What is Inheritance Tax?
An inheritance tax is a tax that needs to be paid on an estate that someone has left behind when they passed away. Debts and outstanding bills are deducted from the gross estate value and inheritance tax is usually 40% of the entire value above the threshold.
There are exceptions to paying inheritance tax and these include if the value of the estate is below the threshold of £325,000.
How We Can Help
Our Wills, Trusts & Probate specialists can advise you on strategies for minimising the amount of Inheritance Tax payable by your loved ones on your death, as well as the setup and administration of tax-efficient vehicles such as Trusts for future generations.
We can provide inheritance tax planning advice on the following aspects:
- Inheritance tax planning and estate planning
- Transferring tax-free allowances to wives, husbands and civil partners
- Non-domicile and international inheritance tax
- Filing inheritance tax returns
- Charity donations
- Trusts
- Appealing IHT decisions with HMRC or at Tax Tribunal.
Inheritance Tax Planning and Trusts FAQs:
Do I Have to Pay Inheritance Tax if I Have Inherited an Estate?
Inheritance tax is paid before you receive your share of the estate as it is the duty of the executor or administrator to report the estate value to HM Revenue and Customs. They pay the inheritance tax bill from the estate before sharing it.
If I Receive a Monetary Gift During the Donor’s Lifetime, Do I Have to Pay Inheritance Tax?
It depends on the value of the gift, the time you received it, the total amount of money they gifted to you and the value of the estate and the beneficiaries of the estate.
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