Inheritance Tax will have to be paid if the value of your estate exceeds the threshold set by the Government currently this is:
- Single person (Nil Rate Band) = £325,000
- Married couples or civil partnerships (Joint Nil Rate Band) = £650,000
Inheritance Tax is paid at the rate of 40% on the amount that exceeds this threshold. So, out of every £1 over the threshold your beneficiaries will only keep 60p, 40p will go to Her Majesties Revenue and Customs.
Gifts to charities are generally exempt from Inheritance Tax. If you leave a charitable gift it will be deducted from your estate before the Inheritance Tax liability is calculated.
If you estimate your estate to be liable to IHT then have you made any gifts? As these could be liable to tax upon your death.