There is a widespread lack of understanding regarding inheritance tax. Put simply, the first £325,000 falls under the ‘nil rate’ band, so there would be nothing to pay.
Thereafter, the Treasury takes 40% of the estate. The position has been changed recently so that, in many cases, for example, a surviving spouse will automatically be able to utilise the unused portion of the deceased spouse’s nil rate band.
How do I avoid Inheritance Tax?
- Make a will
- Arrange a will trust
- Reduce the estate whilst alive
- Use Insurance policies
- Make lifetime gifts
Without a will, there may be uncertainty if any of the above applies to you.
Planning to avoid Inheritance Tax can be a complicated procedure requiring expert legal help. It needn’t be payable in many situations. For an informal discussion about your affairs contact our Wills & Probate team today