Inheritance Tax
“I’m not worth a lot” is a phrase you may have heard, or even spoken yourself. The truth is, none of us know how much our estate will be worth when we pass away. But if the total is more than £325,000 your estate may have to pay Inheritance Tax when you pass away.
£325,000 may seem like a generous allowance, but with property prices rising, anyone who owns a property and has other assets could easily have an estate that faces a large tax bill when they pass away.
That’s why at Castle Family Legal we tailor our advice to do the best for you, for your estate and for your loved ones. From specialist Wills that can maximise your tax-free allowance, to advising of ways to reduce your estate’s Inheritance Tax bill, we’re able to offer an exemplary service to all of our customers.
Please give us a call or send us an email today and we’ll happily contact you at a convenient time for a no-obligation chat.
We’ve produced a specialist Guide to Inheritance Tax if you would like to read more about this yourself.
You can also visit our Inheritance Tax FAQs page, and if you have additional questions for is then please feel from to contact us and we’ll get straight back to you.
Inheritance Tax FAQs
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Inheritance Tax (IHT) is the tax payable to the Government on the value of a deceased person’s estate. Whether an estate is liable for IHT depends on its value.
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The threshold is currently £325,000. This is known as the Nil Rate Band. That may seem like a lot of money, but many estates are worth a great deal more than this.
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The current rate is 40%. That means that 40% of the value of an estate about £325,000 may be subject to IHT. However, there are a number of exemptions and gifts that are not subject to IHT that can be used to reduce an IHT bill – see our useful Guide to Inheritance Tax.
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Usually, the Executors of the person who has passed away pay the Inheritance Tax bill out of the estate funds.
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Any Inheritance Tax must be paid by the end of the sixth month following the death in order to avoid interest charges. This may seem like a long time, but bear in mind that the Executors may be waiting to sell a property so that they can pay the tax bill. Six months could go by very quickly.
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No, there is no Inheritance Tax due on gifts between spouses or civil partners. However, when your spouse/civil partner then passes away, there is a chance that their estate may then be liable for Inheritance Tax – so it’s a good idea to look ahead and plan for the second death as well as the first.
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Please contact us and one of our trained advisors will give you a call back to discuss your individual circumstances. We are always happy to have a chat on a no-obligation basis.
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There are a number of gifts which are not subject to Inheritance Tax and exemptions that can be used to reduce an estate’s liability for IHT. Please see our specialist Guide to Inheritance Tax for more information.
