Inheritance tax planning
Inheritance tax is usually classified as a "voluntary tax" payable to the government of the day out of our estate on death.
These pages aim to give you a brief background to Inheritance Tax, how it
is calculated and some of the options on how to reduce it. The information
is sourced from the Inland Revenue. It is intended as a guide as to action
or decisions you might wish to take in respect of inheritance tax estate
planning. We can take no responsibility for any such decisions you might
take after reading this site without seeking specific advice from us.
As a starting point we would always recommend you commence planning for
inheritance tax by working with us to help calculate the current inheritance
tax liability on your estate. Once your current liability has been established
we can recommend to you the most appropriate strategy to meet your personal
circumstances, which may include referring you to a specialist solicitor
who can also provide you with invaluable and knowledgeable legal guidance.
Several legal means can be employed to either mitigate or remove this tax
burden from our estate upon death, to ensure your nominated beneficiaries
can have easy access to the full inheritance you have provided.
We can take no responsibility for any decisions you might take after reading
this site without seeking specific advice from us.
Who pays out the Inheritance Tax?
The 'personal representative' (the person nominated to handle the affairs
of the deceased person) arranges to pay any Inheritance Tax that is due.
You usually nominate the personal representative in your will (you can nominate
more than one), in which case they are known as the 'executor'. If you die
without leaving a will a court can nominate the personal representative,
in which case they are known as the 'administrator'.
Deadline for paying Inheritance Tax
In most cases, Inheritance Tax must be paid within six months from the
end of the month in which the death occurs, otherwise interest is charged
on the amount owing.
Tax on some assets, including land and buildings, can be deferred and paid
in installments over 10 years.
