Quote:
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Originally Posted by TSM
Quote:
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Originally Posted by e.d.
Why buy a house, the government will only sell it to pay for your care when you go senile.  |
Thats why you sell it to your children for pennys and make sure there is a contract that says that they cannot evict you until you have died. |
Sadly that doesn't work - it has to be an absolute gift for inheritance tax purposes, otherwise it's 'a gift with reservation'. Under the Finance Act 1986, section 102 and schedule 30, gifts subject to a reservation are taxed on death as though they were still the donor's own. So I'm afraid it doesn't work.
Shall I next tell you about how to place the property in a discretionary trust in a bid to get around the rules?
