How it all works....

We have created some helpful guides to answer many commonly asked questions in regards to Life insurance, Critical illness, Income protection, Trusts and what happens to your estate when you die.

What happens when you die..
Whether you are married or single your estate will be calculated for inheritance tax purposes. For the 2011/12 tax year, no tax is charged on the value of your estate up to £325,000. This is also known as the 'nil rate band' and everything above that is taxed at 40%.

Married person with children:

- Spouse gets everything up to *£250,000 & personal possessions.

- Anything remaining is divided into two.

- Half to the children at 18 or earlier marriage.

-Half in trust during spouse's lifetime - he or she gets the income. On spouse's death this half goes to the children.

If a child predeceases, leaving issue, his issue will take his share between them.

Married person, no children:

- If there are parents, brothers or sisters of the whole blood, nephew or nieces:

- Spouse gets everything up to *£450,000 & personal possessions.

- Anything remaining is divided into two:-

- Half of this goes to spouse.

- Half to parents. If no parent is living then it goes to brothers or sisters or their children.

Married person, no parents, brothers or sisters of the whole blood, nephew or nieces:

- Spouse takes whole estate.

Unmarried person with children:

- Estate goes to children at 18 or earlier marriage.

- If a child predeceases, leaving issue, his issue take per stirpes.

Unmarried person with no children:

- Estate goes to parents.

- If none, then to siblings of the whole blood or their issue.

- If none, then to siblings of the half blood or their issue.

- If none, then to grandparents.

Our Guides

• - If none, then to uncles and aunts of the whole blood or their issue.
• - If none, then to uncles and aunts of the half blood or their issue.
• - If there are no parents, siblings (whole or half blood), issue of siblings, grandparents, uncles and aunts (whole or half blood), or issue of uncles or aunts, estate goes to the Crown (or to the Duchy of Lancaster or the Duke of Cornwall).

*Note that these figures have changed over the years. If considering rules in relation to a death which has already occurred, the figure in force at the date of that death must be used. The figures shown apply for deaths on or after 1st February 2009.
With a little planning you may be able to reduce the bill or avoid IHT altogether.
Things that might count towards your estate include:

Property, Investments, Insurance, Payment from a pension plan or employee death benefit (unless in a trust). Other assets, for example, cars, art, jewelry, furniture. Gifts you have made but still benefit from, for example, a house you have given away but still live in. Certain gifts that you have made in the last seven years.  Assets held in trust from which you receive personal benefit