'In this world, nothing can be said to be certain, except death and taxes.' - Benjamin Franklin
It is essential to plan for your death. One consideration is how much Inheritance Tax will be payable to the government. If your estate (cash you have in the bank or in investments, and any property or business you own) exceeds the Inheritance Tax threshold set by the Chancellor, your estate will pay tax of 40% of the extra when you die.
However, there is no tax to pay if the value of your estate is below the nil rate band, or you leave everything to you spouse/civil partner or to charity. If you leave at least 10% of the net value to charity the Inheritance Tax Payable is reduced to 36%.
There are also other tax reliefs available to use including the Residence Nil Rate Band Allowance, Annual Allowance and Potentially Exempt Transfers.
Druitts can recommend how to maximise Inheritance Tax reliefs and exemptions if your estate might be worth more than the Inheritance Tax threshold. We offer personal advice for your individual situation to reduce your Inheritance Tax liability. This can be through:
Our specialist lawyers, with careful planning, will be able to ensure your beneficiaries receive maximum value from your estate. Druitts Lawyers will be happy to discuss your personalised Inheritance Tax options with you. Contact Theresa and Laura today to reduce your inheritance tax bill.
Frequently Asked Questions
No, inheritance tax is paid by your estate on your death. It is paid by the beneficiaries of your Will.
The amount you pay is dependent on the value of your estate and the current nil rate band.
This is an amount set by the Chancellor. The current nil rate band is set at £325,000 until April 2028.
The nil rate band can be higher or lower depending on your personal circumstances. The change is due to using gifts or transfer of allowances between you and your spouse/civil partner.
This as an Annual Exemption. You can give away up to £3000 worth of gifts each tax year without them being added to the value of your estate on death.
A gift of unlimited amount which become exempt from Inheritance Tax if you survive the gift for a period of 7 years.
Teresa Williamson
Lawyer ( FCILEx )
Teresa specialises in wills, probate, trusts, administration of estates and lasting powers of attorney. Teresa is also experienced in all areas of family law.
Teresa Specialises In:
Laura Neerunjun
Private Client Executive ACILEx
Laura is passionate about her chosen area of work in the Private Client Department and about providing an exemplary service to her clients. Laura provides practical and clear advice to her clients in a friendly and approachable way.
Laura Specialises In:
We are always happy to discuss your requirements over the phone, feel free to contact us to see how we can be of help today!
