What if I have a large estate?
If your estate or the joint estates of a husband and wife exceed £325,000 it would be wise to consider making a specialist tax planning Will that is designed to save your benefactors having to pay large sums of Inheritance Tax.
Inheritance tax is charged at 40% on assets held over and above £325,000. Used to maximum effect, tax planning Wills can save £114,000 in Inheritance Tax.
Your families estate can pay Inheritance Tax at a reduced rate of 36% on some assets if you leave 10% or more of the ‘net value’ to charity in your will. (The net value is the estate’s total value minus any debts.)
In addition to the standard threshold, there is a Residence Nil Rate Band (RNRB) that may apply if you pass on your main residence to direct descendants, such as children or grandchildren. The RNRB is designed to reduce the Inheritance Tax liability.