Wills and inheritance tax

 

A gift in your Will to a charity is tax free. This could bring the value of your estate below the inheritance tax threshold – which means more will go to your loved ones.

 

When you die, your estate will be valued to see if it is liable for inheritance tax. The valuation will include the market value of your home (not the value when you bought it).


If your estate is worth more than the threshold set by the Government, then the amount over and above the threshold will be subject to inheritance tax at 40%.

 


2009 threshold

 

The threshold in 2009 is £325,000, and is likely to rise year on year – so you need to be aware of current figures.

 

However, any gift in your will to your spouse, civil partner or a charity is free from tax, as the value of these is deducted from your estate before inheritance tax is calculated.

 

So a gift to the Parkinson's Disease Society could bring the total value of your estate below the threshold – and avoid your estate being taxed altogether.

 


Consult a solicitor

 

Of course, individual circumstances can affect wills and inheritance tax. So it's always best to consult a solicitor about the best tax-saving options for you.

 

For more information on avoiding inheritance tax please ask your solicitor.


 

 

Request your free Will Guide

To request your free Will Guide, or ask any questions, contact our legacy team on 020 7963 9306 or email legacies@parkinsons.org.uk

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