Estimate the inheritance tax (IHT) owed on an estate — including nil-rate bands, spousal exemptions, and charitable deductions.
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Enter the total gross value of the estate — including property, savings, investments, and personal possessions. Then add any debts, funeral costs, spousal transfers, charitable gifts, and other reliefs. Adjust the nil-rate band and tax rate to match your jurisdiction (U.S., UK, or elsewhere), then click Calculate to see the estimated tax liability and a full breakdown.
Inheritance tax can quietly consume a significant portion of an estate if not planned for in advance. In the UK, estates worth more than £325,000 face a 40% tax on the surplus — so a £600,000 estate might owe £110,000. In the U.S., the federal estate tax exemption is $13.61 million in 2024, but several states impose their own estate or inheritance taxes starting at much lower thresholds — Oregon and Massachusetts begin at just $1 million.
Understanding your potential liability early allows families to structure wills strategically: using spousal transfers, charitable donations (which can reduce the rate to 36% in the UK), trusts, or lifetime gifting programs. A person with a £900,000 estate and a £175,000 residence nil-rate band could reduce their tax bill by over £70,000 simply by structuring assets correctly. This tool helps you model different scenarios quickly before consulting a financial adviser or solicitor.
Step 1 — Net Estate: Gross Estate − Debts − Funeral/Admin Costs
Step 2 — Taxable Estate: Net Estate − Spouse Exemption − Charitable Gifts − Gifts & Reliefs − Nil-Rate Band − Residence Nil-Rate Band
Step 3 — Tax Due: Taxable Estate × Tax Rate (standard 40%, or 36% if ≥10% of net estate is donated to charity)
The charity reduced rate applies when charitable gifts represent at least 10% of the net estate after deducting all nil-rate bands.
In the UK, the nil-rate band is £325,000 and the residence nil-rate band adds up to £175,000 (total £500,000 per person). In the U.S., the federal estate tax exemption is $13.61 million per individual in 2024. Many U.S. states have lower thresholds — adjust the "Nil-Rate Band" field to match yours.
In most countries, transfers between married couples or civil partners are fully exempt from inheritance tax — enter the full value of assets passing to your spouse in the "Spouse / Civil Partner Transfer" field. The surviving spouse may also inherit the deceased's unused nil-rate band.
Yes. In the UK, donating at least 10% of your net estate to charity reduces the standard 40% rate to 36%. In the U.S., charitable bequests are fully deductible against the estate. Use the "Charitable Gifts" field and set the charity rate to 36% if applicable.
This tool uses configurable thresholds and rates, so it works for any jurisdiction. Simply enter your country's nil-rate band, residence exemption, and applicable tax rate. Always consult a qualified estate planning attorney or tax adviser for advice tailored to your specific situation.