Do you want to give away your home now, so that it does not suffer inheritance tax when you die?
If so, you may have problems with that. If HMRC can show that, although you no longer own your home but you still live there, they will say that you have made a ‘Gift with Reservation of Benefit’ and count the value as still belonging to you.
The same applies if you want to give away a property that you don’t live in but you receive rent from. If you give away an item such as a grandfather clock but keep it in your home – you are still receiving a benefit from it.
However, all is not lost: you can have your cake and eat it.
You can pay rent to live in your home; or you can use a ‘reversionary lease arrangement’; or you can use investments that take the capital value out of your estate but still allow you to receive the income. There are a number of options open to you.
For advice on all these and inheritance tax planning generally, contact Chris Milne TEP on 01630 411221 or by email at chris.milne@onionsanddavies.co.uk