There are many things to consider when you decide it’s time to begin making your Will.
Inheritance tax is an issue that is not always at the top of the list for reasons to make a Will, particularly in the early stages of life when making a Will is probably a result of getting married or having a child. In fact the issue of inheritance tax is often brought up by financial advisors, who, when assessing your affairs is expected to consider what you have incorporated in your existing Will (assuming you have one), and any changes in your Will that will need to be made. As you grow older and hopefully accumulate some wealth it is quite likely that your total estate with one maybe two properties could cause a problem for those that are left to deal with your estate. When making a Will you will choose two executors to administer your estate, and part of that duty will involve making sure that any debts are paid, then what ever is left will form the residue upon which your liability for inheritance tax is then calculated.
As mentioned in my previous post about inheritance tax, the current threshold is £325,000. Inheritance tax will be due at 40 per cent on the amount over this rate.
Please read my post about how to reduce your inheritance tax to find out how you can reduce the amount of inheritance tax that you may have to pay.