avoiding death duties?

DavidJ

DavidJ

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Sorry about the subject but for me and I guess many others, the boat is in the above 285k pounds of total assets and so on death, 40% of it's value will go to the taxman.
I was thinking of 'gifting' a quarter of it each to my son and daughter so at least only half the value is up for taxation (in the unlikely event of me passing on)

Can any forumites think of any problems that I might incur. The boat is only SSR registered by the way.
 
I was in the same boat, so to speak as yourself, only with property. An easy and cost effective way to protect yourself is with a life assurance plan written in trust. When you die the proceeds are paid directly to your beneficiarys and they use that to pay the taxman. It doesnt form part of your estate due to the nature of the trust. Very easy to set up.

I love my kids but the thought of gifting them a small fortune prior to death ages me about ten years.

It is good vehicle for inheritance tax avoidance too.
Hope that helps.

David

Of course it is only forty percent above the nil rate band which is £285,000.

"The value of your investments blah blah blah..................."
 
If you give half away and still continue to have use of the boat you will be caught under the "pre-owned assets test" and will therefore be liable to a benefits in kind charge at 40% for useage of the boat. The revenue would probably try to assess it on the basis of the cost of a long term charter. I suppose you could always try saying that the kids half was for the winter and that you only used your half in the summer---but don't count on the taxman accepting that!
 
Move to the Isle of Man

Id rather give the kids everything and move them there.
Its odds on I would gift the kids and our son would be led astray by some Elsie Tanner look alike and end up potless. Just like his father.
 
Actually it's a gift with reservation that will catch you out, potentially. If you can prove that your kids actually use it as much as you and pay their share of the bills and you survive 7 years after giving them their share then you should be ok, but there's lot's of ifs there!!
 
/forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif

Conceited so and so..................

No capital gains either, also zero tax on certain companies, er...like marine industry type thingys /forums/images/graemlins/blush.gif
 
Fair dues, but I was refereing to myself of course, I ve always felt superior /forums/images/graemlins/grin.gif, do feel a bit of a cheat though when I hear what you guys are paying on the 'other Island' but I am not loosing too much sleep.....

Now where's that Havana and jar of Almas...............
 
Write a Will !!!
A loan Trust Will will save your family £114,000 I have a company that specialises in Trust Wills - pm me if interested
 
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