When a person dies, their property/estate will is expected to pay any tax due before any amount of money is given to their beneficiaries/heirs. Normally, when you acquire something then there is no tax to pay quickly, but you may have to pay tax later.
At Arrange My Funeral, we help our clients in resolving all the matters related to tax and inheritance of a deceased person.
It’s quite normal that the deceased person might have either paid too much or too little tax money. In such cases, changes to their Income Tax calculation will be made by HM Revenue & Customs. This will end up in either estate owing tax or getting a tax rebate.
An estate might keep on receiving income from various sources such as savings, rent or investments, even after the owner of the estate dies. Income Tax on these sources of income is supposed to be paid by the estate.
Inheritance Tax is paid only by a small number of estates. Right now the Inheritance Tax limit is £325,000, which means that tax is supposed to be paid by estate/property worth more than that. In case you’re married or living with a partner, the estate’s value can be up to £650,000 before you pay for Inheritance Tax.
When you inherit, then there’s normally no tax to pay at that point. After the inheritance procedure is completed, the cash, savings, investments, property and other sources of income will become yours, and then you’re supposed to pay for tax on any income or profits made from them in the common way.
At Arrange My Funeral, we will assist and advise our clients and show them the right path when it’s about tax payment & inheritance when a partner/spous