Many of us are unaware that the inheritance tax rate is a massive 40%. Without careful planning nearly half of your estate after any allowances will be lost to taxation, By using NJP Estate Planning we can help ease this burden.
What are Inheritance Taxes and how do they affect me?
Inheritance tax is paid on a person’s estate when they die. At present this applies at the rate of 40% of all your assets including property, investments, savings and vehicles over the existing £325.000 per person threshold. If you’re married it doubles to £650,000 as long as the first person to die leaves their entire estate to their partner. Anything over this limit is subject to a 40% tax bill. With property increasingly in excess of £350,000 average prices it’s easy to see how the unprepared will have a massive tax bill and will NOT be leaving loved one’s their wealth but a massive headache and tax bill!
With many people owning second homes and thousands with buy to let properties and holiday homes, mitigating this burden is imperative in careful estate planning.
Inheritance tax is usually paid by the Executor of your Will from funds available from your estate.