Inheritance tax

mrpaul84

Hi I need a quick reply to this question as I'm leaving in a few hours and have left things a bit late. I'm deploying to Afgahn tonight and trying to write the final bits of my Will but unsure of the tax that may be deducted from what ever I get. I'm told the Military pay roughly 3 times your wage and not sure if that will be taxed and also have private Insurance that will pay 150k but would like to know if that will be taxed. I have a mortgage which will be covered by that 150k but need to know what the tax will be so that I can say what happens to anything else I get.

Thank you

kingstreet

Unlikely to be a liability, mate.

The death in service cover is written under irrevocable trust and the benefit is paid by the Trustees to your named beneficiaries without it going near your estate for tax purposes. Make sure your Expression of Wish form or Nomination of Beneficiary is up to date. This tells the Trustees who you want to benefit.

The other cover will simply balance out the mortgage debt, so as long as your home and other assets are worth less than £325,000 you have no problems.

Just make sure your will leaves your things to the people you would want to get them.

All the best to you.

mrpaul84

Thank you that helps a lot.