Inheritance Tax Rates FAQs

The most common inheritance tax rates FAQs we receive.

1. What is inheritance tax?
2. Are there any exemptions?
3. What is considered my "estate"?
4. Who pays the inheritance tax?
5. By when does it have to be paid?
6. Does having a will help my inheritance tax planning?

1. What is inheritance tax?
Inheritance tax is the tax paid against the value of your estate after pass on.  The level of inheritance tax can vary greatly from country to country.

2. Are there any exemptions?
Under UK law, certain gifts will be considered tax free for inheritance tax purposes.  These include gifts to your wife, husband or civil partner and gifts to charity, political parties and national institutions.  Exemption rights will also vary greatly from country to country, for details on the exemptions in your country of residence please contact one of our advisors.

3. What is considered my "estate"?
Your estate is considered to be everything that you own, minus any outstanding debts or money owed.  This includes your property, savings, investments and also possesions.

4. Who pays the inheritance tax?
This can also change from country to country, but is is usually someone formally nominated to handle the affairs of the deceased.

5. By when does it have to be paid?
Inheritance tax must be paid within six months of the estate owner's death.

6. Does having a will help my inheritance tax planning?
Yes, having a will drawn up will establish what assets are to go to which person and this can be arranged in such a way as to minimise inheritance tax. Knowing exactly who will get what and where will help to simplify the process of assessing how to ensure that you pay as little as possible. If you do not have a will or clearly specify how your assets are to be handled you are considered to have died "intestate", meaning you can be left open to a legal minefield and unnecessarily high levels of inheritance tax.

The above is only a brief outline and the answers to these quesitons will vary depending upon which country you are resident in.  For full details and answers relevant to the country that you are resident in, please contact one of our advisors.