When a client dies, someone has to work out whether inheritance tax is owed and how much. That job often falls to the solicitor administering the estate. Getting it right means knowing what counts as the estate, what it's worth, what can be taken off, and which allowances reduce the bill — a sequence you'll repeat in almost every probate matter you handle.
This lesson walks you through that whole calculation in a logical order, so each step builds on the last.
- The Death Estate and Calculation Process — what the death estate is, the rates that apply, and the structured sequence for calculating the tax.
- Valuing and Including Property in the Estate — how property is valued and which assets, including jointly held property and trust interests, are brought in.
- Related Property — when a spouse's or exempt body's property is valued alongside the deceased's, and when it isn't.
- Deducting Liabilities and Expenses — which debts and funeral costs can be taken off the estate.
- Exemptions and Reliefs — the spouse and charity exemptions, and business property relief, which remove value from the charge.
- The Nil-Rate Bands — the standard and residence nil-rate bands, transfers between spouses, and tapering.
- Grossing Up Legacies — how a tax-free legacy shifts the burden onto residue, and how to calculate it.