Inheritance Tax (IHT) is defined as tax on a person’s estate, made up of their possessions, property and assets, after they die. While no tax will be due if an estate’s value is less than £325,000 or if you leave everything over this threshold to a civil partner, spouse or charity, HMRC must still be informed.
The £325,000 threshold can be increased to £500,000 if you leave your property to your children, and if you’re in a civil partnership or marriage and your estate is valued at less than the threshold, any unused allowance can be added the threshold of your partner when you die. This enables their threshold to be as much as £1m.
Standard IHT rate is 40% and this is only charged on the remainder of your estate that is more than the set threshold. However, it’s possible to pay a rate of only 36% if 10% or more of your estate’s net value is bequeathed in your will to charity.
If you have concerns about the inheritance tax bill your family will face when you die, and require financial planning services in Shropshire, you can rely on our expert team for advice.
Using tax mitigation strategies, Hartey Wealth Management can help you reduce the amount of inheritance tax due on your estate and ensure more of your assets and earnings are received by your intended beneficiaries, while making sure your financial security is never jeopardised during your lifetime. Get in touch with us today for any assistance required.