Inheritance tax?

royP_2

What is the maximum amount that can be given in a will without paying inheritance tax?

RAS

You can leave billions in a will.

If you want information about the amount at which Inheritance Tax becomes payable, you need to provide some information.

Single, married or civil partnership, divorced?
Current or previous home owner?

JGB1955

AIUI the maximum is £1M or as little as £325K, depending on circumstances.

Keep_pedalling

JGB1955 said:

AIUI the maximum is £1M or as little as £325K, depending on circumstances.

It can be a lot higher than that. If you happen to own a working farm that would qualify for agricultural relief and if you are leaving the bulk of your estate to a spouse or charity their is no upper limit.

royP_2

Reason I ask is that I am an executor for my brothers estate and have just received a copy of the will where it states the following:

I give the maximum amount that can be given by this Will without inheritance tax becoming payable in respect of the gift to be divided equally between my sister XYZ and my sister ABC.
What does that mean?

Keep_pedalling

royP_2 said:

Reason I ask is that I am an executor for my brothers estate and have just received a copy of the will where it states the following:

I give the maximum amount that can be given by this Will without inheritance tax becoming payable in respect of the gift to be divided equally between my sister XYZ and my sister ABC.
What does that mean?

Assuming he was single and not a widower it means his sisters share the first £325k of his estate tax free. If the estate is worth more than that this then the remainder is subject to IHT at 40%.

Yvfm

I have a similar statement in my will however it also states anything above that amount is to go to charity in which case there will be no inheritance to pay.

royP_2

Keep_pedalling Thanks for your reply.

Yvfm That is exactly what my brothers will states as well.

Yvfm

The reason I have it in my Will is to make the Will quick and easy to administer, donate to good causes which I support and not have Executor worrying over how IHT is going to be paid. 

Alphatauri

I was I was a beneficiary in these circumstances. In my case my relative had no children,  their spouse had died with probate of .c£10k.  The will gave gifts totalling £50k.  So we had 2 x £325k less £60k = £590 k split between the residual beneficiaries, the rest went to charity.