What is inheritance tax?

You could be forgiven for assuming that once you’re dead, you no longer pay tax – but this, in fact, is not necessarily the case.

Inheritance tax is the tax on someone’s estate when they pass away, but it can be a little complicated depending certain factors.

This tax is supposed to reduce wealth inequality by taxing some of the money that is passed down through wealthy families, and it can result in tens or hundreds of thousands of pounds in fees.

Only 3.9% of estates, however, actually pay inheritance tax and everyone has a minimum set allowance before they pay tax on anything they leave behind.