Inheritance Tax on Property Owned Abroad.

The other thing is HOW will the Revenue ever find out if a property owned and presumably only registered abroad has been transferred.

A way to do this is to put the property in the name of a limited company, with the present owner as a sole shareholder, and the present owner making a Will giving his shares to the new owner. That way there is no need to even tell the foreign property registry of any change of ownership.

IANAL but AFAIK this sort of thing is commonly done with foreign owned properties, to avoid foreign property transfer taxes.

I believe this type of transaction is being nullified by our European neighbours. IIRC, France has already passed the relevant legislation to prevent circumvention of its inheritance laws?

Perhaps the best approach as mentioned earlier is the family trust. Another option, would be (if available a reverse mortgage) with the proceeds being gifted to your children yearly below their thresholds tax rates. Upon his departure the accumulated monies and balance could then be used to purchase the home back or another vacation property through your trust and thus your maintenance, tax and other expenses could be deducted from the rent you pay the trust. ;-)

Or... if the property had some history it could be transferred to the National trust (or it's Italian equivalent if available) with the corresponding tax benefits and accommodation benefits.

Unless I am mistaken, if I heard correctly the National trust in England allows for the former owners and descendants to reside in the property providing that the property is open for tours for at least 2 weeks a year (a super sweet deal). A good asset manager should be able to find some very workable approaches for you & your family.

Stephen.

Yes, I've heard that too. But they have no control over UK law, and I gather there are ways to still do this (using the ltd co approach) completely legally. One accountant explained it to me though I don't recall the details.

In the end, how can they tell, if e.g. the shares are held in a trust, or in an offshore company?

Now Bored, tell me.... you don't do any of this for a living??? Neat!

Your last paragraph might explain the # of tea-rooms springing up everywhere...

I am sure that I have heard that holding property in a company in France attracts a higher transfer tax in the first place and higher annual taxes so is unattractive unless the potential savings are worth it. I have never done this so I do not know the answer.