Inheritance tax is a tax that may apply when someone dies, depending on the value of their estate.
Understanding who pays inheritance tax helps clarify how it works in practice.
Inheritance tax usually applies if an estate exceeds certain thresholds.
Allowances and exemptions may reduce or remove the tax.
Inheritance tax is usually paid:
by the estate
before assets are distributed
Beneficiaries typically receive assets after tax has been settled.
This article explains the basics of inheritance tax, not how much tax an estate will pay.
If inheritance tax raises questions about your wider arrangements, some people find it helpful to think things through before advice or action. Evoa exists for that purpose — before advice and before action.