Assets can be passed between spouses free of inheritance tax
, which can make an enormous difference to the tax due.
Alarmingly, despite more than a third of over-55s being concerned about paying inheritance tax
on their estate, less than a fifth have actually taken action to reduce their potential tax bill.
is paid at 40% on a person's estate if it's worth more than PS325,000 when they die.
The level of receipts will also have been affected by the freeze in the inheritance tax
Nil Rate Band, which has been held at PS325,000 since April 2009.
From a base of 17,000 estates paying inheritance tax
upon the owner's death in 2010-11, the current freeze on the nil rate band could bring in an additional 5,000 estates per year who are liable to an inheritance tax
If any of your readers have paid inheritance tax
in Spain and were non-residents, we may be able to help them.
There are professionals who can offer expert guidance on inheritance tax
and help people understand their exposure and the actions that could be taken to mitigate it.
The instructions to the inheritance tax
return make it plain that not all not-for-profit organizations (for IRS purposes) are considered Class E beneficia-ries--for example, social clubs are not-for-profit organizations, yet they are not categorized as Class E beneficiaries (see the introduction to "Transfer Inheritance and Estate Tax," p.
He says there are a number of steps that you can take to reduce inheritance tax
liabilities; you can give assets away or utilise trusts.
Annual gifts of up to PS3,000 per individual are completely ignored for Inheritance Tax
A If your mother's total estate (including the value of the house) is likely to exceed the inheritance tax
threshold, then charging her a market rent may be an alternative to paying inheritance tax
at 40% on any amount above the threshold.
Chancellor George Osborne has announced that government is to scrap its election pledge to reform the inheritance tax
system and instead freeze the level at which it becomes payable at PS325,000 until at least 2019.