About 40-50 percent of the money is included in the inheritance tax. It is used in difficult times like the times when we lose our loved ones. But there are a lot of things that one must be aware of the inheritance tax. You can also get more information about the inheritance tax planning through various online sources.
Image Source: Google
Here's what you need to know about the inheritance tax
1. Inheritance tax must be paid by the individual or family who has inherited something after death.
2. This tax is also known as death duties and is only paid on the heritage item not the real value at the time of death.
3. Inheritance and estate taxes are not the same. Estate taxes are related to the real overall value and the inheritance tax is paid only on items that have been passed down to the individual or family.
4. Anything of value, such as property, jewelry, antiques, and other collectible items as well as any investments and insurance policies subject to this tax
5. There is a way, however, of minimizing the amount of tax payable or even may be legally exempt from paying taxes on inheritance.
6. No tax is payable if the property is derived seven years before the death of the donor.
7. There are also other ways to avoid having to pay a large amount of inheritance tax. An experienced attorney inheritance tax or financial advisor will be able to advise you on your own circumstances.
Now that you know more about what happened after the death of a loved one, perhaps now is the time for you to think more about the inheritance tax.