Inheritance tax is generally paid on the estate (property, money, possessions) of someone who has died, but not everyone pays inheritance tax. In the UK for 2025, the standard inheritance tax rate is 40%, and it applies only to the part of the estate above certain tax-free thresholds. Key points about inheritance tax include:

• The basic inheritance tax threshold (nil-rate band) is £325,000. Estates valued below this amount usually pay no inheritance tax.
• If you leave your home to your children or grandchildren, your threshold increases to £500,000 by adding the residence nil-rate band of £175,000 to the basic allowance.
• For married couples or civil partners, any unused allowance of the first to die can be transferred to the survivor, potentially doubling the threshold to £1 million.
• Beneficiaries typically do not pay tax directly; the tax is paid from the estate by the executor.
• There are exemptions, such as no tax when inheriting from a spouse or civil partner.
• Changes effective from April 2025 include a move to a residency-based system for inheritance tax and introduction of new rules affecting farms, businesses, and pensions.

Therefore, whether you pay inheritance tax depends on the value of the estate and the relationship to the deceased, with thresholds and rules applying to reduce or eliminate the tax in many typical family situations.

Would further details about inheritance tax in a specific country or jurisdiction be helpful?