In the event of your death, your beneficiaries could pay inheritance tax at 40% on the value of your estate above £325,000.
For example, if your estate, including the value of your home is worth £500,000, that could mean a tax bill of £70,000.
However, things are set to change. A new £1million allowance is soon to be introduced for couples who want to pass on property wealth.
An additional allowance for family homes will be gradually introduced on top of the existing tax-free band from 2017, taking the total to £1million by 2020, although the wealthiest estates will not qualify for the additional relief, which will be tapered away for estates values at between £2million and £2.35million.
Please click here to see our Intestacy Rules Flowchart or, in other words, what happens to your estate if you die without a valid Will.
Our tax specialists can help you mitigate your Inheritance Tax liabilities with careful advance planning.
For more information on Clemence Hoar Cummings Chartered Accountants in Essex, please contact us.