Death
As Benjamin Franklin said: "nothing in life is certain except death and taxes".
If you do nothing at all about planning for your future demise, not only will your assets go where the law determines but they may also become easy prey to the taxman, in the form of inheritance tax at the death rate of 40%.
Inheritance tax (IHT) is payable on death on the amount of an individual's estate (see above) over the nil rate band, currently £285,000, at the rate of 40%. There are a number of reliefs and exemptions.
If you have made any gifts of assets (including money) in the past you may not have the whole of the inheritance tax nil rate band available on your death. This is because inheritance tax can also arise on certain gifts or transfers of assets made during your lifetime.
House price inflation in recent years has meant that a great many people now have estates valued considerably in excess of the current inheritance tax nil rate band.
Use our calculator to work out the approximate value of your estate and the potential inheritance tax liability if you were to die today. Remember to include insurance proceeds and death in service benefits if they will be paid to your estate. You should also include the value of any gifts made in the last 7 years under 'other assets' as they will form part of your estate. (In reality any inheritance tax on these might be reduced if they occurred over 3 years ago but for an approximate liability they should be included in full).
