What is inheritance tax?
Inheritance tax is due on a person's estate after they've passed away, subject to certain conditions:
- The estate must be worth over £325,000
- Gifts made 7 years or more before the person died aren't liable to inheritance tax
- Gifts made to charities during a lifetime or in a will are exempt
- Certain lifetime gifts are exempt from inheritance tax
The deceased's estate will be valued after their death to determine whether or not inheritance tax is payable.
At the time of writing the rate of inheritance tax is 40%. This is payable on anything above the £325,000 threshhold.
Inheritance tax is usually paid from the deceased's estate by the executor
How can you reduce your inheritance tax liability?
If you're worried about the inheritance tax that might be payable when you die, the first step is to get legal advice based on your personal circumstances.
We can assess the assets in your estate and give you advice on how to plan ahead with a view to reducing your liability. We can also give advice about how to make gifts during your lifetime in a tax efficient way.
Book your appointment now to speak to our inheritance tax expert and start planning for your future.