Inheritance Tax is charged when a person’s estate reaches above a certain value. The rate can be 40% of the value of everything that person owns that is above the Nil-Rate Band threshold. Set by the government this rate is currently £325,000 which is frozen until 2021. When you die your estate is not liable to tax on any assets up to this amount. However, anything over this amount may be taxed at a rate of 40%. Making plans to mitigate inheritance tax could include; making a will, making lifetime gifts, setting up a trust, and leaving some money to charity. Seeking professional financial advice could help you to understand any inheritance tax that might be applied to you.
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