And with university costs growing ever more expensive, you may be pleased to know that payments for the education of your child are also exempt from
Inheritance Tax.
This is the most common way to mitigate your
Inheritance Tax liability, however, each person has their own personal and financial circumstances which must be considered fully before a decision is made."
South Dakota has a special
inheritance tax class for farm and forest heirs; class 6, with lower marginal rates, applies to heirs not in class 1 or 2 who engaged in business or farming with the decedent for at least 10 out of 15 years prior to death.
However, while moves are being made to manage the impact of
inheritance tax, it must be noted that the latest changes are not immediate, and will be introduced in 2017 and staggered thereafter.
There is normally no
inheritance tax to pay if the value of someone's estate is below a PS325,000 threshold, or if everything above this goes to a spouse, civil partner or charity.
Anything you give to children, grandchildren or others has to be a genuine gift and you have to live at least seven years afterwards for it to escape
inheritance tax. This means you cannot have it back or use it once it has been given.
The personal representatives of the individual's estate must fill the relevant
inheritance tax forms, disclosing their interest in the UK residential property and pay any
inheritance tax if it is due.
Any money you leave to a charity, providing it is registered in the UK, will always be free from
inheritance tax. The same applies to leaving money to political parties if that's your thing.
Passing your main residence onto your child or grandchild If you are bequeathing your primary residence to your children or grandchildren (including adopted children), then there is more protection from
inheritance tax in the form of the 'main residence nil-rate band'.
Under current rules,
inheritance tax applies to the estate of a deceased person if it is worth more than the PS325,000 threshold, or PS650,000 for couples.
Obtaining bespoke advice tailored to your individual needs can ensure that you maximise available reliefs to minimise
Inheritance Tax.
The assets of "martyrs"--those killed in the line of duty--are not subject to any
inheritance tax.