Everything you need to know about inheritanceFeature of the week
Want to know more about inheritances? Then read on to find out more and to discover some useful resources where you can deepen your knowledge still further.
The property, money and possessions of a deceased person constitute their estate, if they’ve left a will, it should specify how they want their estate passed on. If a person dies without making a will or ‘intestate’, then the “rules of intestacy” apply. These rules give very specific criteria about who can inherit an estate, and this usually includes married or civil partners and some other close relatives. Charity AgeUK has a lot of useful information on their website regarding dealing with an estate, including what to do if there is or is not a will, so take a look to learn more
Selling inherited property isn’t always easy, as there are formalities that you’ll need to go through first. However, if you have been awarded probate and are looking to sell a property, then consider a company that specialises in probate inherited property. They can help ensure a quick and smooth sale of the property, easing what can be a difficult and time-consuming process for you.
Worried about inheritance tax? Inheritance Tax is paid on the estate of someone who’s died; this includes their property, money and possessions. From April 2017, the inheritance tax threshold changed, now if the value of the estate is less than £325,000, inheritance tax won’t usually have to be paid. If the estate has been left to a spouse or civil partner, a charity or a community amateur sports club, it is not usually the case that this tax is levied. Moreover, if the property is left to children (including adopted, foster or stepchildren) or grandchildren, the inheritance threshold increases to £425,000. Also, the inheritance tax threshold can double, if the estate is left to a spouse or civil partner.
The standard rate of inheritance tax is 40%, but it is only charged on the part of the estate that exceeds the threshold. There are some additional circumstances in which relief or exemptions may be made, and it’s best to get professional advice if you think you may be eligible for these exemptions. If there is a will, the tax is usually paid by the executor of the estate, if there isn’t a will, then it is paid by the administrator of the estate. The Money Advice Service, has some helpful information about inheritance tax if you want to find out more.
Take your time
If you have inherited money from a loved one, then take your time making a decision about what you want to do with it and don’t be rushed. Consider getting professional financial planning advice and make paying off any debts you have a priority.
So there you have a brief overview of some key issues relating to inheritances, including the significance of someone being “intestate”, what tax may be due on an estate, and how you could proceed if you wish to sell a probate property.
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