Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Inheritance Tax (IHT) planning is key to ensuring your loved ones keep as much of your estate as possible after you die. There are a variety of ways to mitigate against the effects of IHT and using a Will is just one of them. The simple answer is yes, you can avoid Inheritance Tax with a Will. Below we will look at some of the options available to you. Of course, IHT is only a problem if your estate exceeds £325,000.
There is a complex maze of rules surrounding Inheritance Tax (IHT) which means every estate must be reviewed in detail to determine how much, if any, IHT is payable. You must carry out sufficient investigation into the extent of the estate to establish its value. This must include enquiry about the extent of any relevant gifts made by the deceased during their lifetime.
Once the extent of the estate is known, unless the estate is an “excepted estate”, full details must be provided to HMRC, even if no IHT is due. When you have carried out the necessary IHT calculations, the next step is to pay the tax. It is important to note that Confirmation to the estate (the Scottish equivalent of Probate) cannot be granted until after at least some of the IHT has been settled with HMRC.
The short answer to this question is “No”. However, getting divorced can have a serious impact on your Will. The Succession (Scotland) Act 2016 radically changed the Act of the same name from 1964, with the impact of divorce being centre stage. So, whilst divorce does not revoke a Will in Scotland, ignoring it can have serious consequences.
Inheritance tax (“IHT”) payments have increased in yield by a third, according to data recently released by HM Revenue & Customs (HMRC). HMRC collected £1.5 billion in Inheritance tax (IHT) in the tax year to June 2021. This represents a £400 million increase from the same period a year ago.
There are several misconceptions about what happens to your debts when you die. Many people believe that your debts die with you, or that family members become responsible for paying your debts after you die, but this is simply not the case in Scotland. In this article, we look at what happens to your debts after you pass away, and several circumstances which may arise out of debts on the estate.
