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Most adults have no inheritance strategy

15th August 2017

87% of adults looking to distribute their estate to loved ones have no inheritance tax (IHT) strategy in place, according to research.

Financial adviser Drewberry polled 3,000 people and found 39% plan to leave assets to their families, while only 13% tried to find out if they had any inheritance tax liability.

42% said leaving assets to loved ones ”would be nice” but not a priority, whereas 16% don’t expect to have any assets left to pass on when they die.

Regarding their IHT liability:

  • 87% incorrectly thought their pension savings would attract IHT
  • 12% believed their house would be exempt from IHT
  • 10% mistakenly believed cash and ISA savings are also exempt from IHT.

Looking to the future, 30% expect to inherit £50,000 or more from their relatives during their lifetime.

1 in 5 people in their 40s and 50s expect to inherit assets over £100,000, while only 3.7% believe they will inherit assets in excess of £400,000.

Tom Conner, director at Drewberry, said:

“There are a host of simple planning measures that can save a fortune in inheritance tax, such as getting your will in order, keeping funds IHT-safe in your pension, moving your ISAs to IHT-free options or just giving away your excess assets while you’ve still got at least 7 more years on the clock.”

Contact us to talk about your IHT planning.