Lashmars' simple guide to inheritance tax
Inheritance tax is sometimes referred to as death duty and is the sum payable to the government from a person's estate depending on its size.
The estate is all of the deceased's assets and includes their house, possessions, savings, investments and anything that may be owed to them by other parties.
Inheritance tax is typically paid by the executor or personal representative of the deceased's estate before the beneficiaries of that estate get hold of what has been left to them.
Inheritance tax is also chargeable on property that is transferred in the seven years prior to death.
If a person makes a substantial gift and dies within seven years of making that gift, then inheritance tax will be due on that disposition.
These rules have led to many older people transferring substantial amounts of money and property to their children and grand children during their life in a bid to prevent inheritance tax being levied. google_ad_channel = "7940249670, " + AB_cat_channel + AB_unit_channel; google_language = "en"; google_ad_region = 'test';