ABSTRACT
Originally known as 'death duties', inheritance tax dates back to 1964. Inheritance tax planning is essential where an individual has accumulated a large estate. There are a number of ways in which the tax can be avoided. Inheritance tax can be saved by one spouse leaving property up to the value of £150,000 to the children and the rest to the spouse. The surviving spouse cans later leave £150,000 to the children exempt of inheritance tax. Inheritance tax is payable when the Estate is submitted with the probate application. On certain assets the duty can be deferred by six months after which interest accumulates. In certain cases the Personal Representative does not have the funds or access to them until after Probate is granted; in such instances there are provisions for the tax to be paid by ten equal annual payments.
