CA24 Part 8 beneficiary question

Discussion in 'Wills, inheritances and gifts' started by tatsumaki, May 28, 2018.

  1. tatsumaki

    tatsumaki Registered User

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    Situation: Assets amount to total of a single apartment worth 195,000e . No will.
    It is not intention to sell the apartment.


    Question: Could 6 group B beneficiaries be named to inherit 32,500e each (right up to tax free allowance). Therefore 6x 32,500 = 195,000e.
    The deed/ownership of the apartment is then assigned to all 6 of these group B beneficiaries with equal share.
    Therefore, there is no inheritance tax to be paid.
    Is this scenario plausible or am I missing anything?
     
  2. Vanilla

    Vanilla Frequent Poster

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    Are the 6 beneficiaries entitled on intestacy?
     
  3. tatsumaki

    tatsumaki Registered User

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    Yes, all would be entitled. Say decided that way 'first' person entitled on intestacy
     
  4. Vanilla

    Vanilla Frequent Poster

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    I don't understand. Either they are entitled or they are not. It is not up to anyone to decide.
     
  5. tatsumaki

    tatsumaki Registered User

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    sorry yes, they are all entitled.
     
  6. tatsumaki

    tatsumaki Registered User

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    I got mixed up thinking about 'order of who would be appointed administrator. Yes they'd all be entitled.
    Is that scenario plausible?
     
  7. Thirsty

    Thirsty Frequent Poster

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    Think this through - six people owning one apartment sounds like trouble just waiting to happen.
     
  8. Vanessa

    Vanessa Frequent Poster

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    I agree there could be trouble down the line but first the property must be distributed among the six and registered.
    After that they can discuss what to do. Some may be willing to sell their share to another. Where the big trouble will start is if one wants to cash in and the others dont and won. buy the share either
     
  9. tatsumaki

    tatsumaki Registered User

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    So would you agree its a plausible way to avoid inheritance tax?

    Alternatively, could the 6 people be named as beneficiaries and then apartment simply sold for same price?
     
  10. mf1

    mf1 Frequent Poster

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    Are you saying that there are other beneficiaries also entitled?

    Or there are just 6 beneficiaries?

    And the apartment is either worth 195K or its not.

    And if there are only 6 beneficiaries, they have not received prior aggregable benefits, and the apartment is worth 195K then there is no inheritance tax due.

    Whats with the "plausible way to avoid inheritance tax" bit so?

    mf
     
  11. Thirsty

    Thirsty Frequent Poster

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    The executor (or administrator) in this case can sell the property and divide the proceeds, it doesn't have to be registered to new owner(s) before sale.