Expert offers inheritance tax advice

People interested in wills and probate matters have been given advice on inheritance tax.

John Fitzsimons, deputy editor of Lovemoney.com, wrote for the website that HM Revenue & Customs is currently clamping down on inheritance tax, but that people can take steps so that they are not caught out.

Mr Fitzsimons explained that individuals who make a will leaving an estate that is worth more than £325,000 will be charged inheritance tax, as will couples with estates worth £650,000 or more.

He said that people should take reasonable care that their property is valued correctly.

In addition, people may want to think about making a will that leaves ten per cent of their estate to charitable organisations, so that their rate of inheritance tax is reduced.

He said: "In reality, this won’t leave your loved ones any better off, as the money will simply be going to charitable causes rather than the taxman. But if you trust that charity to use your cash a little more wisely than the Treasury, then it might be worth considering."

In addition, people may want to write a life insurance policy into trust so that a payout will not be taxed along with an estate.

People should also be aware that the probate process involves completing an inheritance tax form and that a grant of probate will be given once at least some of this has been paid.

Published by Hannah Carr