What % of all deaths (uk) resulted in an inheritance tax bill in 2021-22? you're not previewing try and have a guess?

[HecatesBees]

What % of all deaths (uk) resulted in an inheritance tax bill in 2021-22? you're not previewing try and have a guess?

Some 4.39pc of all deaths resulted in an inheritance tax bill in 2021-22 – a total of 27,800, according to official figures.

If your guess was higher, pick YANBU
if your guess was lower pick YABU

(I would have guessed higher, maybe even up to 50%

This is a tax on (the estates of) single people. £325k is not a big estate. It would only buy you the nastiest of small houses here. The sort of person who lives there has no savings at all and lives from pay cheque to pay cheque, having used up any spare cash on the mortgage. But hey, perhaps we don't want nurses, paramedics and posties in the south east.

You work for you and your kids, not the neighbours kids. So why when you die shouldn't that pass to your kids!

Life isn't fair if we want to drive aspiration we need to stop trying to make it

But as a single person whoever gets my estate (a nephew) is gaining a huge windfall out of the blue!

So if he gets £1m or £600k he is still a very lucky person. How is he in sby way disadvantaged by receiving that lump sum?

Exactly, @burnoutbabe People are just greedy.

"£325k is not a big estate."

According to HMRC, if you leave an estate worth £300k that puts you in the top 16% of estates.

So, you have more than 84% of people who die in this country.

Without wishing to sound harsh, that is a decision that she made.

She could have made a will leaving something to her children and would also have been able to pass on up to £500k to them.

She left everything to her second husband so he now gets to pass on up to £1 million if he has children.

It is unfortunate for the children of the first marriage that she made that decision but it was open to her to pass on up to £500k to them.

What happens to IHT if the house sells on the open market for below its probate value? Is any of the tax refunded?

I knew it was 4%

The government are taking more and more. One day they'll probably take it all. How dare someone's family be given something for free.

The nil rate band has been the same for 20 years. The 3k gifting limit has been the same for 40 years FOUR ZERO. 40 years ago 3k went quite far. Now it won't even buy you a decent second hand car. The gifting limit and nil rate band should increase each year with inflation.

My inlaws are doing their best to pass as much of their money and assets to their sons as possible while they are still in good health and expecting to live a long time.

Yes you can claim IHT back, but there are a few conditions that you have to meet. If you don't meet them then you can't claim the tax back.

Basically, it must be the executors who sell the house (not the beneficiaries), it must be sold within four years and it must be sold for at least 5% less.

I knew it was 4%, but suspect that figure will increase quite rapidly in the next 10-20 years as those who have benefited from house price rises, especially in London and the SE, start to die off.

The only person I know whose estate attracted inheritance tax was someone who was absolutely not in the top 4% of wealthy people. But she had never married and had no children, so tax had to paid on everything over £325,000.

Her house wasn't worth that much but she had worked full time from the age of 16 to 60 and had a decent occupational pension as well as her state pension. She lived very frugally and died in her late 90s, so had time to build up a lot of savings.

Like others have said, this % is going to shoot up in the next 10 years.

People who benefitted from house price rises have already been dying off for a long time. That's not a new thing at all. If there are increases, it's unlikely to be due to that.

My PILS don’t intend their estate to pay a penny in IHT, despite being worth 2 million, so we will do everything we can and take advice to avoid it.

How do those people who claim to be planning to avoid paying IHT propose to do that? I have researched legal ways to avoid paying it but not found anything significant, other than spending it before you die!

I’d love to know what you have done to protect aka hide your money.

There are two main ways of doing it. In that situation mentioned either:

1. Sell all the assets above £1 million. In the situation above that would give £1 million in cash. Use that money to buy a business of some sort (or a farm). Businesses and farms are currently totally exempt but under the new rules, only the first £1 million will be exempt. Or,
2. Give away £1 million of assets tomorrow and hope that you live for another seven years.

Of course, you can do both of the above at the same time.

I have questions.

Do you think that all inheritances should be taxed, or only over a certain amount?

What's the difference between an inheritance and a gift?

I think the point is that within the group where IHT is paid, £325k is not a large estate.

That wasn't the point being made by the person I responded to . What was it she said:

"It would only buy you the nastiest of small houses here. The sort of person who lives there has no savings at all and lives from pay cheque to pay cheque"

I havent read every single post, is there a go to simpletons guide about how to work out IHT like a calculator where you put in your circumstances to see what it would be?

Here you go:

https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value#use-the-online-inheritance-tax-checker

Kind of irrelevant as was speaking about the fathers assets anyway.

I would have guessed 5% so YANBU but not by much.

We're did once try to work out if there'll be IHT on my parents' estate one day, and although they are very cagey about money and definitely pretend to have less than they do, from what they've said, there won't be, and they are very comfortable indeed, despite regular protestations that they are facing old age on the breadline, due to our irresponsible decision to send ourselves to private school aged 7, and my Mum's insistence that it is impossible to feed 2 adults for less than £200 a week.

It's more likely they'll lose it all to care home fees, although they both claim they will fly to Dignitas before going into residential care at the moment.

Get good financial advice and look to putting it all in trust.

When my mum died we had to pay some inheritance tax as she owned her own home which took her estate over the threshold. I was upset about that as she had worked hard all her life and paid 40% tax when working.
At the same time some Marquis of somewhere in London died at the time and paid no inheritance tax despite being worth millions if not billions as all was passed to his son in trust….

Trusts are actually quite expensive and on an ongoing basis rather than a one-off IHT bill. There's normal IHT on the trust initially if the trust fund gets put into a trust by a Will, then exit fees and it is taxed every ten years.

Sure. If you actually read my post, you'll notice that it wasn't aimed at you specifically, but was instead a commentary on the thrust of comments in general across both threads. So no need for rudeness.

They should give longer to pay it in my opinion and if the house is still lived in by one of your children then it should perhaps be deferred. I don’t know how they pay it.

There are always going to be anomalies though and most couples can pass on £1m without tax so it’s still a significant amount of money to be left.