how does Inheritance tax works
Inheritance tax (IHT) is a tax on the estate (the property, money, and possessions) of someone who has died. It is usually paid out of the estate before any assets are distributed to the beneficiaries. The standard IHT rate is 40%, but it only applies to the part of the estate that’s above the threshold of £325,000. Certain reliefs and exemptions can reduce the amount of tax payable. For instance, if you leave your home to your children or grandchildren, the threshold can increase to £500,000.
If you want to navigate the complexities of IHT and ensure your estate is managed efficiently, consider consulting an inheritance tax specialist They can provide expert advice tailored to your specific circumstances, helping you minimize the tax burden on your loved ones.