Pen-Life Associates Ltd provides expert advice on inheritance tax and financial planning to secure your legacy.
The taxman isn't content to bleed you for every penny earned throughout your life. He also wants to harangue you and yours in death, through the inheritance tax levied upon your estate.
How much is inheritance tax?
It depends on how much you have:
||Inheritance tax not payable
|£325,000+ (reduced rate for charitable donations)
If your worldly assets are valued at more than £325,000, your beneficiaries are going to see 40% of it going straight into the taxman's coffers. However, since 6 April 2012, if you leave 10% of your estate to charity the inheritance tax due is reduced to 36%.
Don't get caught out. Even if you think it won't affect you, there is a chance that your house alone could be pushing you over the line. House prices have risen considerably in recent years and the inheritance tax threshold has failed to react to this change.
It's not all doom and gloom though. With the right financial planning, you could legally reduce the amount the taxman takes or avoid inheritance tax altogether, ensuring your family receives every penny they're entitled to.