Inheritance tax is a form of tax which is paid by families or individuals who inherit an item from a deceased individual. The heirs pay it following the death of a person who passed on his estate or property to them.
Many people believe that inheritance tax and estate tax are one and the same. But this isn't true, since the inheritance tax isn't imposed on the entire estate, it's just payable on property transferred to the next generation as an inheritance. You may also hire an IHT specialist in Threshold, UK from various online sites.
The tax is applicable to everything that is worth something, and which can be considered an inheritance. It can be jewelry, property objects, collectibles and even tangible assets like the life insurance policy and investments.
The tax on inheritance has always been in the spotlight and many oppose it. Many believe that it's unfair to place this burden on those whose family members died who already have suffered losses.
In the majority of cases the tax rate is excessive, often being about forty-five percent of the total asset value. This is why it is essential to establish a plan for inheritance tax to lessen the tax burden.
It could be a good idea to invest your money in investments that have lower tax rates. Make use of the annual allowances that are granted to you by gifts. Regular gifts that are made out of your estate are exempt from taxes. This means that you can aid your family members without the hassle and burden of inheritance taxes.