Inheritance Tax

[aoh07]

Hi There, hopefully someone can shed some light on my situation. My grandmother, who is still alive has given me a site. My solicitor ios now telling me that I will be subject to inheritance tax in order to get the site into my name. Is there any way around this?

 

[mf1]

"Is there any way around this?"

Its Capital Acquisitions Tax. And no.


mf

 

[COLAKO]

There in only one way of getting around this tax (as far as I know). If it's a house, you must live there for 3 years up to the death of the person who gifted you the house. If it's land, then you have no way out of it. People set up life policies to cover the grandmother (for the amount of tax estimted). This doesnt get rid of the bill but means you will at least have the money to pay for it. The snag is that your gran has to pay the life assurance premiums. If she's quite old, it can be expensive.