A Guide to Inheritance Tax - What You Need To Know

A GUIDE TO INHERITANCE TAX - This could be a useful read.  

https://www.comparethemarket.com/life-insurance/content/a-guide-to-inheritance-tax/

This guide covers:

• What inheritance tax is, when it has to be paid and how an estate is valued
• Inheritance tax thresholds and rates for 2021-22
• Ways to reduce the cost of inheritance tax and why we need to pay for it
• How inheritance tax works for married couples
• Tenants in common and inheritance tax

Here’s just some of the advice that readers are helped with:

• Don’t assume inheritance tax is essential – if the value of your estate is below 325k, it doesn’t need to be paid.
• Inheritance tax is often unavoidable, but that doesn’t mean there aren’t plenty of ways to reduce it. For example, you can leave 10% of your estate to a charity, reducing the tax from 40% to 36%.
• If an estate is mainly made up of property, you don’t need to pay all your inheritance tax in one go. You can pay it off over 10 years – since April 2020, the interest rate has been set at 2.6%.

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