| Inheritance tax is around 40-50 per cent, and just adds | | | | exempt from paying tax on inheritances. |
| another terrible thing to think about at a very hard time. | | | | 7. One of the ways is if the inheritor lived abroad for 3 |
| As well as having to cope with the loss of a loved | | | | years in a 20 year period. Perhaps because many |
| one, perhaps a parent or grandparent, there are legal | | | | people are choosing to live abroad where the cost of |
| implications of somebody dying too. | | | | living is lower, and the weather is better, more people |
| Here's what you need to know about inheritance tax | | | | will be exempt from paying this tax in the future. |
| 1. Inheritance tax must be paid by individuals or families | | | | 8. If the assets are overseas then inheritance tax is |
| who have inherited something following a death. | | | | not payable. With people having property abroad or |
| 2. This tax is also known as death duty, and is only | | | | living in different countries, or having foreign bank |
| paid on the items inherited, rather than the whole value | | | | accounts, this is not as unlikely as it may first seem. |
| of the estate at the time of death. | | | | 9. There is no tax payable if a property is handed |
| 3. Inheritance and estate tax are not the same. Estate | | | | down 7 years before death. Perhaps if you know that |
| tax is concerned with the value of the estate as a | | | | your parents or grandparents are getting older and |
| whole, and inheritance tax is only payable on items that | | | | frailer, or have medical conditions, and they don't want |
| have been inherited to an individual or a family. | | | | their home to be sold to pay off inheritance tax, then |
| 4. Anything that is valuable, such as property jewellery, | | | | they might consider handing it down sooner they |
| antiques and other collectible items as well as any | | | | intended to. |
| investments and insurance policies are subject to this | | | | 10. There are also other ways to avoid having to pay |
| tax | | | | the vast amounts of inheritance tax, and to ensure |
| 5. The good news is that only inheritances worth | | | | that items can stay in the family at this very difficult |
| £325 000 or more are subject to tax. However, | | | | time. An experienced inheritance tax solicitor or |
| with houses worth a lot more than when they were | | | | financial advisor will be able to advise you based on |
| bought, especially if they were bought by grandparents | | | | your own circumstances. |
| a long time ago for example, or houses in major cities | | | | Now you know a bit more about what happens after |
| such as London, it is very easy to reach this threshold. | | | | the death of a loved one, perhaps now is the time for |
| 6. There are ways, however, of minimising the amount | | | | you to think more about inheritance tax. |
| of tax payable, or and it's even possible to be legally | | | | |