Inheritance Tax and Estate Planning
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The impact of inheritance tax on even the most modest of estates can be severe. Inheritance Tax is the tax levied by the Government on your estate when you die; a charge of 40% is made on the net worth of everything above the designated threshold which is known as the Nill Rate Band. (Subject to certain exemptions) It is levied upon everything you own, from all properties, cash saving & investments, personal effects and value of life assurance policies.
The Nill rate band for 2008/09 is £312,000.00 which will rise to £350,000.00 in 2010/11.
Inheritance Tax is not just a tax for the wealthy, with substantial rises in property values and increases in personal holdings; the direct affect means that many more people are affected.
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