How to Calculate inheritance Tax
Every individual has a personal allowance for inheritance tax currently set at £285,000.
Over this value your estate will be taxed at 40%. It is important to note that here is no tax to pay between spouses on the first death. However most couples make the mistake of only having Mirror (joint) Wills that pass everything to the surviving spouse.
This has the effect of giving away the first spouses tax free allowance, so on the dearh of the second partner the whole estate is assessed for inheritance tax.
Married couples, with sufficient assets, could save the equivalent of their personal inheritance tax allowance by setting up their Wills in a discretionary trust made out in favour of their spouse or children.
You can make a Discretionary Will Trust Online here
There is a comprehensive guide to Discretionary Will Trusts here
