Inheritance Tax is basically the tax your "estate" must pay on your assets when you die. It is a variable tax, and one of growing concern for more and more people. Certainly, it is no longer limited to the very wealthy.
Fortunately, it is also a tax which can be planned for, and which certain mitigations can be deployed.
The threshold for the application of inheritance tax has been falling in real terms for a very long time. Such has been this trend, that now, in most counties in England, the value of the average home exceeds it.
The specific threshold does change from time to time, and is currently around £275,000. Effectively though, subject to certain provisions and exemptions, everything above this can be taxed at a rate of 40%.
INHERITANCE TAX PLANNING
Fortunately, a range of steps can be taken to reduce this exposure, and cut the amount you are liable to pay. These vary depending upon when you initiate the process, and what sort of approach you wish to adopt.
Hopefully, however, this site will assist your understanding of inheritance tax itself, and perhaps give an insight into some of the options available. Included are the following topics:
- An Inheritance Tax 'Frequently Asked Questions'
- An Inheritance Tax Glossary
- Basic Tax Benefit Steps
- What is a Trust Fund?
If you need any other information or assistance, please feel free to contact us.