Look after your estate

Cyril Rose, Partner at Kuits, is an experienced professional who advises clients on all aspects of their tax and estate planning, including Inheritance Tax and probate. Cyril is also a member of The Society of Trust and Estate Practitioners (STEP). Below are typical enquiries that Cyril receives:

Q. I am in my mid-70s and would like to give an investment property to my children to reduce my estate for Inheritance Tax purposes. However, I need the rental income. Can I achieve both aims:

• to make a valid Inheritance Tax gift; and
• retain the income?

Q. I am a widower in my 70s and have recently inherited £2million from my late father’s estate. What steps should I take to prevent my family from having to pay a second ‘bash’ of Inheritance Tax on my death (£800,000)?

Q. My wife and I own the shares in a successful property company. We would like to give some of the shares to our children. Can we do this without paying Capital Gains Tax?

Q. I am in my 40s and married. I own all the shares in a company worth £10million. I understand that the shares qualify for Business Property Relief on my death and so will be disregarded in any Inheritance Tax calculation. I have instructed my executors to sell the company in the event of my death. My accountant suggests that my Will leave the shares in a Discretionary Trust, to avoid the proceeds of the sale forming part of my wife’s estate and being subject to Inheritance Tax on her death. However, I understand that the Trust would be subject to Inheritance Tax charges every 10 years. Can these charges be avoided?

Q. At my mother’s recent 80th birthday party, she announced that she intended to make a gift of £50,000 to each of her three children. Before she had a chance to make the gifts, she was involved in a serious car accident which resulted in her losing mental capacity.

She has a Lasting Power of Attorney which appointed the three children as her attorneys. Can we proceed to make the £50,000 gifts to ourselves in our capacity as her attorneys?

If you would like more information on any of the above scenarios or if you have a question about your tax planning, contact Cyril Rose

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