According to data released by financial analysts, Canada Life, inheritance tax (IHT) receipts are set to double over the next decade, which would equate to £10bn per year by 2030. IHT receipts hit record levels this year already, jumping to £5.4bn, up from £5.2bn in 2017/18.
This forecast has prompted calls for changes to IHT thresholds, in particular an increase in the nil rate band – the level below which no IHT is paid on an estate – which has been frozen at £325,000 for the past ten years.
“If you don’t, the law will decide how your estate is distributed and it won’t be the most tax efficient way,”
It is predicted that many estates will be exposed to paying more IHT than is necessary, with approaching 20% of estates worth up to £1m failing to implement an inheritance tax plan.
It should not be forgotten that tacking this issue thoroughly now could have a positive impact on your families finances for generations to come.
Planning for the future, including the time when we will no longer be here, is something we should all consider carefully and regularly review. There are many ways of reducing your families exposure to IHT in the future, and it is important you work with an experienced financial planner to evaluate your precise circumstances.
None of us have a crystal ball, and life has a habit of bowling an unexpected curve-ball from time to time, but feeling reassured that you have addressed your family inheritance tax issues could offer real peace of mind.
With 25 years’ experience helping individuals, families and businesses to place their financial affairs in context with their future goals and aspirations, The Financial Planning Group are here to provide a simple, structured, disciplined and reviewable planning service. We will change the fundamental relationship people have with their money to give them confidence and clarity in their own futures.
If you have any questions concerning Inheritance Tax Planning, or to ensure your family are fully protected, please call Tim Norris on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.