Anyone know anything about inheritance tax? Boring but important!

[edam]

Morning.

Dh's mother wants some advice about what she should do to minimise tax on her estate. I have NO idea where to start or who to trust to advise us - it's really hard to tell good financial advisers from dodgy ones unless you know something about the industry. And she's been ripped off by dodgy ones in the past.

She's got a house worth about 500k, a pension and some savings and investments (although I don't know how much, tbh - just need somewhere to start and can then have more detailed conversation with her). She's one of those elderly people who thinks she's poor but I suspect she isn't - just worried that if she spends her money it will run out at some future date. Maybe loads of capital but not huge income?

I think she wants to avoid it all going on nursing home fees, if she gets to the point of needing that level of care. And she doesn't want to move house.

If anyone can point me in the direction of a trustworthy source of advice, I'd be very grateful!

hi,
my dh is actually a will writer and will be able to give you some advice or refer you to someone else.
he's at football with our ds1 at the moment but when he gets back will ask him to reply to you

Ooh thank you Joe. MIL was thinking about doing one of those things where you put the house into joint names with your children, but a solictor friend of ours said the Inland Revenue have stopped that one.

useful advice here

and some good factsheets from age concern

eg FS40 would be relevant

thanks Iota that's very helpful.

She can give her house to her children and then pay them rent, a market rent and I think that still works even after the Finance Act 2006 but take some legal advice. Or she could sell it and give all the money away now and move in with one of the children although that's not what she wants to do. If she does that and lives 7 years the whole lot avoid IHT unless they change the law. Or she could do much the same but downsize to a £40k small house in Scotland or somewhere cheap. She can also put the pension fund monies to go into a trust as mine will to avoid IHT and any life insurance although she probably hasn't any at her age. She can give small amounts away each year without it counting as my father does and also bigger amounts if she can afford it so that if she lives more than 7 years on those she avoids IHT.