Best way to avoid inheritance tax?

[sam100]

My grandmother who is 84 is rather well off and currently money is in shares, the house and random bank accounts. Obviously one day there will be a time when she is no longer with us is it better for her to try to give away money while she is still able or better to keep hold of it or for us to pay roughly �160,000-�200,000 in the end later on. We are due to see an accountant to get some ideas but i just wondered if there were any other opinions anyone could give me.

[north star]

if she gives you any or all of her money then there will be no inheritance tax to pay if she survives for 7 years, There will be some tax relief if she dies in the mean time.( called 'taper' relief I believe).

Get some professional advice. I would not want to be paying the tax man anything, but my grandmothers wishes would be paramount.

[Eve]

The best way is to get a good accountant who specialises in estates of the elderly.

She should consider putting any life policies in trust.

[dzug]

There will be some tax relief if she dies in the mean time.( called 'taper' relief I believe).

MAY be some tax relief, but taper relief is much misunderstood and doesn't apply in most cases - only if you have gifted more than the nil rate band

[sam100]

Thank you for the majority of your answers they were most helpfull.

Tetjam & isac-hunt...not the most diplomatic people are we????

The only reason i am asking is because i lost my grandad to cancer two weeks ago and the finances have been left in a bit of a mess and we are just trying to sort it out.