One of the most important things you can do to help reduce the amount of Inheritance Tax you could be liable to pay is to write a Will. If you die without a Will, you are said to have died intestate. Your estate is distributed according to a pre-set formula and you have no say over who receives what and how much tax is payable. Dying intestate means that you may not be making the most of the Inheritance Tax exemption which exists if you wish your estate to pass to your spouse or registered civil partner. The distribution of the estate of a person that has died intestate are complex and very specific. There is no flexibility or discretion for their variation by the person dealing with the estate.
If you don't make a Will, then relatives other than your spouse or registered civil partner may be entitled to a share of your estate and this might trigger an Inheritance Tax liability. You also need to keep your Will up-to-date. Getting married, divorced or having children are all key times to review your Will.
(England and Wales)
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Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.