With good and early planning it is possible to mitigate Inheritance Tax, remove the burden placed on loved ones & prevent Generational Inheritance Tax from effecting your heirs.
For every pound in your estate that exceeds the Nil Rate Band Inheritance Tax threshold, HMRC will expect to collect 40p after you have passed on and before your loved ones receive their inheritance.
Furthermore, Inheritance Tax can be devastatingly burdensome for those you leave behind when you consider how HMRC expect it to be paid.
It also a common misconception that IHT is a ‘one off’ tax. Generational Inheritance Tax affects many families.
How will Inheritance Tax be paid
HMRC will expect that any tax due is paid before they will allow the Grant of Probate. In other words, the tax has to be paid before your beneficiaries receive their inheritance.
If liquid funds are not available and the Inheritance Liability is not paid within 6 months of the deceased’s death, interest will be charged.
HMRC will often allow the tax liability to be paid in instalments over a period of time (often 10 years). However, that agreement has to be maintained regardless of whether funds have been released from assets that need to be sold.
Let us help you to remove this burden from the shoulders of your heirs.
Generational Inheritance Tax
Assets that exceed the Inheritance Tax threshold will be subject to taxation on the death of the owner. Once the assets have been inherited, they will form part of the beneficiary’s estate. If the value of their own estate, or with the addition of their inheritance, exceeds the Inheritance Tax threshold, the inherited wealth will be subject to Inheritance Tax again along with their own assets once they have passed on.