Gifting houses and other property.
Gifting houses is a common technique to avoid inheritance tax or care home fees the owner of the property – [usually, but not exclusively the main home] to give it away during his or her lifetime to the people – usually children to whom the owner of the property would have wished to leave the property on his or her death.
Giving away your house is a common tactic, with three potential outcomes [in decreasing order of probability] –
- the resulting situation would be worse especially in the medium to long term;
- it would have no effect so it would have been at best, a waste of time;
- the desired outcome would be achieved
An inheritance tax advisor skilled in these matters would be able to offer advice on the right way to go about reducing the attendant liability to inheritance tax on the one hand or care or nursing home fees on the other. Inheritance tax is often thought of as a tax payabe on the death of the property owner, but the savings achieved can be carried forward for several generations. By consulting our experienced estate planners, you would get sound inheritance advice bespoke to your circumstances invoking both the legislative and personal protections for the home owner. An estate planner would help you:
- Understand the dos and donts of inheritance tax planning
- Be mindful of the implications of gifting houses and other property
- Reduce, even avoid inheritance tax legally
- Implement fool proof IHT avoidance plans
- Avoid the government stealing your familys wealth
- Be confident of paying no tax on your legacies.
Inheritance tax avoidance and care home fees planning are rather delicate subjects for which the do it yourself approach would be very harmful to your family wealth.