According to the latest research, more than half of over 50’s don’t seek inheritance tax (IHT) advice.
The research indicates that 58 per cent of individuals over 50 that use a financial adviser have not discussed IHT with them.
This follows the news that IHT receipts are set to increase from £5.4 billion last year to £7 billion by 2024, according to the Government’s official forecasts.
IHT bills have risen consistently since the Government froze the nil-rate band at £325,000 in 2010, with more estates being liable for inheritance tax in recent years.
Estate planning is a key part of ensuring that your legacy is passed on in the most tax-efficient manner.
In England and Wales, every individual is entitled to an IHT-free allowance of £325,000, with anything above this figure attracting IHT at a rate of 40 per cent.
There are ways to mitigate your IHT liability, such as passing property to direct lineal descendants using the residence nil rate band (RNRB) or leaving money to a charity in your Will.
The recent figures highlight the importance of effective inheritance tax planning, particularly with IHT receipts rising. Preparing a Will that is valid, up-to-date and legally binding is essential to avoid lengthy probate cases, ensuring that your wishes are fulfilled.
Additionally, there are many different tax-free allowances for making gifts, including the annual exemption of £3,000.
There are also marriage gifts (up to £5,000 for children, £2,500 for grandchildren and £1,000 for anybody else), and small gifts of up to £250 per year if the person has not received another gift that uses an exemption.
For help and advice with matters relating to inheritance tax, speak to our expert team today.