A significant challenge for many families on the death of a loved one is the challenge posed by inheritance tax.
Inheritance tax is paid when someone inherits money, property or other assets. It is normally paid very shortly after the death of the person they are inheriting the assets from. In general, anyone who inherits money, property or other assets (with a value over a certain amount) from you when you die may have to pay inheritance tax (excluding your husband, wife or registered civil partner).
However with inheritance tax thresholds significantly reduced, and the value of assets (such as houses) increasing, many families today get a very unwelcome shock when inheriting money. They get a large tax bill. This may result in assets having to be sold (such as the family home) simply to pay the tax bill – assets that the family might prefer to keep.
Inheritance tax planning can help you ensure that in the event of your death, the tax liability is paid. This is done using a specific type of life assurance policy that can be set up and used to pay the inheritance tax due on your estate.
