What's the inheritance tax rate? The inheritance tax is levied on a country level. For instance, few countries refer to a real estate tax and an inheritance tax as the same thing even though they are very different. Other terms you might hear instead of inheritance taxation are "passing obligation" in the UK.
Thornton & Baines provides you a brief knowledge about the inheritance tax and how you can manage that.
Image source: Google
Here is what you want to know about inheritance taxation:
- Inheritance tax has to be paid by families or individuals that have inherited something after the ancestor’s death.
- This taxation is also referred to as passing obligation and is paid on the things inherited, instead of the entire value of the property with the passing of time.
- Anything that’s precious, such as home jewelry, antiques, and other collectible items in addition to any investments and insurance coverages are subject to the tax.
- The fantastic thing is that just inheritances worth £325,000 or more are subjected to taxation.
- One of those ways is, in case the inheritor lived overseas for 3 years at a 20-year interval. As a lot of people decide to live overseas where the price of living is reduced, and the weather is much better, more individuals will probably be excused from paying this tax later on.
- There's not any tax payable in case a property is given 7 years before death. Maybe in case you know that your grandparents or parents are getting older and weaker, or have health conditions, plus they do not want their house to be sold to repay inheritance tax, then they may think about handing down it sooner they planned to.
- There are other strategies to avoid paying a huge amount of inheritance taxation. A seasoned inheritance tax attorney or financial adviser can advise you according to your conditions.
Now you know somewhat more about what happens following the passing of a loved person, maybe now's the time to think more about inheritance taxation.