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What is Inheritance Tax?
In simple terms, Inheritance Tax is based on the value of your
home and its contents, your savings and investments, and any
other assets that you own in your name or jointly with others
when you die. Assets passing to your spouse or to charity will
be excluded. Qualifying business and agricultural property can
also attract relief of up to 100%. Certain gifts that you may
have made in the last seven years may be taken into account.
Debts outstanding at the time of death will normally be
deductible in determining the value of your taxable estate.
Inheritance Tax Planning & Advice
Without Inheritance Tax planning, many people can end up leaving
a substantial tax liability on their death so that bequests can
have a much lower value than anticipated. In some cases, the tax
burden left on beneficiaries, particularly in respect of
property, can result in the beneficiaries having to sell rather
than retain the asset in order to meet the inheritance tax
liability. Although transfers between husband and wife are tax
free, such transfers really only postpone the tax liability
because tax is payable on the estate of the surviving
spouse.
Inheritance Tax is currently charged at 40% on the value of
estates above £255,000. This figure can easily be reached when
taking into account the value of property, life policies and
savings. It is also worth bearing in mind that the value of some
assets, particularly property, may have increased significantly
since they were purchased.
Learer Roberts specialise in providing solutions to minimise
your Inheritance Tax liability. We want your intended
beneficiaries to benefit most from your estate, not the taxman.
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