If your estate – made up of your home, car, possessions, savings and investments – totals more than £325,000, 40% of the value over this threshold will be owed in Inheritance Tax.
So a lot of what you believe you’re leaving to your family may go to someone entirely different, and it doesn’t end there.
Until your loved ones have paid the tax bill, they won’t receive any of your estate at all. The taxman will hang on to it until the debt is settled.
As your estate increases, so does your tax liability.
| IHT Liability
IHT RATES, ALLOWANCES AND THRESHOLDS ARE SUBJECT TO CHANGE IN THE FUTURE AND IHT LIABILITIES ARE SUBJECT TO INDIVIDUAL CIRCUMSTANCES
*this is based on a single individual non-widowed