This is a tax paid on the value of an estate owned (the total value of assets less liabilities) by a person when they die. Tax is payable at a rate of 40%, however most estates don’t have to pay Inheritance Tax because they’re valued at less than the nil rate band threshold (£325,000 in 2012-13). The nil rate band is the amount of assets you can leave to people free of inheritance tax.

When calculating the total value of the estate in order to review whether it is below the threshold, it is sometimes appropriate to include trusts or gifts made during someone’s lifetime, particularly in the seven years prior to death.

 

Increased threshold for married couples and civil partners

Since October 2007, married couples and registered civil partners can effectively increase the threshold on their estate when the second partner dies – to as much as £650,000 (in 2012-13). Their executors or personal representatives must transfer the first spouse or civil partner’s unused inheritance tax threshold or ‘nil rate band’ to the second spouse or civil partner when they die.

 

Seek advice

Many people will want to pass on their wealth and assets to their children or grandchildren to give them a helping hand as they look to make their way in life. Obviously, inheritance tax can serve to reduce the amount of money left, so it is important you seek the right advice and planning to make sure the amount of tax you pay is kept to a minimum.

The team at Waldron & Schofield has the experience to advise you successfully on the right course of action to take with regards to inheritance tax planning and advice. We are approachable and friendly – the perfect combination to help set you on the right path.  

 

Get in touch

If you would like to know more about how our tailored services can best suit your needs, do not hesitate to get in touch. Although based in Greater Manchester, we can provide high-quality legal assistance to those who need it around the UK. Call us today on 01706 624 029, or fill in the online contact form.

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Michaela went out of her way to make time to see me, gave very good advice and answered any questions I had. Always returned my phone calls and emails promptly. Thank you

Mrs K

Wonderful service provided by Helen Green – very thorough knowledge. I am extremely satisfied as I was helped through a difficult time when I was uncertain how to go forward.

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Hassle free service, just give them the facts they require – let them get on with it – Simples

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Malcolm, I really appreciate what you have done and can’t thank you enough with how you have dealt with this! We’ll fill in the attached customer satisfaction form and reflect how impressed and pleased we are.

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Thanks for the work of your staff led by Maria. I would like to highlight the contribution of Nadya & Leona in these transactions. While Maria is often the one in the sunshine so to speak, it is through the background work performed by these two that allows this to happen.

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I have been completely satisfied with help given by Helen and feel that my affairs are now in safe hands.

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Everything was great Michaela. Thanks!

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I would like to praise Adam Cohen with the way he has looked after both me and my wife. He has been very thorough and helpful with us.

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A very professional and friendly service from Helen using clear plain English that is easily understood.

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Excellent, friendly service from Helen Green. Very happy with the outcome.

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