From: "John Smith" 
Newsgroups: uk.finance
Subject: Re: inheritance tax - anyway to avoid for Disabled son?
Date: Tue, 20 Apr 2004 00:10:39 +0100

Hi Margaret,

I am in a similar kind of position with my Mum and, sadly, when I took out
legal advice a few years back I wasbasically told that the rules are
changing so often that something done today might not be enforceable
tomorrow - i.e. in my Mum wanting to gift the house to me or myself buying
part into the house, etc, etc.

Our biggest fear was my Mum - you should consider this - being taken ill and
the local council wanting to take the house off her to sell it to pay for
any care that she might need. Sadly, this is all too common nowadays.

One thing that I definitely think you should talk to a solicitor about is
Enduring Power of Attorney - not just who looks after your son when you are
no longer here (I don't know the extend of your son's disability) but also
what happens if, frankly, you lose your marbles in the next few years. Then,
sadly, what you want to happen re your OWN car and the care of your son
might be taken out of your hands and complete strangers might be making the
decision - it would probably be your local Social Services who, seeing the
property you own, will no doubt lick their lips and, arguing that they are
concerned about your well-being and not your sons, demand ownership of your
property to pay for your care.

I really think you need to look into Enduring Power of Attorney and seek
legal advice on the ramifications of it.

Sorry not to be more helpful.


John/


"Enchanting Ari Bowles"  wrote in message
news:3r38805ikvl49jelu84dujautk53ng5bfb@4ax.com...
> I have a large house I live in and a flat rented out for income. i am
> 68 years old and have a disabled son who i wish to leave in a secure
> position so as to provide him comfort and care without money worries.
> The flat is in trust to him but i understand that counts for nothing
> as i am living off the rental income. The total value of this estate
> is £400,000 and we have calculated this would require my son to pay up
> to £58,000 inheritance tax. This would mean he has to sell the flat to
> pay this therefore making his source of income less stable. I cannot
> transfer any of the property to him at present as it would cause his
> care package to be taken away by the local council. Does anyone have
> any solutions or suggestions which will help with this situation?
> There is no extra money to cover for this.
>
> Margaret