13:06 06 March 2013
You’ve just received the news that you’ve been left an inheritance by a relative. So what’s next? It is important that you understand that the government must get its share in the form of an inheritance tax before you get a dime.
An inheritance tax is the tax that due on an estate left when someone dies. The good news is that the threshold has increased to £325,000 for 2013. This means that no taxes are due until the value of the estate passes the threshold.
If the person who left you the inheritance was a good planner, then perhaps they have already planned for the payment of the inheritance tax and left instructions for the executor or whoever is responsible for the estate. If not, don’t worry. If you need legal help to assist you there’s no shortage of qualified professionals to guide you through the process.
There are some basic tips that can help you make sure that you pay no more than what you owe.
•Don’t forget that the threshold is £325,000 and no taxes are due until the estate value has surpassed this amount.
•If the inheritance was left by your spouse then the portion of the estate that was gifted to you is tax exempt.
•Small gifts of £250 are exempt. So if the benefactor left small gifts for the children or grandchildren, no inheritance tax will be due on those gifts.
•Please note that this process takes some times, so don’t expect a big check right away! It can take up to six months for everything to be computed and taxes deducted.
Being loved enough for someone to leave you an inheritance is a great thing, although a little sombre when you think about it. But knowing what to expect will save you a lot of headache and frustration.
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