It is essential to fully understand the meaning of inheritance tax in order to grasp its fundamentals. You might be wondering what inheritance tax is. The tax generally payable on an estate upon the death of a person is called inheritance tax. You can click this link to get guidance on inheritance tax.
In some cases, inheritance tax may be payable on gifts or trusts made during a person’s lifetime. The standard for inheritance-tax payment was PS325,000 as per 2009-2010 standards. The inheritance tax is not payable by most estates because they fall below the set standard. IHT stands for inheritance tax.
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The inheritance tax usually amounts to 40% of the estate. This statement is best understood if you understand the meaning of estate. Your estate is everything you own. This includes your home, any other real estate, bank accounts and investments, retirement benefits from the company, IRAs, and your insurance policies, collectibles, and personal belongings.
The situation was slightly different in October 2007. Married couples or registered civil partners have the option to increase the estate planning margin for their spouses. The amount may reach PS650,000 according to the 2009-2010 standards. Executors and personal representatives have the responsibility of transferring the inheritance-tax margin, or "nil rate band" remaining after the death of the individual to the spouse or civil partner.
A second important question is: Who is responsible for paying inheritance tax? In different situations, inheritance tax can be paid by different people. This tax is usually paid by the executor or personal representative who uses funds from the estate of a deceased person.