At Wellingborough Wills we can help you understand what is required when it comes to Inheritance Tax and how you can reduce your potential tax bill. Inheritance Tax is a charge that is paid to HMRC on the value of your estate when you die.

There is an amount that you are allowed to leave before the tax is assessed. This is known as the ‘Nil Rate Band’ and it is currently set at £325,000.  There is an extra allowance if you own your own home and you are leaving it to a direct descendant.  In 2019/2020 this is  £150,000 per person.

This tax is usually paid by the executor or personal representative and is taken from the funds of the deceased's estate. It must be paid within six months of your death before the grant of probate can be issued. The tax is on the total value of the estate you leave and includes property, savings, shares, ISA’s, pensions and insurance lump sum payouts.

There are methods by which the potential tax bill can be reduced by arranging to have certain assets disregarded in the valuation process, this is a complex procedure and professional advice is essential.

Wellingborough Wills are experienced in dealing with Inheritance Tax and can help reduce the tax bill on what you leave behind.