Estate Tax
Estate tax, also known as inheritance tax, is the tax that may be payable on your estate when you pass away.
Currently, your estate must be worth more than £325,000 to be liable for inheritance tax, and anything over this threshold is taxed at 40% (until 2014-15).
What counts towards an estate?
Assets that count towards the value of your estate that may be liable to estate tax include property and gifts made within the last seven years, as well as any monetary assets and assets some trusts held assets.
Estate tax is usually taken directly out of your estate before anything is passed on to any beneficiaries. If tax is due on any gifts that you have made this will usually be payable by the beneficiaries themselves. Find out more about paying inheritance tax or estate tax.
There may be ways of minimising or avoiding estate tax by taking steps in careful financial planning and gifting in your later years.
A inheritance tax advisor may be able to help you plan ahead for estate tax and ensure that beneficiaries can get the most out of your estate when you pass away. For impartial estate or inheritance tax planning advice speak to an independent advisor at one of our partner firms for a free initial consultation.
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