Inheritance Tax (IHT) may be payable on a person’s estate after they die. Not everyone has to pay it. It's only due if the estate is over the IHT threshold (currently £325,000).
Inheritance Tax is usually paid on an estate when someone dies, but may also be paid on trusts and gifts made during someone’s lifetime. Most estates don’t have to pay Inheritance Tax because the first £325,000 is exempt from IHT. This is known as the nil rate band. Tax is charged at 40% on the amount over £325,000.
When a spouse or civil partner dies, any unused part of their nil rate band can be passed on to their surviving partner. When the second person dies, their estate can benefit from this increased threshold.
Even if your estate is over the threshold, you can pass on assets without having to pay IHT. For example, your estate usually doesn’t have to pay IHT on anything you leave to a spouse or civil partner. Gifts of up to £3000 in each tax year are also exempted, as are small gifts to individuals and some wedding or civil partnership gifts.
Gifts to charities established in the United Kingdom, political parties, housing associations or for ‘national purposes’, eg a museum or university, are also exempt.
Read more about Inheritance tax (HMRC website)
Guide to benefits and money after a death (NI Direct)
More money in your pocket A guide to claiming benefits for people over pension age. (PDF 358KB)
Let's talk moneyA poster for promoting Age NI's free benefits check. (PDF 2MB)
A download is a document (like a research report, a leaflet, or an application form) that can be transferred from our website to your computer. You can download a file, view it on your screen, print it, or save it to your computer.
PDF stands for ‘portable document format’.
Most downloads on this website are PDFs. We use this format to ensure that the document looks the same on everyone’s computer (website pages, by contrast, appear differently depending on how people have got their computer set up).
Computers use a program called Adobe Acrobat Reader to download PDFs. If you try clicking on a link to download a PDF and it doesn’t work, you will need to install Adobe Acrobat Reader onto your computer.
The process is quite straightforward and is free.
PDFs cannot be changed. If you need to be able to type into a downloaded document (for example, if we are offering a letter template that you need to put your name on) we will provide it as a Microsoft Word document rather than a PDF. You can then download it, type into it and save it to your computer.
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Inside this window (below all your web browser menus), there will be a toolbar with options for you to print or save the document.
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We have made every effort to make our PDFs accessible to screen readers. Here is an overview of your accessibility options available in Acrobat Reader. Please ensure that you have downloaded the latest version of Acrobat Reader from the Adobe Reader website to ensure that they are included in your version of the programme.You can use Adobe Reader to read a PDF out loud with the following shortcut keys:
You can also convert a PDF into a web page by following these steps:
You can convert a PDF document into a text file for use with other software and hardware such as Braille printers by opening the PDF and choosing ‘Save as text’ from the File menu.
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