Inheritance Tax Explanation Guide

Summary

Inheritance tax is applicable if an estate exceeds £325,000, with a 40% rate on the excess. Exemptions include gifts to spouses or charities, and reliefs like Business Relief can reduce tax liability. When drafting a will, its crucial to inform clients about these aspects to ensure they understand the potential tax implications on their estate. Consider providing specific examples or further details if needed.

Full Conversation

Draft this as a letter
Sure, here's the letter:
---
Dear [Client's Name],
I hope this letter finds you well. As we discuss your draft will, I would like to provide you with some important information regarding inheritance tax to ensure that you fully understand the implications for your estate.
- Threshold: Inheritance tax is only due if the estate's value exceeds £*,*.
- Rate: The tax rate is typically *% on anything above the threshold.
- Exemptions: Gifts to a spouse or charity are usually exempt.
- Reliefs: Certain reliefs, like Business Relief, can reduce the tax owed.
Please let me know if you need more specific details or examples, and I would be happy to provide further information.
Best regards,
[Your Name]
---
Feel free to personalize it further according to your preferences!