Inheritance tax thresholds refer to the rates at which you might be taxed on your income and assets that you pass down through inheritance. It's important to understand how inheritance taxation works in the event you come into an inheritance in your lifetime, especially if it is a close relative who is still living.
When discussing inheritance tax thresholds with your accountant or another financial advisor, be sure to mention that you're interested in learning more about these topics. You can get expert advice on inheritance tax planning and trusts in London, UK online.
As your wealth and estate grow, being knowledgeable about the rules that apply to your situation can be crucial – especially if receiving an inheritance is in your future plans. When you die, your assets – including property, stocks and debts – will be automatically inherited by your spouse, civil partner or children listed as the sole beneficiaries on your death certificate.
However, if you want to leave assets to a specific charity, you need to do so in writing before your death. Understanding inheritance tax thresholds and planning for estate taxes are important for anyone who will inherit property or money. The estate tax is a tax that applies to the estates of individuals who have died.
The thresholds at which the estate tax will be paid vary depending on the person's estate value, as well as their marital status and the number of children they have. The estate tax is a federal tax that is levied on the gross value of an individual's estate, which includes both assets and liabilities. The maximum estate tax rate currently stands at 40%.