Good Lawyer Guide's response

Inheritance tax (IHT) is the tax paid to the Government on someone’s net estate when they die. An individual’s net estate is the sum total of everything owned at the date of death, less any debts owed.

The current IHT threshold is £325,000 which means no IHT is payable on an estate worth £325,000 or less. It also means that where a net estate amounts to more than the IHT threshold, IHT is payable only on the amount which exceeds £325,000 – although this figure could change in the future as governments come and go!

But exactly how much would you have to be paid? The current rate of tax is 40% - quite a chunk – but if you think you might have to pay it, there are ways of minimising how much you pay. For example, your will can be drafted in such a away to reduce the IHT you could pay so it’s worth getting legal advice on this issue.

Sometimes IHT has to be paid on substantial gifts made by the deceased before death so you or your accountant should keep records of big financial gifts you make.