great vLog, Does the spousal exemption mean that those items passed to spouse are not included in the estate for IHT? For example the house, cash and pension (£1.5m are passed to spouse) however a gift to kids exists of say £100k each 3 years prior to my death. Is my estate to pay IHT on the £200k or a proportion of it?
@jam99Ай бұрын
What about a share for share exchange between an FIC and a trading company for no CGT and so provides protection of the assets? Is that sensible/doable?
@InheritancetaxadviceАй бұрын
Possible but depends on the circumstances
@davidcooks2379Ай бұрын
Please check your sound quality
@SusanRose-c1zАй бұрын
This is quite an old video. Is all the information still relevant today (21st November 2024)?
@stephenclark681126 күн бұрын
Agreed. Would be great to know latest views on this three years on.
@tinheadtinhead65052 ай бұрын
Hi Charles. Can you please explain what is an "unused annuity" as I was considering buying a joint life annuity with part of my pension pot.
@Inheritancetaxadvice2 ай бұрын
So when you buy an annuity with a guarantee built in for say 10 years and you die in 3 years you have 7 years unused
@tinheadtinhead65052 ай бұрын
Thanks. I was considering one of those but if the unused years will now get added to the estate it is less attractive
@Inheritancetaxadvice2 ай бұрын
@@tinheadtinhead6505 get advice trying to this yourself will end up with costly errors
@dominic82182 ай бұрын
Can feel the high commission annuity salesmen lining up 🙈
@Inheritancetaxadvice2 ай бұрын
We dont take any commission - all our work is on invoiced fees
@dominic82182 ай бұрын
@ people need to be very careful. The alternative of an annuity will tend to mean the cash is fully gone on death. Using trusts can mitigate this and paying some IHT for the benefit of passing on to your estate may be better than everything disappearing on death. Good to see you take a fee as opposed to commission- not always the case as you know. Also very little work involved in setting up annuities 👍🏻
@Inheritancetaxadvice2 ай бұрын
@@dominic8218 - Yes people need to be even more careful to get good experienced advice
@lawrie34482 ай бұрын
If you are taxed on your annuity and then go over the frozen personal allowance , you will be paying twice …?
@dontuno2 ай бұрын
Duly noted and of great interest.
@kalpnashah40302 ай бұрын
TBH the tories brought rules in 2015 to say pensions are out of IHT, before then they were always part of IHT.
@Inheritancetaxadvice2 ай бұрын
Sorry not the case - This is the first time pension have ever been liable to IHT
@ST-ff7pf2 ай бұрын
Thank you for the valuable information and for creating this video. Please can you help answer the below: 1) would I do this if I own most of the assets in our marriage but want my spouse to enjoy them if he were to survive me but pass on to my side of the family upon his passing or if he were to remarry after my death? 2) Can this be done if you are in a 2nd marriage, you do not have children of your own but your spouse does from a previous marriage and want to leave some assets for your partner's child but most of it to your nieces/nephews? Thank you. I appreciate your reply.
@Inheritancetaxadvice2 ай бұрын
Sorry but this is too complex to answer without further information - please go to our website and use the free personal advice by video facility
@ymwan2 ай бұрын
The most understated part of the budget is the bringing in of pensions into IHT including farming (farmers should be calculating winding up costs right now). The IHT change has effectively created a NEW LTA of 650K for a couple. You now have as a couple only have a pot of 650k (whether it it in a SIPP, ISA or GIA) to generate income for your retirement (4% of 650k = 26k income for a couple) . Any exposure above this immediately opens you up for immediate 40% additional tax or more (if you die above 75 it becomes 52%). And because you don't know when you will die (and due to market fluctuations you would normally err on the side of a bigger pot, but with a 40%+ tax hanging over you, one would be inclined to blow the excess. That's for the fortunate ones that can max out this new imposed limit. Yes, one can buy an annuity, but thats why the pension reforms were done to allow more control of your destiny because everyone's health, desires and family circumstances are different. It's your savings you should spend it as you like. Why should giving away money to a politic party reduce the IHT bill? All of these do not apply to civil service pensions, but of course one forgets when the goose is dead and there is nothing to take anymore who will pay the unfunded pensions? This budget has decimated the pension industry IMHO, and enslaved the future generation (they just haven't figure out the maths yet). And imposed a £1M cap on wealth (hence the farming and entrepreneur £1M exemption). Those with a potential retirement asset pool of 650k+ will look to strip themselves by gifting and/or moving aboard the money.
