Inheritance Tax Planning Advice: How To Save Your Family Inheritance
Inheritance tax (IHT) can seriously eat into the value of what you leave behind, particularly if you include property. If you do nothing and do not receive inheritance tax planning advice , your family may be surprised to receive an unexpected tax bill, which reduces the money we inherit. Understanding inheritance tax on family homes is vital when protecting assets for future generations. How Inheritance Tax Works on a Family Home In the UK, there is a 40% inheritance tax on estates over £325,000, including your family home. However, the government does offer a residence nil-rate band (RNRB), which enables homeowners to leave their property to children (generally) with further tax relief. This additional threshold is £175,000, so when combined with the standard threshold your family home could pass on tax-free up to £500,000. However, for married couples or civil partners, this can rise to £1 million, as the allowance of both partners can be pooled. Strategizing is vital though...
