inheritance tax


R

r.bartlett

if you put 100k in your will to your dog so it can be looked after when you
die, does it have to pay inheritance tax?


cheers

richard
 
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S

Scott Williamson

r.bartlett said:
if you put 100k in your will to your dog so it can be looked after when you
die, does it have to pay inheritance tax?
Only if it dies with an estate worth more than the IHT threshold for dogs.
 
A

Andy Pandy

r.bartlett said:
if you put 100k in your will to your dog so it can be looked after when you
die, does it have to pay inheritance tax?
Yes, unless you are married to it. IHT is charged to the estate, it doesn't
matter where the money goes unless it's to your spouse. The first 250k or so is
tax free.
 
T

Thom

r.bartlett said:
if you put 100k in your will to your dog so it can be looked after when you
die, does it have to pay inheritance tax?
No. Neither it nor anyone else pays inheritance tax. IHT is levied on
the estate not on the person (or creature) that inherits.

Thom
 
T

tim

Andy Pandy said:
Yes, unless you are married to it. IHT is charged to the estate, it doesn't
matter where the money goes unless it's to your spouse. The first 250k or so is
tax free.
expect that charitable donations are also tax free.
Perhaps it would be possible to leave the money to a charity with the
proviso that they look after the dog, perhaps you could set up your
own charity with the same aim

tim
 
R

Ronald Raygun

tim said:
expect that charitable donations are also tax free.
Perhaps it would be possible to leave the money to a charity with the
proviso that they look after the dog,
Attaching such strings would disqualify the donation as charitable.
perhaps you could set up your
own charity with the same aim
It's not possible to set up a "charity" to benefit a specific
individual dog, otherwise you could similarly define your
own children as charity cases and so circumvent IHT altogether.
 
R

Ronald Raygun

Thom said:
No. Neither it nor anyone else pays inheritance tax. IHT is levied on
the estate not on the person (or creature) that inherits.
That's using a rather disingenuous definition of "anyone".
An estate, in this context, *is* someone, namely the deceased.
 
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A

a0000000000

Ronald Raygun said:
That's using a rather disingenuous definition of "anyone".
An estate, in this context, *is* someone, namely the deceased.
Of course you cannot legally give anything to a dog as dogs are not
recognised as a legal person and capable of ownership. You would need to
give it on trust to someone who could hold it for the benefit of your dog.

On the philisophical arguement of whether a dead person is someone or merely
a cadaver, and what makes a person - try alt.philosophy. My own preference
is that a person can only be someone who is alive. This is the position
taken in law as a deceased cannot do anything.
 
R

Ronald Raygun

a0000000000 said:
Of course you cannot legally give anything to a dog as dogs are not
recognised as a legal person and capable of ownership. You would need to
give it on trust to someone who could hold it for the benefit of your dog.
I have no argument with that. I was merely addressing the charitable
aspect of the question.
On the philisophical arguement of whether a dead person is someone or
merely a cadaver, and what makes a person - try alt.philosophy.
My own preference is that a person can only be someone who is alive.
This is the position taken in law as a deceased cannot do anything.
I'm not making a philosophical point, but one thing the deceased *can*
do is pay IHT. He cannot, obviously, do so in the flesh, but his
representatives, the executors, do it on his behalf.

Thom correctly stressed that it is not the heirs who pay the tax,
but that it is levied on the estate of the deceased. The estate
is not a person, but is the wealth left behind by the deceased
person. To say IHT is levied on the estate just means that the
amount of tax payable is calculated on the basis of the value of
this estate, and is collected from its administrators before the
funds are distributed among the heirs. This is as opposed to the
way it works in some other administrations where each individual
heir is taxed according to the size of their share of the estate,
and on how closely related the deceased was to the heir.

Nevertheless, just because the estate is not a person, doesn't mean
that "not anyone" pays the tax. Someone does, or it wouldn't get
done. I find it useful to think of it as the deceased person himself
paying it.
 
J

john boyle

a0000000000 said:
On the philisophical arguement of whether a dead person is someone or merely
a cadaver, and what makes a person - try alt.philosophy. My own preference
is that a person can only be someone who is alive. This is the position
taken in law as a deceased cannot do anything.
The law can regard a legal entity even if that entity is not alive in a
medical sense. Hence, Trusts, Estates and Ltd Cos ell exist in legal
terms. Unfortunately.
 
R

Ronald Raygun

john said:
The law can regard a legal entity even if that entity is not alive in a
medical sense. Hence, Trusts, Estates and Ltd Cos ell exist in legal
terms. Unfortunately.
Why is that unfortunate? It just goes to show there is life
after death after all.
 
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T

Thom

Ronald said:
That's using a rather disingenuous definition of "anyone".
An estate, in this context, *is* someone, namely the deceased.
That's a fair point (but technically open for counterargument), but the
main issue is the estate pays IHT and whether the dog's inheritance is
influenced by IHT depends on the whole estate. The OP seemed to imply
that IHT is levied on the inheritor.

Thom
 

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