The Financial Times quotes Sally Ashford on inheritance tax and devising a property strategy for relatives in their later years.
Following an interview with Claer Barrett at the Financial Times, Sally Ashford, Partner and Head of the Guildford Office at the Firm, comments on the trend of inheritance tax and the issue of the concept of living in your biggest asset and wanting to pass it down to the family – and the delicate balance of wanting to give your home away and save tax, or continuing to live there.
Sally specialising high net worth individuals and family business owners in relation to their estates and family succession planning, including inheritance tax mitigation and trusts.
In the article, Sally explains:
“Do not underestimate the emotional impact of losing control of the roof over your head. It might make perfect sense from a tax point of view, but older people can feel very vulnerable.”
She advises her clients to work through a long list of “what ifs”.
“What if you move in together, but fall out with your child? What if you need more care than they can provide? What if your child’s marriage breaks down, or if they die — will your position be protected? And what happens if one of you wants to sell, for whatever reason?”
She has seen examples of multigenerational living working out well, and some clients have saved “substantial amounts” of IHT. But there is also high potential for disputes, especially if multiple siblings — all of whom could potentially inherit — are involved.
Sally, concludes by saying:
“Tax shouldn’t be the driver of any decisions. Decide what you want to achieve first, then get advice to work out the most tax-efficient way of doing it,” she says.
Read the full article in The Financial Times here (subscription required).