Let Picasso Pay

The family of Lee Kun-hee, the late chairman of Samsung Electronics, are reportedly donating 23,000 works of art to South Korean Museums in order to reduce his estate’s $10.8bn inheritance tax bill. The inheritance tax liability (which equates to approximately 12 trillion South Korean won) is considered to be one of the largest inheritance tax payments both in Korea and globally. Lee Kun-hee was a Korean citizen but it is interesting to consider how this would work in the UK.

HMRC’s acceptance in lieu scheme allows estates which are liable for inheritance tax to apply to settle the tax by offering heritage property in full or part payment of the inheritance tax liability. It works by allowing the executors of the estate to transfer important cultural, scientific or historic objects or archives to the Nation. Any item accepted under the scheme is assigned to a public library, archive or museum and preserved for the public benefit.

Anyone who is liable for inheritance tax can apply for this scheme so it’s something to consider the next time the Antiques Roadshow is in town!

About the Author

Claire Thompson is a full member of The Society of Trust and Estate Practitioners (STEP).

Claire specialises in all aspects of private client law including Wills, Powers of Attorney, Court of Protection matters, Estate Planning and Estate Administration.

Claire can be contacted on 01548 854927 or c.thompson@bartons.co.uk.