It's a sad truth, but the first time most people consider this potential ticking tax bomb is after it's gone off and then, of course, the damage has been done. A lack of understanding of the tax rules means that an increasing number of people who die each year end up potentially leaving more to the taxman than they do to their families or to individual good causes.

Who would pay your tax bill?
Keeping it simple, there is no inheritance tax (IHT) to pay on the first £255,000 (the nil-rate band allowance) you leave, but assets over this amount are currently taxed at 40 per cent unless they pass to your surviving spouse. So, for example, if your estate is valued at £2,000,000, no IHT is payable on the first £255,000. But, the remaining £1,745,000 is charged at 40 per cent - producing a £698,000 tax bill. Who would have to pay this?

Talk to us
If you think that your estate could have a potential IHT liability, the first step is to talk to us - you are probably far wealthier than you imagine. Take five minutes and calculate the potential tax bill your estate could be liable to!