poppet2 Posted October 24, 2017 Share Posted October 24, 2017 How about if you just sell your house, give the proceeds of the sale to your children, then live in rented accomodation until you pop off. Or you could pay for the children to build a granny extention on their property and live with them. Even paying rent for a few years has got to be cheaper than paying 40% inheritance tax of your Entire estate. Link to comment Share on other sites More sharing options...
Chrismorgan Posted October 24, 2017 Share Posted October 24, 2017 Yes, you can give them bit by bit, year on year.Can't remember the figures though but we did, as have many others. Link to comment Share on other sites More sharing options...
Andy1976 Posted October 24, 2017 Share Posted October 24, 2017 How about if you just sell your house, give the proceeds of the sale to your children, then live in rented accomodation until you pop off. Or you could pay for the children to build a granny extention on their property and live with them. Even paying rent for a few years has got to be cheaper than paying 40% inheritance tax of your Entire estate. There are legitimate ways of avoiding a lot of taxes. Whether people consider them moral ways or not is another question, but there are certainly ways of doing so. There are ways of keeping your benefits whilst you have £200,000 in the bank too. Link to comment Share on other sites More sharing options...
geared Posted October 24, 2017 Share Posted October 24, 2017 There is a threshold for inheritance tax, it's not 40% of everything. Also the state is wise of old people disposing of assets just before they pop their clogs. If you want to transfer everything to our children it's generally better to do it many years before your death. Link to comment Share on other sites More sharing options...
Jomie Posted October 24, 2017 Share Posted October 24, 2017 Poppet2 - you need to employ the services of a good accountant and solicitor in order to circumvent inheritance tax. You talk blithely of an elderly person ‘popping off’ with no mention of their well-being at the end of life. Moving home is very stressful and if someone has lived in their own home for many years, it could be more so. Rented accommodation is not always of a good standard and is subject to the vagaries of the landlord. As for building annexes, that’s fine until the old person requires care and the family is unwilling to provide it. Link to comment Share on other sites More sharing options...
barleycorn Posted October 24, 2017 Share Posted October 24, 2017 Go to one those companies that buys your house then lets you rent it back until you die. Withdraw the lot in cash (minus what you need yourself)and split it into x number of suitcases for x number of recipients. Hand the suitcases to the lucky few with instructions on not to put any in the bank. If anyone asks you blew the lot on drugs and hookers. Link to comment Share on other sites More sharing options...
vwkittie Posted October 24, 2017 Share Posted October 24, 2017 It's not 40% of your entire estate, it's 40% of the amount over £325,000. In some circumstances the threshold is greater than £325,000 as well. Link to comment Share on other sites More sharing options...
Danny_Boy Posted October 24, 2017 Share Posted October 24, 2017 How about if you just sell your house, give the proceeds of the sale to your children, then live in rented accomodation until you pop off. Or you could pay for the children to build a granny extention on their property and live with them. Even paying rent for a few years has got to be cheaper than paying 40% inheritance tax of your Entire estate. You will only pay inheritance tax if your estate is worth over £325k (last time I checked) and you will only pay 40% on anything above that level. So to be fair for most people this is a nice problem to have. As house prices increase though many more people will be hit with IHT. You need to speak to an accountant ideally, if you have life cover ensure it is in trust as this will ring fence it against IHT. Link to comment Share on other sites More sharing options...
Guest Posted October 24, 2017 Share Posted October 24, 2017 Leave it all to your spouse/civil partner. Link to comment Share on other sites More sharing options...
tinfoilhat Posted October 24, 2017 Share Posted October 24, 2017 Leave it all to your spouse/civil partner. Who will have to pay inheritance tax on it if you die and it's over the value of £325k. Link to comment Share on other sites More sharing options...
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