Inheritance Tax

Inheritance Tax

What Is It?

Inheritance Tax is just that, a tax.  It is paid on your death on all your estate to include house, savings, household items, stocks, shares and possessions.  It is also payable on some trusts and gifts made during a person’s lifetime.

Many estates are not charged Inheritance Tax due to being below the threshold which is currently £325,00.  Tax of 40% is charged on the amount over this sum.

Anything left to a spouse or civil partner is exempt from Inheritance Tax.  When a spouse/civil partner dies, the unused part of their Nil Rate Band can be passed onto the surviving spouse bringing the maximum threshold up to £650,00.

Gifts Exempt from IHT

  • Gifts of up to £3,000 in each tax year plus up to £3,000 of the previous years allowance if unsued.
  • Gifts to individuals up to £250 each.
  • Wedding/Civil Partner Gifts as shown below:
  1. £5,000 by each parent or step-parent
  2. £2,500 by each grandparent or great grandparent
  3. £1,000 by others
  • Gifts to certain charities, political parties or gifts for national purposes (e.g. museums)

When is Inheritance Tax Due?

In the majority of cases, Inheritance Tax must be paid prior to the Grant of Probate/Letters of Administration being granted.

 

Long Term Care Fees

Whilst young, we often tend to ignore what may be around the corner.

One in four women and one in six men in the UK require some form of long term care arrangment.

Thousands of homes throughout the UK are sold each year in order to pay for long term care fees.  By planning your Will effectively and efficiently, these issues can be addressed.

For more information on Inheritance Tax Planning please call 015242 41824 or visit Storrs Wealth Planning