Wills and estate planning information guide
Making a will can give you and your family peace of mind knowing that your wishes will be met after you die. Whether...
Inheritance Tax (IHT) may have to be paid on an estate if it's worth more than the tax-free threshold. However, there's no IHT to pay on estates left entirely to a spouse, civil partner or charity.
The value of your estate for the purpose of IHT includes:
IHT may have to be paid on the estate if it’s worth more than the tax-free threshold of £325,000. This means that the first £325,000 of your estate is tax-free – the 40% tax only applies to any assets over this threshold. If a house the deceased lived in before dying is left to their children or grandchildren, the threshold increases to £500,000.
If one partner dies and hasn’t used their tax-free allowance, this can be passed on to the surviving partner, giving them a higher threshold of up to £1,000,000 before IHT applies.
If you're the executor of someone's estate, one of your responsibilities, among other things, is to pay any IHT.
Before you report the value of an estate, it's a good idea to check if you need to send details of the estate so that you can complete the correct forms if necessary. Some estates don't need to be reported for Inheritance Tax (IHT).
Find out more about valuing an estate for Inheritance Tax on GOV.UK
It's a good idea to get a professional valuation on high-value items like houses or stock market investments if there could be IHT to pay, because you must give HMRC a detailed account along with valuations.
If the valuations aren't accurate, you may have to pay penalties.
To get an IHT form, you can either call the HMRC helpline for probate and Inheritance Tax enquiries on 0300 123 1072 or download one online on GOV.UK.
We offer support through our free advice line on 0800 678 1602. Lines are open 8am-7pm, 365 days a year. We also have specialist advisers at over 120 local Age UKs.
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