Inheritance Tax Lessons from the Great and Good
Six common sense and legal ways to pay less tax; all used by well-known people (and for you too).
- Ronnie Corbett sold his large family home and gave the proceeds to his children. Since he lived on for a full seven years after the gifts there was no IHT to pay. Even not surviving the whole seven years would have saved some tax.
- Tony Wedgwood Benn’s family all agreed to vary his wife’s will after her death. ‘Deeds of variation’ are common ways of a family agreeing to the legacies of a will in the most tax beneficial way.
- Jim Slater invested heavily in shares listed on the London Alternative Market which are exempt from IHT. Although a specialist area of investment there are many well-established companies on this Market. Take specialist advice.
- Rik Mayall was an unfortunate example. He made no Will at all which not only led to more tax being paid than necessary but also to distant relatives getting unintended windfalls.
- Peter Ustinov left more than one Will in different countries because he had assets overseas. The resulting confusion absorbed over £10m of his assets in legal fees.
- Denis Healey's estate (the late Labour chancellor 'squeeze the rich until the pips squeak') has saved £75,000 by donating his correspondence to an Oxford library. Are your papers of national importance?
Any of these ring a bell with you? Talk to us now.