@Inheritancetaxadvice2 ай бұрын
All of the problems you mentioned are true but they are all solvable - you just need to engage an experienced adviser and pay for advice but as our initial fee is only £497 for that advice ( at present) that's a very small risk to take
@DeepSeaDiverHB143 ай бұрын
The best way is sell and spend . The world is money mad 😊
@Inheritancetaxadvice2 ай бұрын
Not really we help hundreds of clients pay Zero iht - pensions are just another asset to be considered
@DeepSeaDiverHB14Ай бұрын
@ come on mate , it’s all you hear people talking about …. Mortgages , money , money money In the end - you die AND EVERYTHING IS TAKEN
@ZM007163 ай бұрын
Very good teacher with visuals making it much clearer than most channels
@Inheritancetaxadvice2 ай бұрын
Cheers
@KakaCat993 ай бұрын
Great video.. just what I needed.
@Inheritancetaxadvice3 ай бұрын
Hi - Thanks - I am glad you find our videos helpful
@cosimo77703 ай бұрын
Does not explain that a non-domiciled UK resident (less than 15 years) married to a UK domiciled spouse can apply to HMRC for UK domicile for IHT purposes.
@Inheritancetaxadvice2 ай бұрын
Cannot cover everything in one video
@cosimo77703 ай бұрын
Sound is inaudible.
@Inheritancetaxadvice2 ай бұрын
No one else seems to have an issue
@cosimo77703 ай бұрын
The argument that usually cash above £ 50k would be liable to IHT is illogical, because any other form of asset is also liable to IHT.
@cosimo77703 ай бұрын
Fails to explain whether the gifter can maintain his standard of living from his cash savings whilst gifting from income to the benefactor. If I have £ 1 million cash savings to live off, I can easily gift £ 12k annually from £ 20k income and maintain my standard of living. Also, the video only mentions gifting to children or g-children, but anybody can be the benefactor.
@Inheritancetaxadvice3 ай бұрын
Thanks for your comments but with full respect this is a 5 minute video to cover the main points to help people understand this - its is not full and definitive advice covering every possible scenario
@tokenizegames3 ай бұрын
thanks Charles for sharing this.
@Inheritancetaxadvice3 ай бұрын
For 96% of the population who will not have a IHT problem there is no need for holding the main residence in Tenants in Common. If people are probably going to have an IHT problem changing the property to Tin C enables us to do some tax planning to save often several hundred thousand in tax. The higher the value of the main residence on death the higher the tax saving
@kclim26313 ай бұрын
One way to avoid Inheritance Tax is to give in my will all my assets to my spouse, and have an agreement with her to distribute the assets as gifts to wider family. Providing my spouse lives for 7 years (after gifting), then no Inheritance Tax is due. Is this correct?
@Inheritancetaxadvice3 ай бұрын
Yes in theory BUT you dont know who will die first and if she will carry out your wishes
@kclim26313 ай бұрын
@@Inheritancetaxadvice Thank you. So in principle it is possible. She is 5 years younger than me and she is from "long life genes". I simply have to trust her - and I will be drafting a legal agreement with her, and I will inform the wider family what they should be receiving from me through her - is such legal agreement permissible?
