Question


tocobern

Do have to pay tax on your savings when you die?

If I leave a will giving my children any money I might have saved, would this be taxed? Does this come under Inheritance tax or is inheritance tax only to do with any estate you might leave behind?

4 weeks ago - 5 answers

Best Answer

Chosen by Asker

I'm afraid Grand T is on the right lines, but his numbers are very wrong. You may have to pay inheritance tax (IHT) when you die if the total value of all your property when you die (your estate) is worth more than £325,000. This includes everything such as house, savings, property, shares etc. For these purposes the value of your estate will include anything you have given away within the previous 7 years, with a few exemptions. One is you can give away up to £3000 (not £6000, and in total to anyone, not to each child) per year without it counting. But if you do not give away £3000 in a particular year you can carry the unused amount forward for one year which is probably where Grand T got £6000 from. The value of your estate will not include anything left to your spouse or civil partner. EG, if you leave £500,000 in total, provided at least £175,000 is left to your spouse then none of it will be taxed.

by SimonC

4 weeks ago

Asker's Rating: 

Other Answers

Depends how much you leave when you depart! If you are very wealthy, it is best to start giving your children £6,000 per year each as a gift. This way no tax will have to be paid! If you are poor, don't worry. Basically, if you have over £100K including property, you should get legal advice, which will not cost much and may well pay for itself a million fold!

by Grand T- 4 weeks ago

Anyone who has worked hard all their life, paid exorbitant taxes and still managed to save something will be taxed to the grave and beyond. This is in order to pay for sections of the community who hang out begging bowls.

by BMW- 4 weeks ago

If your will says that your children are left your savings, that money is still part of your estate. Inheritance Tax is charged on excess where an estate is valued at more than £325,000. That includes any property (eg house), savings, and any other assets. There is no specific tax relating to savings on its own.

by steffi- 4 weeks ago

Unless your entire estate, including property, savings, assets etc is above £325,000 then there will be no inheritance tax to pay. Whilst you are alive you can give money away tax free - one gift of up to £3000 in a lump sum to one person, and then as many small gifts of up to £500 as you wish, as long as none of the £500 gifts go to the same person that you gave the £3000 to.

by Cala- 4 weeks ago