WHY GLOVERPRIEST?
Inheritance Tax is tax charged on the value of your estate on your death. The first £325,000 of your estate is not subject to Inheritance Tax. Anything in your estate which is over this threshold is subject to Inheritance Tax which is charged at 40%.
What is Included in Inheritance Tax?
Inheritance Tax payable on death is based on the value of your estate when you die. This will include:
- Everything you own at the date of your death
- Your share of anything owned jointly with your spouse or any other person
- The value of any trust fund from which you are entitled to benefit
- The value of any gifts made by you in the last seven years before you die and which are not covered by any exemptions
- The value of any assets which you have given away but still get a benefit from
Reducing Inheritance Tax
There are a number of actions that can be taken to reduce inheritance tax. They include:
- writing a Will;
- making gifts;
- reviewing asset ownership;
- minimising your estate;
- considering marriage;
- using trusts;
- reliefs (agricultural and business).
Inheritance tax planning should never be considered in isolation, so our experienced lawyers will advise on how inheritance tax, capital gains tax and income tax interact, helping you avoid unintended consequences.
