Q. Question? So we going to inherit 3 properties from parents. What is the best way of avoiding inheritance tax? I thought maybe registering a company and signing all the properties to the company. This do-able?

A. Best Answer: Don't go for Hales' suggestion, your parents could end up with massive Capital Gains Tax bills doing it that way, even if no money changes hands. Also if your parents wanted to stay in one of the properties (which I would assume is their main home) they would have to pay you an economic rent, otherwise the transfer would be disregarded for IHT purposes. You also have to consider that if one of you was to get divorced or bankrupt, they could lose their home, and you at least half your asset.
The transfers would also have to be made at least 7 years before the deaths to avoid IHT.
Think about creating a Trust, and consult a good financial advisor. That costs, but it is worth it.

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Q. Question? To avoid inheritance tax is it possible for same sex siblings to enter in to a legal social partnership?

A. Best Answer: At least first cousin. However, to minimise inbreeding and its associated problems I would think that it should be at least second cousins

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Q. Question? This is a simple question, I'm not interested in whether it is morally right or wrong but what practical economic results would occur (in this hypothetical assume all inheritance is re-invested in infrastructure, health, services etc).

Personally I'm guessing some things would go down, house prices etc.

But would anything stabilise, or would it ultimately increase or decrease inequality.

What of pay structures, food prices etc (I realise this is a global market)

Also am aware of tax flight, what effect would this have?

(B4 any political accusations fly, think of Aristotles statement: 'It takes an educated man to entertain an idea rather than believing it')

A. Best Answer: Interesting question. What is the effect of a 100% estate tax at all levels. Practically speaking, this would be very difficult, since much of inheritence is family heirlooms. I'm not so sure this would be constitutional, either, and obviously it would never pass (probably wouldn't even get 1 vote, I certainly wouldn't recommend it). But as a hypothetical:

The government would be collecting an enormous amount of money in taxes at first. They would have to spend it on massive welfare programs to help housing costs, education costs, retirement costs, and child support. All of these things are often partially funded with the estate of the parents. You would also have to end tax free gifts, because that would be a loophole. Instead, you couldn't give your money away to potential heirs at all. Rather, people would have to depend on the government. Any failure of government would completely devastate society.

This scheme would seriously hamper the incentive to continue to work and produce wealth once you have enough for your own retirement. In turn, this would lower the amount collected in estate taxes. The result would be the government's inability to afford the programs it would have to provide.

There's something in economics called the Laffer Curve. It relates tax rates to tax revenues. At 0% tax, there is 0 tax revenue. At 100% tax, there is some tax revenue, but very little, as people lose their incentive to work. In between, there is a curve. If you're below the hump, raising the tax rate raises the tax revenue. If you're above the hump, raising the tax rate lowers the tax revenue. Trickle Down Economics is based on the theory that the peak is relatively low, conventional wisdom is that the peak is relatively high. There is a lot of debate about where we are on the Laffer Curve, but one thing is for sure, if we raise any tax to 100%, we'll be to far up the curve.

All in all, it would be a dangerous situation. I'm all for the estate tax, but it should be progressive, like income tax. I think the progression should be based on the incomes of the inheritors (after accounting for the inheritance), rather than the amount of the estate. In other words, it should be taxed as ordinary income, which is a simple solution on a tax form and has the effect of preventing conglomeration of wealth, which is one of the main problems in capitalism. But if you have too high an estate tax, you lose the benefit of the previous generation's earning power and that generation loses the power to direct their estate at all.

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Q. Question? The madam opened the brothel door to see a rather dignified, well-dressed good looking man in his late 40s or early 50s.
"May I help you?" she asked.
"I want to see Valerie," the man replied.
"Sir, Valerie is one of our most expensive ladies. Perhaps you would prefer someone else," said the madam.
"No. I must see Valerie," was the man's reply.
Just then, Valerie appeared and announced to the man that she charged $1,000 a visit.
Without hesitation, the man pulled out ten one-hundred dollar bills, gave them to Valerie, and they went upstairs.
After an hour, the man calmly left.

The next night, the same man appeared again, demanding to see Valerie.
Valerie explained that none had ever come back two nights in a row--too expensive--and there were no discounts. The price was still $1,000. Again the man pulled out the money, gave it to Valerie and they went upstairs. After an hour, he left.
The following night the man was there again. Everyone was astounded that he had come for the third consecutive night, but he paid Valerie and they went upstairs.
After their session, Valerie questioned the man. "No one has ever been with me three nights in a row. Where are you from?" she asked.
The man replied, "South Carolina." "Really" she said. "I have family in South Carolina."
"I know," the man said. "Your father died, and I am your sister's
attorney. She asked me to give you your $3,000 inheritance.
The moral of the story is that there are three things in life that are
certain:

1. Death

2. Taxes

3. Being scr*wed by a lawyer

A. Best Answer: brilliant. thanks for sharing.

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Q. Question?

