need to prove that he is of sound mind in making such a decision because it isn't exactly "common". If things go badly for him, it may well be necessary to prove that he was of sound mind and not coerced into handing over his assets.

Come to think of it, if he's a monk as OP says he wants to be, he can't own any property, so he'll have to dispose of all his assets before he starts his wanderings.

Yorkie1

The usual rule is that you have to wait 7 years before starting the process to get someone declared legally dead and thus distribute their assets.