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Hi. I have a question about inheritance. I am retired and looking to buy this year or early next. Looking forward, from an inheritance point of view, would I be better buying in my name coupled with my daughters to avoid them getting into a fix. They would inherit the property in any event. Thanks in anticipation.
Posted: Fri Aug 7, 2020 4:52pm
Legendary helpful member
If the property is in either just your name or in joint names, your daughter would be subject to making an inheritance tax declaration, and paying any tax due, before she could inherit your share of the property. You can't avoid IHT - even if no tax is due, the declaration still has to be made before any transfer of assets takes place.
The alternative is if your daughter owns the property and you're just the occupant. There's a potential problem in that if your daughter goes bonkers, or is declared bankrupt, then you might find yourself without a home to live in.
My personal intention is to set up an account or accounts for my daughter and my late wife's daughter, accessible on my death, and containing sufficient funds to enable our daughters to be able to afford to pay the IHT which will be liable when I die.
jimtaylor wrote on Fri Aug 7, 2020 4:52pm:
If the property is in either just your name or in joint names, your daughter would be subject to making an inheritance tax declaration, and paying any tax due, before she could inherit your share of the property. You can't avoid IHT - even if no tax is due, the declaration still has to be made be...
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...fore any transfer of assets takes place.
The alternative is if your daughter owns the property and you're just the occupant. There's a potential problem in that if your daughter goes bonkers, or is declared bankrupt, then you might find yourself without a home to live in.
My personal intention is to set up an account or accounts for my daughter and my late wife's daughter, accessible on my death, and containing sufficient funds to enable our daughters to be able to afford to pay the IHT which will be liable when I die.
Thank you Jim. Some might say that my daughters are already bonkers😀 Much appreciate the advice.
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