@Inheritancetaxadvice3 ай бұрын
@@kclim2631 Yes it is possible but you are much better off with certainty and using our advanced Estate planning - watch videos on the website
@jasonhurley92423 ай бұрын
I thought surviving spouses do not pay inheritance tax if they jointly own the property with their spouse. So why use tenants in common?
@Inheritancetaxadvice2 ай бұрын
I have another video explaning this as it allows additions tax planning and for many people with high value houses can save several hundred thousand pounds
@razachaswills50764 ай бұрын
I have had common law wife, CLW, for 18 years, who has cared first for my Father and now for me. I have adult children from a former marriage, and I want to leave my apartment for my son but with provision that my CLW is allowed to live in it until she dies, or decides to vacate it. She will pay all running costs etc. I am told a Discretionary Trust will allow this and prevent any family member trying to evict her, even if this is highly unlikely now circumstance could change. Security for my CLW is my No 1 priority, and my son’s secure inheritance a close 2nd. I’m told it will also ensure the added £175k is granted before IHT is applied?
@Inheritancetaxadvice3 ай бұрын
Obviously we cannot give you personal advice on YT. Use our website Free help section and get personal questions answered which is a free facility but you will need to spend 5 minutes completing a form so I know more about your circumstances
@tokenizegames4 ай бұрын
charles who owns the trust? is it a corporation? a business of some kind?
@Inheritancetaxadvice3 ай бұрын
Trust can be set up by both people or very rarely companies. The benifacaries own the assets but the trustees control when they get those assets - this is usually the people who put the money into the Trust
@TokShogun4 ай бұрын
Does the domicile in this case relate to the domicile of the deceased or the domicile of the recipient of the inhertitance?
@Inheritancetaxadvice4 ай бұрын
IHT cases always refer to the estate of the deceased person as that is what is beoingh potential taxed not the recipient
@migooabd26014 ай бұрын
Excellent
@migooabd26014 ай бұрын
I had Excellent service from Charles Highly recommended
@branduusituuli4 ай бұрын
The other way to avoid IHT is to be born into The Royal Family.
@Inheritancetaxadvice4 ай бұрын
Not True Lady Diana estate paid million in IHT when she died
@branduusituuli4 ай бұрын
@@Inheritancetaxadvice She wasn’t born into the Royal Family
@solomit14 ай бұрын
does a discretionary trust fro disable person qualify for RNRB
@Inheritancetaxadvice4 ай бұрын
Sorry a bit more complex than that the RNRB is a claim for IHT and the value of the property is passed to a trust and not the RNRB
@solomit14 ай бұрын
@@Inheritancetaxadvice Thank. you for your reply, let me explain a bit more does a Will still qualify to utilise the RNRB on a residential property if a 1/3 goes into discretionary will trust for benefit of a disabled person who is a child of the spouse
@Inheritancetaxadvice4 ай бұрын
@@solomit1 Yes but get advice as this is complex planning
@solomit14 ай бұрын
@@Inheritancetaxadvice okay thank you, much appreciated for your advice !
@Inheritancetaxadvice4 ай бұрын
Sorry cannot say without a full understanding of your circumstances - possibly both
@denisotto3484 ай бұрын
Great video. To the point and issued some pertinent and valuable info straight out the gate. A breath of fresh air.
@Inheritancetaxadvice4 ай бұрын
Thanks and glad we can help
@stephenclark68114 ай бұрын
Can you move some properties into a FIC and leave some in own name - or do they all need to move? Thanks
@Inheritancetaxadvice4 ай бұрын
As long as you move at least 6 properties into a company you should be fine but this is complex work so get advice
@chrisferres48894 ай бұрын
Only 3 ways to avoid inheritance tax? What about spending before you die? Great presentation,many thanks 15:11
@Inheritancetaxadvice4 ай бұрын
Yes of course this is an optuiion but most of our clients are already achieving their lifestyle and so passing the assets on is moreimportant than simply spending more
@firmbutton64854 ай бұрын
Living in france, I want to leave my estate (uk and french property) to my son who wants to live back in the uk. Is this possible?
