Do you know how much Inheritance Tax you may have to pay?
June 30th, 2020 by Nightingale Law Ltd
What is an estate and who deals with my estate when I pass away?
A person that has died is often referred to as the deceased. If the deceased has left a Will, the beneficiaries will be named within the Will of the deceased. Beneficiaries are usually family members, friends and charities. An Executor will also be named in the Will, this is the person/s who the deceased has entrusted to ensure that their wishes are carried out as per the Will. Executors are legally and financially responsible for the administration of the estate of the deceased. The estate is the deceased persons belongings and comprises of all their money, investments, assets and possessions. So, it’s clear to see that the responsibilities of an executor are very important, it is a role that should not to be undertaken lightly.
Who will administer my estate if I don’t make a Will?
When there is no Will, the estate of the deceased will be distributed under the rules of intestacy. An Administrator will instead perform the duties an Executor would have performed if there had been a Will. If the rules of intestacy apply then the estate might not be distributed in the way the deceased would have wanted, instead the intestacy rules will establish who the beneficiaries of the estate are – the deceased has no influence or say in the matter. This highlights the importance of creating a Will.
Who should I nominate as Executor in my Will?
An Executor or Administrator, has the responsibility for ensuring that all debts and taxes due are paid before any money and assets are distributed from the estate to the beneficiaries. This is a legal requirement and failure to carry out these duties can have serious consequences as executors are personally liable for any mistakes. This is why being an executor can often be a stressful and time-consuming role. Appointing a professional adviser to handle these matters can take away the liability and stress of dealing with a loved one’s affairs at an already sensitive time. Have you considered who might act as your Executor when you make your Will? If you’ve already nominated an executors in your Will, do you think they will be able to perform their executor duties or do you feel they made need some professional support?
What is Inheritance Tax and who has to pay it?
Inheritance Tax is a tax on the deceased’s estate after they die. You may sometimes also hear the phrase ‘death duties’, though this term is now redundant as Inheritance Tax consolidated these multiple duties into a single tax in 1986. Inheritance Tax is a transfer tax on the net collective value of an estate as it passes from one person – the deceased – to another person(s). Similar to any other tax, it is collected by HMRC and there are certain requirements governing its payment and penalties for failure to comply.
How much Inheritance Tax do I have to pay?
This is one of the main questions people ask when it comes to Estate Administration. Here are just a few ways we can help…
- Find out how much your Inheritance Tax is likely to be
- Talk to us about the threshold under which no Inheritance Tax is payable
- Find out what arrangements you could make for your loved ones, including your pets
- Let us show you how we can help with time consuming and stressful executor responsibilities
- We can explain how we can support your already nominated executors so that they do not feel overwhelmed
We work directly with our clients and as intermediaries for award winning Estate Administration firms nationwide
So, if you’d like a no obligation chat either socially distanced face to face or by phone / video please contact us at firstname.lastname@example.org
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