Inheritance tax can sometimes be a complicated and confusing cost to consider, but it doesn’t have to be. With the correct use of wills and expert assistance in estate planning from financial advisors, people can ensure they’re prepared and that more of their wealth is left behind to the beneficiaries they name.
Even if you’re able to get your head around the complexities of inheritance tax, legislation is updated periodically and having experienced advisors with up-to-date knowledge of incoming law changes can be most advantageous.
Inheritance tax is typically levied at 40% on a person’s estate after they died and is leaving their personal assets to others, providing that their estate is calculated as having a value that exceeds £325,000.
Precisely where inheritance tax is due to be paid is not always clear though, leading many people to delegate this trusted responsibility of dealing with their estate to an organisation or expert via the probate system.
As long as there is an appropriate will in place, this grant of probate gives a nominated individual or organisation the lawful right to deal with a person’s money, property and valued possessions following their death.
Estate planning should never be underestimated as it can cost those you leave behind dearly. Between the years 2018 and 2019, an extraordinary total of £5.38bn was paid out to the UK government in inheritance tax.