Answer: Inheritance tax is a tax imposed on the estate of a deceased person. It is based on the value of assets transferred to beneficiaries after the person’s death.

Answer: No, inheritance tax and estate tax are not the same. Inheritance tax is paid by the recipients of an inheritance, while estate tax is paid by the estate itself before any assets are distributed to beneficiaries.

Answer: In most cases, the responsibility of paying inheritance tax falls on the beneficiaries who receive the assets. However, the executor of the estate is responsible for filing the necessary tax returns and ensuring that the tax is paid correctly.

Answer: The inheritance tax threshold, also known as the nil-rate band, is the amount of an estate that is exempt from inheritance tax. The threshold varies by country and is subject to change. It is important to consult the tax laws of your specific jurisdiction for the current threshold.

Answer: In some cases, inheritance tax can be minimized or avoided through careful estate planning. This may involve utilizing tax exemptions, setting up trusts, making lifetime gifts, or taking advantage of other legal strategies. It is recommended to consult with a qualified estate planning professional to explore your options and determine the best approach for your specific situation.