IHT is the common tax levied on someone’s estate after they have died, which can include their money, possessions and property. No IHT is paid if the value of your estate is below the £325,000 threshold or if the person leaves everything above the £325,000 threshold to their spouse, civil partner or a charity.
Generally, any excess over the nil-rate band (currently £325,000) is chargeable to inheritance tax at 40 percent, less any lifetime inheritance tax paid on transfers.
Faye Smith, financial planner from Reeves Independent spoke exclusively with Express.co.uk about the common mistakes people make when IHT planning and how people can avoid them.
1. Failing to plan
She said: “It seems obvious, but this is where it all begins. If you don’t plan for the fallout of IHT in advance you could be throwing away thousands of pounds that could have otherwise benefited your beneficiaries. It’s never too early to start planning.
“Not having any estate plan at all is the most common mistake. If you make no provision, it’s possible that when you die your spouse will be faced…
