Inheritance Tax has been said to be a voluntary tax; plan and you can legitimately avoid paying it. Ford Simey’s experienced Private Client team can offer valuable advice about IHT planning that could save you thousands of pounds.
Inheritance Tax is usually paid on an estate when somebody dies. If the estate is valued at under the threshold (which for the period 2010/11 is £325,000) no tax is payable.
Anything over the threshold is taxed at 40%.
In most cases IHT is payable within six months of death. After that interest is charged but there are options to pay the tax by instalments if the estate includes property such as a house.
An important IHT-related issue that should also be considered is the payment of Care Home fees. Click on Planning for Care Home Fees below for some guidance on this emotive subject.