Do you know someone with a deceased estate?
Are you wondering how to deal with such properties?
If the deceased person left a will, it specifies what should happen to their estate. The executors – the people in charge of settling the estate – should be named in the will.
If there is no will, the person is said to have died “intestate,” and different rules apply (known as the rules of intestacy).
In general, a spouse or civil partner inherits all of the deceased’s personal belongings as well as the first £270,000 of their estate. The surviving spouse or civil partner receives half of the remaining estate, and the other half goes to any surviving children.
Now, what about inheritance tax?
Who will pay for it?
An inheritance tax may be due if the estate has a value over a certain amount. Tax-free allowances, also known as nil band rates, are currently set at £325,000. Anything over that amount is subject to a 40% tax rate.
If the home is left to children or grandchildren, the tax-free allowance increases to £425,000.
An estate left to a spouse or civil partner is not subject to inheritance tax. Likewise, charitable gifts are exempt from inheritance tax.
For more information on deceased estates, leave a comment below and get in touch with us today.
Source: Age UK
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