Most Brits haven’t thought about inheritance tax
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.
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.”