Admit it! Many of us don’t really know what an Inheritance Tax Bill is but, by just the sound of it I’m sure you don’t wanna know more since for sure it will be one of those expenses you have to shoulder if you have a property and plan to give it to someone when you’re gone.
So, what is Inheritance Tax Bill?
Inheritance Tax Bill is charged on your estate at 40 percent. Yes, that’s right! 40%! It is the tax payable on your estate when you die— be it a real property, personal property, or any property under your name. There are some steps to reduce the amount of inheritance tax for a significant amount such as giving your property as a gift when you’re still alive or selling it outright. But all these involve careful planning which, unfortunately, some people do not have the luxury of time to do or have neglected doing. After all, not all deaths come expectedly.
Prices of houses, in particular, have risen through the years due to increases in earnings, high employment, and elevated consumption. Should the value of your estate go beyond the maximum threshold, your estate will be subjected to the inheritance tax as mentioned. That is roughly over a third of the minimum threshold payable to the government.
With this ridiculous tax charged on your estate upon death, more and more have resorted in the following to avoid inheritance tax bill:
1) Give gifts;
You do not incur in inheritance tax when you give gifts to people or organizations. When you outlive the 7-year potentially exempt transfer (PET) period, the gift becomes fully exempt from inheritance tax.
2) Sell your house
While people grow attached to their homes, more and more have resorted in selling their houses to avoid inheritance tax as it “steals the savings of hardworking people,” argued Anne Hart, wife of Ronnie Corbett, popular entertainer who died earlier this year, who may have sold his £1.3 million seven-bedroom south of London home in 2003 to prevent his children from facing inheritance tax and gifted them instead with cash from the sale. You see, Inheritance Tax bill is what is says it is no matter where you are, be it in London or here in the United States or wherever! It is so much money, period!
Plan well and avoid the inheritance tax bill
Amounting to nearly half as much as the estate itself, inheritance tax bill has proven itself to be a burden to families. Not only does it rip you off your hard earned money probably from years of burning the midnight candle to provide your loved ones and the future generation a better life, it also equally burdens your beneficiaries as they may also have other taxes to pay such as rental income from a house left to them in a will.
Worse, the idea of paying taxes your whole life and even at the end of it is frustrating enough to want to avoid it as much as you are able to. This is why people are selling their houses to avoid the inheritance tax bill. While there is no fun in planning your death, there is definitely a lot of fulfillment and satisfaction when you will know for a fact that your assets built by your hard earned money will go to your partner, children, loved ones, or any organization that you love and care for, and not to the government, which has been taxing you your whole life even at its end.
If you think that the second option is a more viable and beneficial step for you, Kahuna Buys Houses can offer you a chance to sell your house fast for all CASH! All you have to do is call (480) 376-1622 or visit our website and fill out the form at www.kahunabuyshouses.com!