When is Inheritance tax (IHT) due?

If your estate has an inheritance tax liability, after deducting any liabilities, exemptions and reliefs, the people you want to leave your assets to, i.e., your beneficiaries, are the people who ultimately will have to pay the IHT bill. The tax needs to be paid before your estate can be distributed. Inheritance tax is typically paid on the value of the assets a person leaves behind when they die, but it can also apply to some gifts and transfers that are made during someone’s lifetime. Your estate is defined as your property, savings, and other assets after any debts and reasonable funeral expenses have been deducted.

This is something that many families can overlook, but the earlier you start planning, the more options you may have.

For tax advice, consult a qualified accountant.