This is a tax paid on the value of an estate owned (the total value of assets less liabilities) by a person when they die. Tax is payable at a rate of 40%, however most estates don’t have to pay Inheritance Tax because they’re valued at less than the nil rate band threshold (£325,000 in 2012-13). The nil rate band is the amount of assets you can leave to people free of inheritance tax.

When calculating the total value of the estate in order to review whether it is below the threshold, it is sometimes appropriate to include trusts or gifts made during someone’s lifetime, particularly in the seven years prior to death.

 

Increased threshold for married couples and civil partners

Since October 2007, married couples and registered civil partners can effectively increase the threshold on their estate when the second partner dies – to as much as £650,000 (in 2012-13). Their executors or personal representatives must transfer the first spouse or civil partner’s unused inheritance tax threshold or ‘nil rate band’ to the second spouse or civil partner when they die.

 

Seek advice

Many people will want to pass on their wealth and assets to their children or grandchildren to give them a helping hand as they look to make their way in life. Obviously, inheritance tax can serve to reduce the amount of money left, so it is important you seek the right advice and planning to make sure the amount of tax you pay is kept to a minimum.

The team at McHale & Co has the experience to advise you successfully on the right course of action to take with regards to inheritance tax planning and advice. We are approachable and friendly – the perfect combination to help set you on the right path.  

 

Get in touch

If you would like to know more about how our tailored services can best suit your needs, do not hesitate to get in touch. Although based in Greater Manchester, we can provide high-quality legal assistance to those who need it around the UK. Call us today on 0161 928 3848, or fill in the online contact form.

Testimonials

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Very happy with McHale & Co dealing with my Mother’s Deed of Probate and sale of her house, very helpful during a difficult time.

Ms. C Jones

Outstanding service. A breath of fresh air!

Ms. M

I would like to thank McHale & Co Solicitors for their excellent work.
The support Helen provided me with was above and beyond, it was her professionalism and her personal and effective responses which made such a difficult time for me a lot more bearable.
I would have no hesitation in using McHale & Co again and will certainly recommend them to family, friends and colleagues.

Mrs B

On behalf of us both, I’d like to thank you Phillippa, for the support and guidance you have given us throughout this process, your service has been second to none.

Again, thank you so much.

Mr & Mrs M

I would like to thank Roberto for his help and support in dealing dealing with a recent case for my son. He was professional, caring and showed great sensitivity. He went above the cause of duty in his handling of the case. He made a very traumatic and stressful situation easy to bear. I will be eternally grateful to him. He is a great asset to McHale & Co. Once again Thank you.

Ms C

Paul Fitton,

Many thanks for your help.  Very best of advice at all times.

Thank you to all staff.

Mr S and Mrs K

I am very pleased with the help that I received. Thank you. Certainly would recommend.

Mrs G

I have dealt with Paul Fitton both by phone and email regarding advice about getting compensation from a world wide organisation. From the start Paul was professional, knowledgeable, friendly and gave very sound advice too. Plus I won the case. Thank you Paul, very much appreciated

Ms G

Excellent and professional service with clear explanations and guidance throughout. We can thoroughly recommend the firm and in particular Philippa Wright, Head of Wills and Probate.

Mr & Mrs N

A quick, efficient way to ensure your wishes are recorded for end of life. Good advice given and explained in a clear concise manner. Thank you.

Ms E

Michaela was exceptional in both advice and the completion of the will. Michaela was kind, considerate, professional and her manner and personality was one that inspired confidence from the very first meeting, going way above what I expected.

Mrs M

Wonderful service provided by Helen Green – very thorough knowledge. I am extremely satisfied as I was helped through a difficult time when I was uncertain how to go forward.

Mrs C

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