A. Best Answer: Its a very old law, from millionaire families that would leave all the money to the kids, and the kids would never have to work a day in their life. It does work, but only on properties of £5 million or so! The problem is, once upon a time £250,000 was an awful lot of money and that's when the law came in, but now, half the houses in Britain are worth more than that. It needs to be changed!

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Q. Question? My partner's wife died in Jan 2007. The house they owned [worth £425,000] was in both their names and she left about £40k in her bank account which passed to him in her will.

Since he is the survivor does he have to pay any form of taxation on either the house or the money left. I phoned the tax office and what they were saying was quite confusing. I am trying to deal with this whole thing for him as he is finding it hard to deal with his own affairs. I am his new partner.
Yes they were married at the time of her death.
Raysor - The wife left nothing in her will to her relatives. My partner ended up gifting £15,000 to three of his nieces although his wife had not left any money to them!

A. Best Answer: No. Transfers between spouses are not liable to IHT. The husband will be able to use his deceased wife's IHT allowance plus his own when he dies. So he wil have 2x the allowance. I think it is £325000, so that will be £650000 allowable.
Were there any life-time gifts to children etc. If these were made less than 7 years ago, they will be liable to IHT and therefore would be deducted from the allowance.

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Q. Question? The madam opened the brothel door to see a rather dignified, well-dressed good looking man in his late 40s or early 50s.

"May I help you?" she asked.

"I want to see Valerie," the man replied.

"Sir, Valerie is one of our most expensive ladies. Perhaps you would prefer someone else," said the madam.

"No. I must see Valerie," was the man's reply.

Just then, Valerie appeared and announced to the man that she charged $1,000 a visit.

Without hesitation, the man pulled out ten one-hundred dollar bills, gave them to Valerie, and they went upstairs.

After an hour, the man calmly left.

The next night, the same man appeared again, demanding to see Valerie.


Valerie explained that none had ever come back two nights in a row--too expensive--and there were no discounts. The price was still $1,000. Again the man pulled out the money, gave it to Valerie and they went upstairs. After an hour, he left.

The following night the man was there again. Everyone was astounded that he had come for the third consecutive night, but he paid Valerie and they went upstairs.

After their session, Valerie questioned the man. "No one has ever been with me three nights in a row. Where are you from?" she asked.

The man replied, "South Carolina." "Really" she said. "I have family in South Carolina."

"I know," the man said. "Your father died, and I am your sister's
attorney. She asked me to give you your $3,000 inheritance."



The moral of the story is that there are three things in life that are
certain:

1. Death

2. Taxes

3. Being screwed by a lawyer

A. Best Answer: lol that was good....didn't know where is was going and then ZING! lol

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Q. Question? As i said im just wondering how you would go about it. My mother was going to buy a house in torquay and then sign over the house to me so when she does die it will be less inheritance tax to pay so i am wondering:
How i would go about it-
What fees will there be-
As this would be a third house over hers will she have to pay more tax-
And anything else you can tell me-
Thank You for all your help!

A. Best Answer: Unless she has well over $1,000.000 in assets, no ESTATE tax will be due. In the US, their is NO Federal inheritance tax, and most states don't have one either. If she KEEPS the house, when you inherit it, your basis for determining any gain when you sell is the value when she dies. If she giving it to you now your basis is what she originally paid. If your goal is to minimize taxes, you are probably better off if she DOESN'T sign it over to you.

To answer your direct question. Contact whoever collects property taxes where you are and they can provide a form to transfer the title. If you don't know who that is, any Realtor should be able to take care of this for you in under an hour.

EDIT: Another answer reminded me about gift taxes (Paid by the person making the gift). They con be avoided if you do things properly, but you will still probably be better off NOT doing the transfer now.

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Q. Question? I can find a list of solicitors which offer these services, but would rather use an accountant as the estate would need valueing and inheritance tax would need to be paid. Going straight to the accountant seems the best bet.

A. Best Answer: Search for Accountants offering 'Trust management' services. This is the area that you are looking for. I served articles within a Chartered Accountants office, and we handled the estates of deceased clients. We used our own solicitors for any legal aspects requiring a Solicitor. All the 'big five' will offer these services, but probably wont be the cheapest. Depends how big/complicated the estate is, and whether there are any businesses involved.

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