Inheritance Planning Calculator
Project estate value and tax impact.
Estimate inheritance tax on a future estate. Configurable for any country's rules. Enter estate value and local estate tax threshold tax-free for an instant result.
What this tool does
This tool estimates inheritance tax liability on a future estate. Enter current estate value, tax-free threshold (local estate tax threshold), tax rate, years until death, and expected estate growth rate.
Enter Values
Value is unusually high — please double-check
Value is unusually high — please double-check
Formula Used
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Calculations, display, or translation — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Inheritance tax planning requires knowing your expected estate value, relevant tax thresholds, and time horizon. This calculator projects future estate value and estimates tax liability based on your inputs.
800,000 estate with 325,000 local estate tax threshold at 40% inheritance tax rate, 15 years from death with 3% growth: future estate 1,247,000, taxable 922,000, estimated tax 369,000, net to heirs 878,000 (70% of gross).
The tool uses user-configurable thresholds and rates so it works globally. 2026: local estate tax threshold 325,000, residence local estate tax threshold additional 175,000, main rate 40%. federal: 13.61M threshold, 40% rate. Other countries vary widely - input your applicable figures.
Run it with sensible defaults
Using current estate value of 800,000, local estate tax threshold of 325,000, tax rate of 40%, years until death of 15, the calculation works out to 368,549.57. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Current Estate Value, local estate tax threshold (Tax-Free), Tax Rate, Years Until Death, and Estate Growth Rate — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
How the math works
Future estate compounds at growth rate. Taxable = future estate - threshold. Tax = taxable × rate. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
Using this to think, not predict
Financial plans are wrong by month six — new information arrives and reshapes the picture. The point of running projections isn't to be right in ten years; it's to be less wrong in the decision you're making this week.
What this doesn't capture
Real plans get re-run against new information every year or two. The result here is a reasonable direction, not a destination. Treat it as a starting point for thinking, not a commitment to a specific future.
£800,000 £ estate, £325,000 £ free, 40% rate, 15 yearsyrs × 3% = $368,549.57.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Future estate compounds at growth rate. Taxable = future estate - threshold. Tax = taxable × rate.
References
Frequently Asked Questions
How to reduce inheritance tax?
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