The value of your estate and Inheritance Tax

Many people underestimate the value of their estate. It is made up of the accumulated value of all possessions, including property, bank and building society accounts, insurance policies and pension (unless written in Trust), stocks and shares, unit trusts, cars, jewellery, furniture and other valuables.

Inheritance tax is payable on the value of your estate, once any debts have been paid and the value of bequests to a spouse, charity or other exempt organisation has been deducted. A certain level of estate value remains tax-free below a threshold announced each year in the Budget. Currently this is £231,000. Any value over and about this amount attracts Inheritance Tax, which is applied at 40%.

You can therefore reduce the tax liability on your estate by remembering charities in your will. Including the GDST would allow you to make your will more tax efficient in this way. If you have a taxable estate, this means that a proportion of any gift made to GDST would, in effect, be paid for by the Inland Revenue. 

Including the GDST in your Plans