Estate value
£560,000
1 property + 12 items + accounts & pensions
Tax-free allowance
£500,000
£325k nil-rate + £175k residence band
Taxable estate
£60,000
value above your allowance
Estimated IHT @ 40%
£24,000
before any planning
🧾 Inheritance Tax position
What your family would owe today, in plain English computed against INHERIT · E&W Tax · reviewed: StableEstate value
£560,000
Everything David owns, less the mortgage on 23 Maple Drive.
Tax-free allowance
£500,000
The slice that passes on with no Inheritance Tax at all.
Taxable estate
£60,000
£560,000 − £500,000. Only this slice can be taxed.
Estimated IHT
£24,000
40% of the £60,000 taxable slice, before any planning.
Nil-rate band£325,000
Everyone gets this. The first £325,000 of any estate passes on free of Inheritance Tax, whoever inherits it.
Residence nil-rate band£175,000
An extra allowance for your home when it goes to children or grandchildren. 23 Maple Drive passing to David's children unlocks this.
What planning could do
Three things a qualified adviser might suggest. Each shows roughly how the £24,000 estimate could fall — these are illustrations, not advice.
Charitable gift (36% rate)
Leave 10% of the taxable estate to charity — the rest is then taxed at 36% instead of 40%.
Gift to charity£6,000
Taxed slice now£54,000
Rate36%
IHT now£24,000
Estimated IHT£19,440
Saves ~£4,560 in tax + £6,000 to a cause David cares about
computed against INHERIT · E&W Tax · reviewed: Stable
Guidance, not advice. A tax adviser should confirm the gift qualifies for the reduced rate.
Lifetime gifts
Give some money away now. Gifts drop out of the estate after 7 years; £3,000 a year is exempt straight away.
Annual exemption£3,000/yr
Gifted over time£40,000
Taxable slice after£20,000
IHT now£24,000
Estimated IHT£8,000
Saves ~£16,000 if David lives 7 years after the gifts
computed against INHERIT · E&W Tax · reviewed: Stable
Guidance, not advice. The 7-year rule and your own needs should be reviewed with an adviser first.
Pass to spouse first
Anything left to a husband, wife or civil partner is fully exempt — and their unused allowance can transfer to you later.
To Margaret (exempt)£60,000
Taxable slice after£0
Allowance carriedUp to £500k
IHT now£24,000
Estimated IHT£0
Defers all £24,000 — tax may still apply on the second death
computed against INHERIT · E&W Tax · reviewed: Stable
Guidance, not advice. This defers rather than removes tax; a will needs to be drafted to reflect it.
💡 A tax adviser's planning could reduce the £24,000 estimate by more than their fee. We can compare STEP & CIOT-accredited advisers matched to your estate.
Assets by category
Property
£385,000
1
Pensions
£82,000
1
Bank accounts
£47,500
3
Watches
£9,200
1
Furniture
£4,800
3
Books
£4,200
~200
Model railways
£4,200
47
Coins
£3,400
1 col.
Cameras
£2,800
1
Other
£2,580
4
How the £24,000 is worked out
TaxGross estate (incl. property & pension)£560,000
Nil-rate band (NRB)−£325,000
Residence nil-rate band (RNRB)−£175,000
Taxable estate£60,000
IHT at 40% of £60,000£24,000
RNRB applies because 23 Maple Drive passes to David's children. If Margaret inherits first, her unused allowances can transfer to David's estate — see the "Pass to spouse first" scenario above.
computed against INHERIT · E&W Tax · reviewed: Stable
Beneficiaries
PR
Paul Richards
5 items
~£15,000
AR
Andrew Richards
1 item
~£2,800
SR
Sarah Richards
1 item
~£1,650
MR
Margaret Richards
Spouse
Residuary
4 items unallocated (~£3,050) · Property to children (unlocks residence allowance)
Estate completeness
7 of 10 areas started
Personal details
Complete
Assets
12 items
Liabilities
Mortgage recorded
Beneficiaries
3 people
Executors
Sarah named
Guardians
N/A — no minor children
Tax position
£24,000 estimated
Legal documents
No will uploaded
Lifetime transfers
Not recorded
Pensions & insurance
4 policies, 1 pension
Key contacts
MLP
MLP Law
Solicitor
F&C
Richards & Co
Tax adviser
SA
Simply Accounts
Accountant
LB
Lloyds Bank
Main bank
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This summary is based on the information you have entered. IHT figures are estimates computed from your estate against the open INHERIT standard's England & Wales tax rules (status: Stable, reviewed by a named reviewer) — they are guidance, not tax advice or a formal valuation, and your actual position may differ. The planning scenarios are illustrations of what an adviser might consider, not recommendations. MyFamilyInherits does not provide legal or tax advice; all services are delivered by the regulated firms shown (SRA / CIOT / STEP). Item values are approximate unless marked as professionally valued. You will never be charged automatically.