INHERTITANCE TAX
Depending on the size of the estate there may inheritance tax (IHT) to pay.
The current rate of inheritance tax is 40% on assets above £312,000. This figure will rise to £325,000 in 2009/2010 and £350,000 in 2010/2011.
If the assets have been left to a spouse or surviving civil partner, there will be no immediate tax liability.
However, there may be tax to pay when the surviving spouse dies and, therefore, given the recent changes in inheritance tax it is still worth getting a grant or probate or letters of administration as this will provide clear evidence of the deceased's estate when using tax allowances in the future.
In October 2007 the Chancellor introduced an increase in the threshold for married couples and civil partners to £600,000.00 rising to £700,000.00 in 2010.
This means that rather than each partner having a £300,000 allowance, which only they can use, couples will be able to make use of a £600,000 allowance between them.