Wills

[motorbiking]

That's only for the property tax-free allowance.
The odd thing is that you can give money away to get yourself below 2m, and it does NOT get hit by the 7 year rule. Counterintuitive.

I understood everything above the nil rate was taxed at 40% other than income

 

[blup]

Eh? I'm not with you.

IIRC there are entry and periodic charges to tax so after twenty years you’ve effectively paid the IHT you would have done on death. There are completely blind trusts that are tax free but sound dodgy.

 

[Justin Passing]

entry and periodic charges to tax

I have trouble imagining what the tax is on....
I'd have to outlive the thing 7 years, is all I know about.

I could use a trust for some great nieces but wouldn't go blind - the mother (my neice) can be the er, administator person, who would be able to use the funds for the kids directly, only. Keeps it away from the niece's other half if they split.

 

[Justin Passing]

I understood everything above the nil rate was taxed at 40% other than income

crossed purposes I think.
The allowances are tax free, 325 personal and 175 iff... for property.
The latter only undiminished if the estate is not over 2m.
Otherwise yes 40% tax.

 

[blup]

I have trouble imagining what the tax is on....
I'd have to outlive the thing 7 years, is all I know about.

You retain (sorry the trustees retain) greater control than an out and out gift, plus it’s not included in any divorce settlement or business insolvency