Inheritance Tax: Rates and Allowances

Inheritance Tax:

Rates and Allowances

by Dr Edgar Paltzer

Inheritance Tax: Rates and Allowances Inheritance tax is a tax paid on the estate of the deceased which is payable as a percentage of the total value of all cash, property and other assets owned by the deceased. This tax is only payable on assets valued over the current rate of inheritance tax allowance.

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Inheritance Tax Allowance The estate of anyone who passes away with assets lower than the current rate of inheritance tax allowance will not be liable to pay any inheritance tax. Depending on the jurisdiction no or reduced inheritance tax is owed when close family members inherit.

Exceptions There are several exceptions to inheritance tax liability depending on the jurisdiction, in particular when the estate left to a current spouse or civil partner or to descendants, or if the balance is left to a charitable organisation, no tax is payable.

Gifting to a Charitable Organisation Choosing to gift some of an estate to a charitable organisation can reduce the amount of inheritance tax that becomes liable.

Choosing to gift some of an estate to a charitable organisation can reduce the amount of inheritance tax that becomes liable.

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