CA24 Part 8 beneficiary question

T

tatsumaki

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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?
 
I don't understand. Either they are entitled or they are not. It is not up to anyone to decide.
 
Vanilla said:
I don't understand. Either they are entitled or they are not. It is not up to anyone to decide.
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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?
 
Think this through - six people owning one apartment sounds like trouble just waiting to happen.
 
Thirsty said:
Think this through - six people owning one apartment sounds like trouble just waiting to happen.
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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
 
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?
 
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
 
but first the property must be distributed among the six and registered
Click to expand...

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.
 
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