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Clare, Solicitor
Category: Law
Satisfied Customers: 34906
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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I am 64 years old, I own 2 properties worth £4,400,000.00,

Customer Question

I am 64 years old, I own 2 properties worth £4,400,000.00, one I live in and one I let out. My income from the let is approximately £60,000.00 per year and I have £500,000.00 in a bank account from a lump sum divorce receiving .0025% interest per year. In order to try to avoid a large inheritance tax bill, I am going to gift both properties to my 20 year old daughter and buy and move into a small home/apartment near our family home. This way we can easily be together with family and friends for all of the holidays. There is a small house I want to make an offer on this week ( £340,000) and I am wondering if this plan will help me to avoid paying inheritance tax. I have been diagnosed with a few health issues and I have arthritis so I am very happy to down size. I was going to downsize after my 20 year old marries but I think I should do this now, considering the 7 year wait for the benefit.
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
HiThank you for your questionMy name is ***** ***** I shall do my best to help youProvided you survive for 7 years you will indeed avoid Inheritance Tax if you gift the properties in this way.However your daughter is very young to have these funds and you may wish to consider the potential implications for her in terms of potential Capital Gains Tax As a bare minimum you should discuss this with your accountant Clare