Wills and Tax

royP_2

When my wife and I die we have arranged our wills that our assets are distributed to our two sons and the grandchildren.
Would they have any tax to pay?

Pennywise

royP wrote: »

When my wife and I die we have arranged our wills that our assets are distributed to our two sons and the grandchildren.
Would they have any tax to pay?

Depends on the value of the estate, including any potentially exempt transfers made in the 7 years prior to death.

00ec25

did you write the wills yourself? Surprising that the basics of inheritance tax were not explained to you if a solicitor did them for you.

the estate pays the tax, if the estate is large enough to be above the various tax free thresholds.
The beneficiaries do not directly pay the tax, although obviously the tax reduces the amount they will get since the tax (if there is any) must be paid before they their hands on the money

there are a tiny number of specific circumstances where the beneficiaries would have to directly pay IHT themselves - but those are so specific it is not worth explaining at this stage

have you read the basic facts?>
https://www.gov.uk/inheritance-tax

Keep_pedalling

Assuming you own your own home, the current nil rate bands mean you don’t really have to worry about IHT unless your joint estates are likely to exceed £1M.

royP_2

Thanks for the info, I certainly will not be leaving £1M