I'm reminded of a news story which hit the headlines in 2010
when considering gifting in terms of Inheritance Tax. This story
concerned a couple in Dorset who had been using a vase as an
umbrella stand for over 50 years and upon inspection by an antiques
dealer confirmed that the vase was in fact an 18th century Chinese
vase valued at £500,000; more than the couple's house was
worth. This couple saw a huge increase in the value of their estate
overnight. This scenario highlights issues to people who have
assets which are of a substantial value other than just their main
home and wish to ensure they are not stung by 40% Inheritance Tax
on their estate after their death.
Suppose the couple realised how much this vase was worth and in
turn gifted the vase to their daughter, having promptly packed it
off in plenty of bubble wrap and polystyrene popcorn and duly
delivered to their daughter's home, in an attempt to decrease
the value of their estate for Inheritance Tax