@Inheritancetaxadvice4 ай бұрын
Yes itis not a problem - both properties will be part of your estate if you do it via your Will if you are Uk domicile. If you gift during lifetime if they are not your main residence CGT will arise
@firmbutton64854 ай бұрын
@@Inheritancetaxadvice I am tax resident in france though. Is that an issue?
@Inheritancetaxadvice4 ай бұрын
It depends on your circumstance - Go to our website and pay for your initial advice is your best option as this is too complicated to deal with any other way
@kbc1384 ай бұрын
Thank you for the info. I just like to point out that the voice volume is a little lower than some of you other videos.
@ajay21684 ай бұрын
Perfectly explained! ❤
@tokenizegames5 ай бұрын
❤
@tokenizegames5 ай бұрын
very informative charles 👍
@tokenizegames5 ай бұрын
thanks for this. so basically, if we decide to leave the uk best to close bank accounts and sell all you got and renounce the uk passport.
@Inheritancetaxadvice5 ай бұрын
Yes you have to cut all ties with the UK but hold fire for a while as there is talk of changing IHT to being residency based and not domiclie based and so if you leave for over 5 years you may be ok but the decision on this has not yet been made
@tokenizegames5 ай бұрын
is there a trust suitable for digital assets such as bitcoin?
@Inheritancetaxadvice5 ай бұрын
In principle a Trust can hold bitcoin but it generates a lot of legal complications and so we would not advise you do it
@tokenizegames5 ай бұрын
❤
@tokenizegames5 ай бұрын
so as long as you have a uk passport you are taxed for iht?
@Inheritancetaxadvice5 ай бұрын
Yes as long as you have any ties to the UK but the passport is a big tie
@tokenizegames5 ай бұрын
very informative. thanks Charles
@Inheritancetaxadvice5 ай бұрын
Hi - glad you find our videos helpful
@whitewittock5 ай бұрын
what's the right way to avoid iht for between 1m and 2m
@Inheritancetaxadvice5 ай бұрын
Hi _ There is no right way - there is only the right way for you. Everyone has different circumstances and will make different decisions - Get advice - formulate a detailed plan for everything to do with your finances and IHT mitigation is part of that plan and then implement the plan - this is right and most effective soloution.
@whitewittock5 ай бұрын
@@Inheritancetaxadvice to put it another way why do you say FIC is for more than 2m? already paid a lot to someone who had no ideas, talking about 1 house and 1 btl both worth about the same
@Inheritancetaxadvice5 ай бұрын
@@whitewittock Hi We cannot get into a full dialog on this platform - I would respectfully suggest you attend one of our free Saturday webinars and get all your questions answered properly
@James-ve5ey5 ай бұрын
What are the tax implications of this though. Like is CGT payable on transfer?
@Inheritancetaxadvice5 ай бұрын
Best bet - go oto our website where the FIC videos are all organised and watch some of them to understand but you should pay no CGT
@Amg187uk5 ай бұрын
Great presentation. I understand things a lot more clearly now. Better than a lot of the social wham bam short videos. Thank you
@Inheritancetaxadvice5 ай бұрын
Thanks for your commments - there plently more videos like this on our channel
@adamwilliams53726 ай бұрын
Thans for this
@adamwilliams53726 ай бұрын
Thank you for this
@grantmail41126 ай бұрын
Short and precise..thanks
@tokenizegames7 ай бұрын
charls can you make a video about crypto into trusts ? deep dive into TRUST and Crypto
@Inheritancetaxadvice6 ай бұрын
Hi Yes thats seems like a good idea - will look at it but will take a while
@naveedkhanzeb2058 ай бұрын
Can you still buy property with a mortgage in a property investment company
@Inheritancetaxadvice8 ай бұрын
Yes you can and these days most professional landlords control their property portfolios via Ltd companies. An FIC is simply a LTd company with tailor made articles of association and shareholder agreements