Complicated IHT/CGT/Property question


U

usenet

I'm not asking for definitive answers here, we're not aiming to change
anything in the immediate future, but some guidance on good directions
to move would be welcome.

We lived/worked abroad for two periods, 1974/77 and 1980/87, during
the second period abroad we bought a flat in North London which we
lived in while home on leave (two months/year, not enough to stop us
being non-resident).

Since we came home in 1980 the flat has been let for most of the time
but for a number of periods (several months at a time) our children
have lived in the flat. We have had a house (well, a series of
houses) which has been our main residence since 1980.

Currently our daughter is living in the flat and, as she is now
working, is paying us rent, presently fairly nominal.

Our children both own a small percentage of our main residence as we
used their part of an inheritance from my mother when she died (as
well as our part of the inheritance) to buy our current house.

I'm 57, my wife is 50 so we're not retiring immediately but it isn't
that far away.

What sort of things should we be looking at to minimise IHT and/or
CGT? We would quite like to realise some capital from the flat at
some point and it's quite possible that our daughter can get an
advantageous loan/mortgage from her employment. What are the
implications of selling the flat to her?

What sort of professional should we be talking to about all this - an
accountant, a solicitor or who? We obviously need someone who knows
all the ins and outs, how does one find an expert with no axe to
grind?
 
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P

Peter Crosland

What sort of professional should we be talking to about all this - an
accountant, a solicitor or who? We obviously need someone who knows
all the ins and outs, how does one find an expert with no axe to
grind?
You need a solicitor or accountant who specialises in IHT planning. Take a
look here to find solicitors who specialise. Obviously you will have to pay
but since the tax is levied by the Government I don't understand you comment
regarding axes.

http://www.lawsociety.org.uk/choosingandusing/findasolicitor.law
 
U

usenet

Peter Crosland said:
You need a solicitor or accountant who specialises in IHT planning. Take a
look here to find solicitors who specialise. Obviously you will have to pay
but since the tax is levied by the Government I don't understand you comment
regarding axes.

http://www.lawsociety.org.uk/choosingandusing/findasolicitor.law
OK, thanks, I'll start there. All I meant about an axe to grind was
that there are surely things like pensions and annutities that people
might want to sell us to 'plan' our financial future.

However, having gone to the above web site I haven't had much luck
finding what I want. The only remotely related 'area of law' seems to
be "Financial and Investment Services" so I tried that and the only
hit was a very large London company which doesn't really seem to be
what I'm after.

I also tried searching for 'inheritance' in the FAQ and got no hits at
all.
 
S

stuart noble

Peter Crosland wrote in message said:
You need a solicitor or accountant who specialises in IHT planning.
i.e. a member of STEP, an organisation devoted to the inflation of members'
fees because they allegedly specialise in inheritance tax.
As a couple you might find the info here on discretionary trust wills
interesting.
http://www.tenminutewill.co.uk/main.cgi
The Norwich Union web site has downloadable brochures on the different types
of trust and, although they're linked to insurance products, it might give
you some ideas
 
M

Martin

OK, thanks, I'll start there. All I meant about an axe to grind was
that there are surely things like pensions and annutities that people
might want to sell us to 'plan' our financial future.

However, having gone to the above web site I haven't had much luck
finding what I want. The only remotely related 'area of law' seems to
be "Financial and Investment Services" so I tried that and the only
hit was a very large London company which doesn't really seem to be
what I'm after.

I also tried searching for 'inheritance' in the FAQ and got no hits at
all.
I did a search for Wills and Probate specialists in Chelmsford, and it
came up with one firm in Bournemouth and one in Leeds!

Why not ask your bank manager if he can recommend someone?

Martin.
 
P

Peter Crosland

Why not ask your bank manager if he can recommend someone?

Bank manager have more vested interests than anyone! If the site has
provided does not help then look in Yellow Pages. I have just done so and
found several firms that offer the services. I would not worry about too
much about the hard sell from solicitors. Of course a personal
recommendation is even better.
 
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T

Troy Steadman

usenet said:
However, having gone to the above web site I haven't had much luck
finding what I want. The only remotely related 'area of law' seems to
be "Financial and Investment Services" so I tried that and the only
hit was a very large London company which doesn't really seem to be
what I'm after.
I would have said you are already in the right place, asking questions
in uk.finance, uk.legal.moderated, uk.business.accountancy and using
Google Groups search to get a "feel" for the subject. When you are
paying a solicitor £150ph you don't want to be saying "Run that one past
me again?" too often :0)

If you are familiar with Excel, start building up a financial "model" of
your situation. Get some controls, spinners etc and try to build into it
all the things that *might* happen:

house prices go up VS house prices go down
you die before your children VS they die before you

....all the things which will have dramatic effects if they
do or do not happen. By spinning the spinners you can go through *all*
the possible combinations to come up with a foolproof "cunning plan".

*Then* go to your solicitor. I think most small/medium sized solicitors
are able to cope with these sorts of questions, they usually have
specialiasts who breeze in and out doing (perhaps) 1/2 day a week in 4
or 5 different practices.



--
 
U

usenet

Martin said:
I did a search for Wills and Probate specialists in Chelmsford, and it
came up with one firm in Bournemouth and one in Leeds!

Why not ask your bank manager if he can recommend someone?
Hmm, is there really such a thing as "your bank manager" nowadays? In
my case he's in North London and I live in Suffolk anyway.
 
R

Robin Graham

Why not ask your bank manager if he can recommend someone?

This is a joke, I presume.

Rob Graham
 
M

Martin

Robin Graham said:
This is a joke, I presume.
If you like!

Is it /that/ silly? What would you recommend?

Personally I would probably check out the websites of likely-looking
local solicitors and accountants first and see if they had the necessary
specialists, but surely a bank manager would have some experience in
customers' financial planning, and might have an idea of who was any
good?

Obviously he might recommend the bank :).

Martin.
 
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J

john boyle

Robin Graham said:
This is a joke, I presume.
I hope so!

In my direct, recent and personal experience Accountants & Solicitors
generally do NOT have the knowledge required. I think it would be better
to get a properly qualified IFA AND a solicitor acting together. I speak
as having recently come across a deceased accountants estate who had
appointed his partner and a solicitor as execs that didn't use the Nil
Rate Band and the execs hadn't spotted it and there was only 4 months to
go to get a Deed of Variation done.

The IFA should have the extra qualification G10 and be actively advising
clients on IHT on a fee basis and the Solicitor needs to know who Mr
Tweedy is at the CTO. If he hasn't heard of him, then go elsewhere.

Also, ask both if they know about the change in attitude on IHT that the
IR introduced in November and March.,

STEP membership (as somebody else has pointed out) would be a good
thing.

There are still solicitors out there putting half the house into trusts
and completely missing the fact that the surviving spouse has an
interest in possession and will be taxed on that half.

What ever you do DONT go & ask anybody at a bank to help or any will
writing company.
 
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