Put simply, inheritance tax is the tax payable on your estate when you die if the value of your estate exceeds a certain amount. Your estate is the net value of everything you own - all your assets minus any debts. Speak to us to make sure that you are taking advantage of the present rules to minimise your potential liability.
How might you calculate it?
A valuation of the entire estate, including insurance and pension benefits, could need to be undertaken to enable a calculation of the cost of potential IHT.
What else might I need to know?
Planning to help ease the burden of inheritance tax and the impact of funding nursing home fees may be as simple as ensuring wills are correctly drafted through to making complicated trust and insurance arrangements. The current taxation climate offers many ways of mitigating potential inheritance tax problems, but in some cases may lead to other taxation burdens such as capital gains tax.
The choices may appear complex and we would always recommend that you seek expert independent financial advice.