Inheritance Tax (IHT) is a tax that many people don't consider or presume that it is something that only the rich and the elderly should be concerned about. However this is certainly not the case.
The starting point at which you begin to pay IHT is £325,000 if you are single or divorced or £650,000 if you are married, in a civil partnership or widowed. These amounts are referred to as the nil rate band.
Everything in your estate over and above your nil-rate band, including the value of your house, savings, investments and assets is subject to 40% tax when you die. That's 40p out of every pound you own - or £400 out of every £1,000!
This may sound a lot, but by simply adding up the value of your house, savings, investments and any other assets you may be surprised how much you and your estate are actually worth.
With the dramatic increase in house prices and investments over the last few decades, the value of your estate could have increased substantially, although you may not have considered your IHT liability.