Ian,
Inheritance tax (IHT) kicks in at £263,000. The value of estates above that level is taxed at 40%, and Gordon Brown has ignored all pleas to whack up the threshold. Here's how our chairman could minimise the damage.
Trusts: Assets can be put in trust for children or grandchildren, which reduces tax liability.
Home owners: If “Deadly Towers” is owned as 'tenants in common' rather than 'joint tenants' (as most people do) then when one partner dies, their half can be left directly to (say) the children. The surviving spouse's estate is reduced, but they can still live in the house.
Gifts: He can give away £250 each year to as many people as he likes (which I take would be nobody). He can also give £3,000 a year to one or more recipients, and can roll over any unused allowance to the next tax year.
Seven-year rule: He can gift money or any other asset to anyone - and they won't count as part of his estate, so long as he survives at least seven years. (Taper relief may be available if he holds out for more than three years.) Has he left this too late?
Charity: Any donations left to charity, or even a political party, are tax-free. I would anticipate that charity would stop at his doorstep or could he claim AVFC are a charity as we make regular donations to his bank account!
I doubt that he actually believes that he will ever die (he may have come to some arrangement concerning this). :winkold: If he does accept that the sands of time will one day run out for him, I suspect he is unwilling to consider just how close that prospect may be. He has the wealth to get the best possible advice on how to avoid IHT if he chooses to seek it. But, I would anticipate that he does expect to take his money with him when the time comes.
Ps - I wonder if his relatives pay for their tickets? :roll: At a time when we are so short of cash any help would be most appreciated no matter how infrequently it might be forthcoming.