The Inheritance Tax threshold is £325,000. If the value of your loved one’s estate is greater than this when they die, you must pay 40% of the total value of the estate to the Government, or 36% if 10% or more of the estate is left as a charitable gift. The executor of the will is responsible for making the Inheritance Tax payment, which must be made within six months of the death of your loved one in order to avoid paying interest.
Inheritance Tax Planning (also known as IHT Planning) is an ongoing process designed to minimise the amount of Inheritance Tax you have to pay when your loved one dies. The lower the value of your loved one’s estate, the less Inheritance Tax you will be required to pay. Gifts and trusts are great for reducing the amount of Inheritance Tax you will have to pay to the Government.
Creating lifetime gifts and putting money in trusts helps to reduce the value of your (or your loved one’s) estate. Everyone has an annual exemption of £3,000, which means you can give away this amount every year without paying tax on it. Larger amounts can be given away to your children or small gifts can be given to other individuals.
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The Solicitors Regulation Authority (SRA) is the regulatory body for solicitors in England and Wales.
Solicitors for the Elderly is an independent organisation of legal professionals who specialise in providing legal advice to elderly and vulnerable clients.
The Notaries Society represents the 900 or so Notaries Public currently practising in England and Wales.