Inheritance tax

Inheritance tax

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We would value your advice regarding inheritance tax.  We now own three properties worth in excess of £1million in total and about ten years ago, when there were only two properties, we became tenants in common on our main residence, and a trust fund was set up via our Wills in respect of our entire estate.   (We have two adult daughters named in the trust).

In the 10 years since these arrangements were made we appreciate that the law on inheritance has changed and other factors may have come into play. We may need to update our Wills but, depending upon your advice, there may be other things we should be considering.

 
 
We are wondering if we were to add our daughters names to the deeds of our main house would this reduce our share of the value of the property by 50% for inheritance tax purposes. 
 
Also if we were to add one daughter's name to each of the flats we own would they be involved with the tax man with regard to the rental income we receive?  If so, would they have to fill in a self assessment form as at the moment their salaries are taxed via p.a.y.e.

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By michael7
20th Jan 2015 16:56

You may find some good advice on this forum - but I would highly recommend speaking to an tax adviser - there are a few issues here and paying for a bit of professional help will go a long way in my opinion

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By Justin Bryant
20th Jan 2015 17:25

There is a very simple IHT solution

That would eliminate your IHT bill here and not involve your daughters re income tax etc., but as the person above said, you should contact a tax specialist (ideally a tax lawyer as accountants cannot draft deeds re property as it is a reserved activity) and you are unlikely to get good advice on your question from this forum.

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