When planning your will, make sure you take tax into account.
Inheritance Tax is a tax of 40 per cent on estates worth over £325,000 (including savings, possessions, pension funds and property). The first £325,000 is tax free.
In some cases inheritance tax isn’t applied, such as:
- If you leave your full estate to your spouse or partner.
- All charitable donations.
- Gifts to beneficiaries before you die - please note that tax can still apply in this circumstance, so seek advice.
- Setting up a trust can reduce the amount of tax. Different trusts can affect the amount of tax in different ways.