gift with reservation?

Suggest you read King Lear first!

"stuart noble" things away? If I give all my assets to my kids and they, purely out of the

That's mentioned in a lot of tax books I've had from the library. Sometimes I think they're all lifting text from each other just to say they've published a book. Nobody talks about the definition of "reservation". If I buy my daughter a car, that's "with reservation". Fair enough. If I give my daughter the money and she buys the car, that's "without". But, if she gives me a lift to work in it every day, that's "with". So my original point is that if I give assets away as outright gifts and my daughter decides later that I'm a poor old sod who deserves a monthly income, am I benefitting from the original gift? Well obviously, but not by design.

"stuart noble" and she buys the car, that's "without". But, if she gives me a lift to work

The longer the interval between the gift and any reciprocal arrangement, the less likely an IR challenge would succeed.

I can't see that the interval matters. If the money is technically hers and I have no way of retrieving it, surely there cannot be a reservation.

"stuart noble" I have no way of retrieving it, surely there cannot be a reservation.

Indeed. But if a few hours/days later, there is some form of reciprocal arrangement, it tends to cast doubt on whether the original gift was such an "outright" gift.

If "doubt" is sufficient grounds, then presumably no gift can ever be safe. I'm glad the criminal law doesn't work in the same way. Reading between the lines, discretionary trusts are the only avoidance schemes likely to escape Gordon's new powers of retrospective doubt i.e. he'll settle for half the tax up front if you can be bothered to set the thing up. I wonder what the practical differences are between doing this during your lifetime and writing it into your will. Would your offspring inherit a load of admin and have to spend the tax savings on professional fees? My local STEP solicitor charges 250 an hour and, of course, cannot begin to estimate how long the job might take. It's rather like canoeing down the Zambesi with Victoria Falls up ahead and the river banks packed with crocodiles.

In message , stuart noble

IIRC the govt says it has no intention of interfering with discretionary trusts, which rather sounds like the others are for the chop eventually.

Half caught @ 20%, then 6% every 10 years. I have no idea what happens taxwise if they're written into the will.

In message , stuart noble writes

I see what you mean, but I think you may misinterpret Gordon's objective of clamping down on IHT 'schemes' as opposed to clamping down on 'discretionary' trusts per se.

Well fully caught, but at the lifetime rate! (Which is, as you say, half the death rate)! Also, (and I admit to pedantic mode here) the periodic charge can be 'no more' than 6%, not 6% fixed.

No entry charge, just a periodic charge.

"stuart noble" Zambesi with Victoria Falls up ahead and the river banks packed with

At £250/hr he must be a top-notch professional working for City clients! He should also know about taxation - something most solicitors know next to nothing about.

So why would anyone go the lifetime route?

It's a she actually, and sending 3 line e-mails as MSWord attachments doesn't inspire confidence, or suggest she's in any hurry. I suspect that STEP is primarily a self-interest group looking to justify exorbitant fees.

In message , stuart noble

There are other reasons than taxation to use Discretionary Trusts.

Presumably, because it enables the settlor giving stuff to a child who has turned into a drug addict?

"stuart noble"

No doubt, but is it a fact that you don't pay 20% IHT if the trust is written into the will?

As a member or a customer?

"stuart noble" >tell you quite a bit more about that from personal experience :)

A customer of a few members :)

A glutton for punishment then?