paying a solicitor for inheritance tax

[i***@invalid.invalid]

I have a question which you may find interesting.

At some point in the next few years, I will have to pay UK inheritance
tax on a UK residential property, probably in the neighbourhood of
50,000 pounds.

I am currently signed up with a trustworthy firm of solicitors who
have been in the business for at least 30 years.

I would like to pay the solicitors the GBP 50,000 now, before the
person dies. I have no use for the money (seriously) and it would
simplify matters (for me) when the person dies if the lawyers had the
money in their account.

Does this sound sensible? If I asked the lawyers to do this for me,
would they be likely to agree?

Obviously I'm a little worried they could take the money and then deny
doing so, but this firm we've known for many years and they are as
trustworthy as any such firm can be.

Advice?

[David Woolley]

Post by i***@invalid.invalid
At some point in the next few years, I will have to pay UK inheritance
tax on a UK residential property, probably in the neighbourhood of
50,000 pounds.
I would like to pay the solicitors the GBP 50,000 now, before the
person dies. I have no use for the money (seriously) and it would
simplify matters (for me) when the person dies if the lawyers had the
money in their account.

Just the arrangement itself is going to need specialist advice. What you
seem to want is for them to operate as trust for you. It may well be
treated as a discretionary trust, although with current interest rates,
it would probably only attract standard rate tax, although it would cost
money to administer it.

If it just amounts to a bare trust, I don't see what advantage it gives
to you over keeping it the bank.

You need to be absolutely sure that you won't need it in the meantime,
otherwise there could be a question of deprivation of capital for means
tested state benefits.

I'm guessing you have been given the property as a gift with reservation
of interest, which is why it is not a PET, but the gifter hasn't got he
funds to cover the tax and you don't want to sell it to cover the tax bill.