| In the UK, inheritance tax planning is something that it is | | | | passed on to a beneficiary are not liable for taxation. |
| essential to get professional help with. In legal terms a | | | | A clear example of this is for a spouse or a civil |
| person's estate is everything that they own, their | | | | partner. If your estate is over the UK threshold then |
| money and their property. When a person dies their | | | | usually it is the case that anything you may leave to |
| estate is usually willed to their next of kin, or to other | | | | them is not taxable. This applies to civil partners or |
| named parties. If a person's estate is valued at more | | | | spouses that have a home in the UK permanently. |
| than £325,000 the UK government is entitled to | | | | Another example of this is with small gifts. The UK |
| take a proportion of the deceased estate in tax. | | | | government defines "small gifts" in this case as |
| If the estate is worth more than that sum, or rather, it is | | | | anything less than £250. You can give as many |
| over the the threshold specified by the government | | | | individuals you like a small gift and there is no tax |
| then someone is required to organise the payment | | | | consequence for your estate. Carrying on with the |
| inheritance tax on it. Most commonly it is the executor | | | | giving theme any gifts you make to a charity, so long |
| of the will who is responsible, or a personal | | | | as it is a UK registered charity, will be exempt- this |
| representative for the deceased that deals with the | | | | includes ones made in your lifetime, and not just in your |
| payment. If any assets from the deceased estate are | | | | will. |
| in a trust then the trustees who benefit are likely to be | | | | Larger gifts can also be exempt, for example you |
| required to pay inheritance tax too. Occasionally even | | | | may give away up to £3,000 a year. This |
| people who have been given gifts by the deceased | | | | amount doesn't have to be in one lump sum but can |
| can have to pay inheritance tax, but this is rare. | | | | be split up into several gift amounts. Whatever your |
| There are cases where someone's estate may be | | | | concerns over inheritance tax planning it is always best |
| over the defined threshold, but any assets that are | | | | to get the advice and support of a trusted UK solicitor. |