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A simple guide to inheritance tax
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Posted On :
Oct-28-2011
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Article Word Count :
430
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Inheritance tax is sometimes referred to as death duty and is the sum payable to the government from a person’s estate depending on its size.
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Inheritance tax is sometimes referred to as death duty and is the sum payable to the government from a person’s estate depending on its size.
The estate is all of the deceased’s assets and includes their house, possessions, savings, investments and anything that may be owed to them by other parties.
Inheritance tax is typically paid by the executor or personal representative of the deceased’s estate before the beneficiaries of that estate get hold of what has been left to them.
Inheritance tax is also chargeable on property that is transferred in the seven years prior to death.
If a person makes a substantial gift and dies within seven years of making that gift, then inheritance tax will be due on that disposition.
These rules have led to many older people transferring substantial amounts of money and property to their children and grand children during their life in a bid to prevent inheritance tax being levied.
However, there are some exceptions that apply to when inheritance tax is chargeable.
Anything left to a spouse or civil partner is exempt from inheritance tax, as are donations made to qualifying charities.
Also, if the deceased owned a farm or woodland, some relief from inheritance tax may be permissible under the law.
Any cumulative dispositions below a £325,000 are tax exempt.
Peter Lashmar said: “It is very easy to say that tax avoidance is the right course of action in all circumstances and for all individuals.
“But when we are talking about something as emotive as the death, or the imminent death of a loved one, the normal rules of thrift don’t always apply.
“Some older people are delighted to live out their remaining years knowing that those they leave behind will benefit from their entire estate.
“However, in some families the subject of appropriation of assets before or even after death is taboo.” He added.
Lashmars Tax Accountants firmly believe we have an obligation to assist all our clients to pay as little tax as is legally permissible.
Lashmars Tax Accountants are not just bean counters, we will help you decide where to plant the beans!
Established in 1991 all our staff and consultants at Lashmars Tax Accountants in Lymington have extensive experience of helping owner-managed businesses and this means they will almost certainly have seen any situation before.
So for all your small business and personal tax planning & accountancy needs, call Lymington Accountants Lashmars today on 01590 688 838 or email info@lashmars.co.uk
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Article Source :
http://www.articleseen.com/Article_A simple guide to inheritance tax_97395.aspx
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Author Resource :
For more information about inheritance tax please visit www.lashmars.co.uk
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Keywords :
inheritance tax, inheritance tax planning, inheritance tax hampshire, inheritance tax accountant, inheritance tax accountants,
Category :
Finance
:
Taxes
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