A Guide to Inheritance Tax

Dealing with inheritance can be overwhelming—especially when it comes during a time of loss. This guide is here to gently explain the basics of UK inheritance law, so you can feel more confident and less burdened.

1. What Happens When Someone Passes Away?

When a loved one dies, their property, money, and possessions are referred to as their estate. The estate will usually be passed on according to:

·      A valid Will – if the person left one.

·      The rules of intestacy – if there’s no Will.

2. If There’s a Will

·      The Will names an executor – the person responsible for managing the estate.

·      Executors apply for probate, which gives them legal authority to collect, value, and distribute assets.

·      Beneficiaries (those left something in the Will) will receive their share after debts, taxes, and expenses are paid.

💡 Tip: Executors don’t have to do this alone. If you do not want to hand over control to Solicitors and probate services, then The Probate Helper is here to support and guide you. 

3. If There’s No Will (Intestacy Rules)

If someone dies without a Will, the estate is divided according to strict rules:

·      Married partners or civil partners inherit first (but unmarried partners do not automatically inherit).

If there are children, the spouse/partner gets:

·      The first £322,000 of the estate (as of 2025).

·      Half of the remaining estate.

·      The children share the other half equally.

·      If there’s no spouse or children, other relatives (parents, siblings, nieces/nephews) may inherit.

·      If no relatives are found, the estate goes to the Crown (this is called bona vacantia).

4. Inheritance Tax (IHT)

Most estates don’t pay inheritance tax, but it’s important to know the basics:

·      The standard threshold is £325,000.

·      Anything above this may be taxed at 40%.

·      However, many exemptions and allowances reduce or cancel out the tax:

·      Spouse/civil partner exemption – inheritance between them is usually tax-free.

·      Residence nil-rate band – up to £175,000 extra allowance if a home is left to children, stepchildren or grandchildren.

·      Charitable gifts – donations to UK charities are tax-free and can reduce the overall tax rate.

5. Practical Steps

·      Register the death (within 5 days in England, Wales, and Northern Ireland; 8 days in Scotland).

·      Find the Will (if there is one).

·      Notify banks, pension providers, and insurers.

·      Value the estate (property, money, possessions, debts).

·      Apply for probate or letters of administration (if needed).

·      Collect in the assets, pay debts and taxes before distributing what remains.

💙 Remember: You do not have to rush. Probate can take months, and support is available every step of the way.

6.  Taking time for yourself

·      Sorting out an estate is an administrative task, not a measure of your love or care.

·      Grief can make practical matters feel heavier—lean on others for support.

·      Support is available from The Probate Helper. 

7. Where to Get Support

·      The Probate Helper - ME!

·      GOV.UK – official step-by-step guides on probate and inheritance tax.

·      Citizens Advice – clear, compassionate support.

·      Age UK – guidance for older people and families.

·      Cruse Bereavement Support – emotional support if you’re grieving.

✨ Final Thought

Dealing with inheritance can feel daunting, but you are not alone. The rules are complex and not easy to follow but there are many places to turn for help. Be kind to yourself as you navigate both the practical and emotional journey.