House Value And The Taxman

However, there is not much you can do about the value of your house.

There are special restrictions to stop you giving away a house and continuing to live in it. It is counted as yours until you stop having any benefit from it at all.

So unless you give your home away outright and stop living in it at least seven years before you die, it will count as part of your estate. There is some softening of the rules in cases of medical or personal necessity. But normally the house you live in will have to pass intact, and if it is worth more than £110,000, then tax will be due.

A couple with a large estate which they own jointly should consider separating it so that they each own a part of it.

They should then draw up new wills each leaving their part to their children or grandchildren. If they do not do that, the children will end up paying more tax when the second parent dies. For example, an estate worth £800,000 will attract no tax if the first of a couple to die leaves £100,000 to their children and the remainder to the survivor and no tax when the survivor dies and leaves the remaining £100,000 to the children.

But if the first to die leaves the whole estate to the survivor who then dies and leaves the whole amount to the children, tax of £66,000 will be due on the total of £800,000.

Similarly, it is as well to skip a generation and pass on some property to grandchildren if leaving it to the children would then boost their own estate in later life.

Read More - Inheritance Tax Form And General End Tax

or Capital Gains Tax

Inheritance Tax Form And General End Tax

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