If you’re looking for a good lesson in Inheritance Tax, then take a look at Motley Fool’s Inheritance Tax guide which explains all about this particular form of taxation.
Many people think that the value of their estates would not push them over the inheritance tax threshold, but increasing house prices mean that more and more people are becoming liable to IHT.
If you’d rather that your kids ended up with more money than the taxman when you die, it’s worth considering whether you will be liable for IHT and how to go about reducing the amount the taxman will get. There are several methods for minimising for the inheritance tax bill, such as ensuring part of your estate passes to your spouse, Potentially Exempt Transfers (PETs) and gifts to charities (more explanation can be found on the Motley Fool article).
IHT can become a complex subject on larger estates, so it may be worth paying for some financial advice if you wish to limit the tax bill. A few thousand pounds spent now may benefit your loved ones by tens of thouands when you die.