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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Excellent, professional and caring. Michaela and her colleagues made the whole process very easy.

Ms A

I have been using McHale and Co for both the sake of my property and the purchase of my new home. Joy handled my sale and was extremely professional, helpful and persevered when dealing with my buyers solicitors who were less than professional to deal with.
Phillippa was equally professional and extremely knowledgeable on purchasing new build properties due to her years of experience in this specialist area. She was supportive and gave me confidence that I was getting a first class service. Would use them again and recommend to my friends and family.

Ms. S

…in the midst of the most stressful situations, I have never felt the need to ‘nudge’ or urge action, I have always been confident in the reliability and consistency in the service received, especially from Liz Connolly.

Ms B

Extremely satisfied, I have already recommended. I first used the Will drafting service – Helen Green – then probate… clearly happy!

Ms W

Excellent Service provided by Michaela. Detailed, professional and approachable.

Ms J

Michaela is professional and confident in her field and at the same time I felt completely relaxed in her presence, a great asset to McHale & Co.

Mrs P

Always, without fail, returned email/telephone calls promptly. Thank you.

Mr D

Professional and efficient service with a personal touch.

Mr Y

Grace has been very helpful dealing our whole family, arranging wills and lasting powers of attorney. Excellent service.

Mrs N

I am very glad that I found your office and especially Helen Green. I enjoy dealing with people who know what they are doing.

Mr S

Grace Kennedy was friendly, professional and knowledgeable. Updating our wills was a very smooth and efficient process.

Mr W

The service and communication provided by Michaela throughout the process of dealing with my mum’s estate has been exemplary.

Mr E

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