Better this, or 100% Inheritance Tax?

[Tessa K]

It’s easy to avoid paying anything. It’s odd that any inheritance tax is paid at all. I assume it comes from people who died much younger than they expected, people who dislike their descendants or people who want to give money to the government.

There's another category, which is people who mistrust their descendants. Those who assess, correctly or otherwise, that if they give too much away too soon, their children, much as they love them, will abandon them, or mismanage the money. We have a notorious case in our family where the parents should have been a bit more mistrusting, and had no shortage of evidence arguing for caution.

Or in my case, control freaks who won't give away a penny however much sense it makes or even allow Power of Attorney.

[Woodchopper]

It’s easy to avoid paying anything. It’s odd that any inheritance tax is paid at all. I assume it comes from people who died much younger than they expected, people who dislike their descendants or people who want to give money to the government.

There's another category, which is people who mistrust their descendants. Those who assess, correctly or otherwise, that if they give too much away too soon, their children, much as they love them, will abandon them, or mismanage the money. We have a notorious case in our family where the parents should have been a bit more mistrusting, and had no shortage of evidence arguing for caution.

Certainly, and they may believe that the descendent will be better off getting the money in ten years time after paying inheritance tax rather than getting it now when they are too immature to use it wisely.

The point remains that people pay inheritance tax voluntarily or by accident.

[Gfamily]

Certainly, and they may believe that the descendent will be better off getting the money in ten years time after paying inheritance tax rather than getting it now when they are too immature to use it wisely.

In which case, the money can be put in a trust - with the beneficiary being in receipt at age 'whatever'. If the trustees think there's a good reason to release the money for the benefit of the descendent (a property purchase or to pay for education etc) they have the discretion to do so at an earlier point.

[Woodchopper]

Certainly, and they may believe that the descendent will be better off getting the money in ten years time after paying inheritance tax rather than getting it now when they are too immature to use it wisely.

In which case, the money can be put in a trust - with the beneficiary being in receipt at age 'whatever'. If the trustees think there's a good reason to release the money for the benefit of the descendent (a property purchase or to pay for education etc) they have the discretion to do so at an earlier point.

Yes, good point.