Hi. Is Inheritance Tax against all of my estate or just the residuary estate? Also, what happens if my estate is passing to charities? Does that help reduce the inheritance tax on my residue estate? Thank you.
Team QLAW! Posted new comment 9th September 2024
Hi Dave and thanks so much for your question. Yes, IHT is potentially payable against a whole estate, not just residue. And/but yes, gifts to charities are exempt from IHT. Also, if you leave more than 10% of your estate to charity then the remainder of your estate is charged at a reduced IHT rate of 36% rather than 40%. Hope that helps Dave – and thanks again for your post. Rgds Team Qlaw!
Team QLAW! Changed status to publish 30th August 2024
Write your answer.
If you want to learn more about residuary estates check out our blog post: What is Residuary Estate