Demand for IHT advice growing over 2020 Budget fears
18 June 2020
Demand for inheritance tax advice is increasing as homeowners remain unsure of the different ways to protect their families, according to new research from Openwork.
Nearly two out of five (37%) advisers reported growing demand for general inheritance tax advice in the past year, with more than half (52%) of over-45s concerned about leaving their families with a large inheritance tax bill because they failed to take action.
The investment network’s nationwide study found that just 15% of homeowners aged 45-plus have taken specific advice on minimising their bills, rising to 17% among the over-65s.
Around one in eight (12%) individuals have made gifts to family members, with 17% of over-65s making payments to reduce their liability, while 5% of those surveyed said they have set up trusts to benefit their families.
Going forward, nearly a third (31%) of adults plan to make gifts of more than £5,000 to children or grandchildren in the next five years but worry about getting it wrong.
Mike Morrow, wealth and platform director, said: “Many people are still anxious about inheritance tax, which can often seem unfair when you are looking to pass your estate to your children and grandchildren, to ensure their long-term financial security.
“The upcoming Autumn Budget is expected to include changes to IHT rules which could look to capture even more wealth, increasing concerns among people. It is therefore more important than ever that individuals seek support from a qualified financial adviser.
“However, with only one third having taken action, it is evident that the profession needs to do much more to promote its benefits to people so that they know what support is available.”
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