The following Wills & Probate guidance note provides comprehensive and up to date legal information covering:
A Will is not a tax planning tool and can do no more than exploit the nil rate band and any available exemptions or reliefs. Few estates are subject to IHT although for many testators the question of how their estate will be affected by IHT is a fundamental and continuing worry. IHT is charged not only on an estate on death but also on some lifetime transfers and the practitioner does not have to be an expert in IHT but it is essential that they understand the basic theory both to explain to the client and to recognise when the questions being asked are of such complexity that the client should be referred to a tax expert.
IHT is charged on the value transferred by a chargeable transfer by the testator either during their lifetime at the lifetime rate of 0% up to £325,000 and 20% thereafter or on their death at the death rate of 0% up to £325,000 and 40% thereafter. A chargeable transfer is one that is not exempt or potentially exempt (in the case of lifetime transfers). In respect of the latter, if the testator dies within seven years of the gift, the transfer becomes chargeable. Conversely, if the testator survives for seven years following the transfer, the transfer will be exempt. For further information see the
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