The commercial website CompareTheMarket.com has an informative article about inheritance tax in the UK. It’s interesting to compare the system there with the system in the US. Check it out. Here is a brief excerpt:

How does inheritance tax work?

When someone dies, the government needs to know the total value of their assets, less their liabilities (any outstanding debts they have).

Assets include:

• • Money in the bank
  • Property, including property owned abroad
  • Possessions such as furniture, jewelry and antiques
  • Business interests and investments – depending on the circumstances, these could be eligible for business relief
  • Vehicles
  • Any insurance policies not in trust (includes death in service and some older pension schemes)

Inheritance tax is then calculated and, if applicable, paid from the estate, which is what’s left once debts are subtracted from the assets.