Inheritance tax (IHT) is currently levied on most things you leave behind above £275,000. This includes: your investments and savings; your home and car; your furniture and personal effects; even the proceeds of your life insurance, unless it is written in trust. To find out exactly where you stand in relation to inheritance tax, and to find out how to make the most of your inheritance, it is best to speak to an independent financial adviser (IFA).
Click here to find an IFA offering unbiased inheritance tax advice
The rate of inheritance tax is 40% for everyone. This is equivalent to the highest current rate for income tax. The tax is deducted from the estate on death before it can be distributed to the beneficiaries.
When considering what you will leave behind, making gifts (which are not subject to inheritance tax if you live for more than seven years after making them) is one method of maximising the wealth you pass on. You can also make exempt gifts for example from your normal expenditure or as wedding gifts up to certain limits.
Speaking to an expert can also be useful if you have been left money and want advice on investing it.
Click here to download a FREE consultation voucher. Once you have downloaded a voucher please bring with you to your initial meeting your local IFA. You can find an IFA by searching our ‘Find an IFA’ database.
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