Inheritance Tax
If you want to bequeath your wealth to your children when you die, bear in mind that they may be subject to inheritance taxes. In the U.K. on a person's death, his or her property is, potentially, liable to inheritance tax. If inheritance tax is payable, the rate of tax is currently 40%. There are, however, certain exemptions and reliefs that reduce the amount of tax owed. For example, each person is entitled to an inheritance tax "nil rate band" amount. No inheritance tax is payable on property up to the value of the nil rate band prevailing at someone's death (the level of the nil rate band is currently £325,000 and generally increases each tax year). A person's nil rate band can be used up in their life by the making of lifetime gifts. It is possible for the first spouse or civil partner to die to transfer any unused part of his or her nil rate band to the survivor. If you want to mitigate against inheritance tax, putting your money in certain trusts can help reduce the burden. Inheritance tax is known as death duty or estate tax in some countries. In India, there is no inheritance tax, but stamp duty is payable on the transfer of property by inheritance.
