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Category: Law
Satisfied Customers: 21
Experience:  Moderator
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what is the best way to reduce a potential property inheritance

Customer Question

what is the best way to reduce a potential property inheritance tax bill in the future on property worth about £5 million?
Submitted: 4 years ago.
Category: Law
Expert:  James Mather replied 4 years ago.

Hello, I am Law Denning and I am a practising solicitor in a High
Street practice. I have been an expert on this website in UK law since 2008.
During that time, as you appreciate, I have answered thousands of questions
from satisfied users on a variety of subjects.
Because we are all in practice with clients and court and other
users, I might not always respond in
minutes, particularly evenings and weekends. Please bear with me in that

It is my pleasure to try and assist you with this today. Please bear with me
while I gather some further information from you in order for me to be able to advise you fully.

-Could you explain your situation a little more?
Customer: replied 4 years ago.



Thanks for your response...


My mother has a property portfolio woth about £5 million. They are all in England. She has no mortgages. We are three siblings, and currently the tax bill is expected to be about 1.7 million. We have been discussing setting up a trust weith a company and the trust would be based in Belize... However, the company in question want approximately £450,000 in fees...


What are your thoughts?


Best regards XXXXX XXXXX

Expert:  James Mather replied 4 years ago.
We can advise on UK law but not Belize as the law may be different.
Is that OK. Will your mother be keeping control of the properties or living in them?
a tust in favour of who?
I need details of what is proposed please.
Customer: replied 4 years ago.



The trust is aimed to be set up with me as one of the trustees... However, we are concerned as to whether this is legal to set up in Belize, and also as to whether £450,000 is a complete robbery?


All the best - Fraser

Expert:  James Mather replied 4 years ago.
I actually asked several colleagues and finacial advisers deal with HNW clients if they could deal with this but have drawn blank, so I am going to have to opt out for another expert.
The most critical factor for UK tax purposes is what interest yr mother retains. If she is giving it away, then provided she genuinely gives it away and lives 7 years it is free of IHT
Expert:  Nicola-mod replied 4 years ago.

It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 4 years ago.

Please cancel my search - thanks for all your help