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Another door closes soon
Robert_Sterling_3
Posts: 7,112 Forumite
in Cutting tax
This is a recipe which was cooked up earlier.
Mr and Mrs Shilling, of an earlier generation, sold their house to a Trust which had been set up for their benefit.
They then lived in the house which did not belong to them for the rest of her life.
The trust did not actually pay them for the house it gave them an I.O.U. for the appropriate amount.
THe I.O.U. was put into a second Trust for the benefit of the Twelve Pennies who were the children and grandchildren of the aforementioned Mr and Mrs Shilling.
They made other arrangements as well designed to mitigate inheritance tax charges.
In due course after the second death the house was sold by the first Trust who then paid the money owed to the second trust to pay off the I.O.U
This is a simplification of what happened.
Hey Presto no Inheritance Tax Paid.
This double Trust method was becoming increasingly popular.
Less so now though.
Who can you trust now?
Law in respect of Double Trusts will be altered and the alteration will be retrospective.
Anyone using the Double Trust method has been given some time in which to consider altering their plans ... or else.
Mr and Mrs Shilling, of an earlier generation, sold their house to a Trust which had been set up for their benefit.
They then lived in the house which did not belong to them for the rest of her life.
The trust did not actually pay them for the house it gave them an I.O.U. for the appropriate amount.
THe I.O.U. was put into a second Trust for the benefit of the Twelve Pennies who were the children and grandchildren of the aforementioned Mr and Mrs Shilling.
They made other arrangements as well designed to mitigate inheritance tax charges.
In due course after the second death the house was sold by the first Trust who then paid the money owed to the second trust to pay off the I.O.U
This is a simplification of what happened.
Hey Presto no Inheritance Tax Paid.
This double Trust method was becoming increasingly popular.
Less so now though.
Who can you trust now?
Law in respect of Double Trusts will be altered and the alteration will be retrospective.
Anyone using the Double Trust method has been given some time in which to consider altering their plans ... or else.
...............................I have put my clock back....... Kcolc ym
0
Comments
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I think Mrs Eversden used a double trust.
THe Inland Revenue took her to court.
She won.
The Inland Revenue took the case to Appeal Court
She won again.
The Inland Revenue took the case to the House of Lords.
She won again.
The family, I assume, lived happily ever after.
The Goverment changed the law.
Some you win
Some you lose
The Eversden Case...............................I have put my clock back....... Kcolc ym0
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