Inheritance tax (IHT) is a mandatory government levy that must be paid by beneficiaries on a person’s estate when they die, if it exceeds the nil-band rate. Due to the recent spike in property value here in the UK, a greater number of Britons inheriting a home are facing IHT bills than ever before.
Large IHT bills can see the people an individual leaves behind struggling to make payments, rendering them financially vulnerable. Now, a new study has revealed that before an IHT bill has been issued, many inheriting properties will already need to take out loans to cover the costs involved.
The research showed that more than half of UK adults are now anticipating that they will inherit a minimum of one residential property during their lifetime. It also found that because of rising costs, an increased number will be driven to take out personal loans to pay for the process.
The study surveyed 2,000 adults in the UK to find that 64 per cent would need apply for a loan so they could cover the average £20,000 bill that is now associated with inheriting a home, even before the government’s inheritance tax is even considered.
The total cost, which will rise over time, includes expenses like house clearing and basic redecorating, along with standing charges for water and energy, insurance, and fees paid to solicitors.
UK citizens with fears of burdening their loved ones with a weighty bill, often consult experts in financial planning in Chester who can help theme reduce the amount of IHT paid on their estate.
