Know the law and act to ensure your wealth is protected against excessive inheritance taxes. This could mean that your family can transfer valuable assets and use them, rather than the tax authorities.
Inheritance tax will be payable on assets like property, real estate, and other assets if they exceed the current IHT threshold. PS325,000 is the magic number to pay 2011-122% tax for amounts above this threshold. The tax bill for properties worth PS330,000 that exceed the IHT threshold by just PS5,000 will be PS132,000. You can get the right advice on inheritance tax planning in the UK via https://inheritance-tax.co.uk/area/inheritance-tax/.
This can be avoided by distributing wealth as gifts exempted from inheritance tax. Here are some examples of situations in which HMRC allows tax-free gifts:
Some people, groups, and organizations may be eligible for tax-free gifts. This applies to your spouse and domestic partner while they are in the UK. Eligible charities, major political parties, and national institutions are all exempt from tax.
Annual distributions of up to PS3,000 are possible and are exempt from IHT. You can give this at your discretion: the first car, or a vacation abroad.
You are entitled to one small gift in each tax year. EUR250 can be used to give small gifts to anyone and is not subject to IHT.
Keep in mind the seven-year rule. Gifts are exempt from IHT if they are made more than seven years before the death of the donor. You can transfer all assets to your beneficiary tax-free.