Once you have prepared your Will, it is easy and natural to then put this to the back of your mind. However, life events occur that may mean you need to reflect and make changes to your Will otherwise it may not be in line with your new circumstances. ...
This calculator will calculate the potential inheritance tax (IHT) liability on a person’s estate at death, based on the current tax rate, nil rate band and reliefs. In general, all your assets, including your home and any other property, as well as your savings and investment and any life policies you have not put into trust may be added to together.
Then, to the extent that the total exceeds the nil rate band of £325,000, it is subject to inheritance tax at 40%. Include all the amounts for your assets in the boxes provided, but do not include any assets that will pass to your spouse or civil partner – unless he or she is domiciled outside UK.
Then complete the details for any mortgages, loans or other liabilities you have outstanding. The calculator will tell you the total value of your net assets and your taxable estate, as well as your estimated IHT liability, on the assumption that you died this tax year.
For example, with a property worth £780,000, investments of £550,000 and no liabilities or business assets, the value of the net assets is £1,330,000 of which £1,005,000 is subject to IHT at 40%, making the tax liability £402,000.