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bigduckontax, Accountant
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I have inherited some money and would like to invest it in

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I have inherited some money and would like to invest it in an apartment in Italy. I would like to protect that investment from future probate for my children. Does it make sense to then purchase that apartment via a private limited company?

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Not if you are a shareholder in the company, for if you are, then the value of the company will be included in your assets for Inheritance tax (IHT) purposes. IHT kicks in at 325K and is at a 40% flat rate. Inter spousal and charitable donations are outside the 325K envelope. Were your children the shareholders then this might be avoided, but HMRC might well look askance at the arrangement and class it as a gift. However, if you survive by seven years than you would be in the clear from a gift point of view as the add back provisions would have expired. You could protect your children from the add back by a reducing term life insurance policy.

I do hope that you have found my reply of assistance.

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Customer: replied 9 months ago.
I see. Many thanks.

Thank you for your support.