Most Brits haven’t thought about inheritance tax

Ryan Bembridge

August 7, 2017

The vast majority of Brits who want to leave assets to loved ones haven’t considered the impact of inheritance tax, Drewberry’s Wealth & Protection Survey has found.

Inheritance tax is paid on estates worth over £325,000 when people die, which is why it can make sense to have a mortgage and pass on money in cash, which is tax free if they live for more than seven years after gifting.

However though two in five (39%) working Brits want to leave something to their lived ones nine in 10 (87%) haven’t even considered the impact of inheritance tax.

Families urged to take advice on inheritance tax

Tom Conner, director of Drewberry, said: “The point is that inheritance tax is no longer just for the ‘Downton Abbey Set’.

“The 2016/17-tax year saw 45,000 UK households hit with IHT bills and this number is set to rise even with the introduction of a new residential nil-rate band.

“Inevitably, many families will find it’s well worth paying out for good financial advice.

“Anyone who keeps their head in the sand from here may as well include a cheque to the taxman when they come to write their will.”

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