A survey by Canada Life has revealed that UK Taxpayers are set to pay £10 billion a year in Inheritance Tax by 2030. Canada’s 2019 IHT Monitor also notes that an increasing number of over-45s are seeking financial advice. However, many people are still under-estimating how large an estate needs to be for it to be worthwhile seeking remedies to future tax burdens.
Data from the Office of National Statistics (ONS, 2019) shows that the Government collected £5.2 billion in inheritance tax in 2017/2018. This is an increase of over a billion in ten years.
Don’t under-estimate your worth
The Canada Life survey reported that two-thirds of over-45s still felt that you needed assets beyond £350k before seeing a financial advisor. However, inheritance tax is standard on estates worth £325,000.
There are many options available to those estate-planning to reduce the burden of tax in death. The reluctance of some people to discuss death may be a reason why these options aren’t explored. However, for others, it may be under-estimating the value of assets held. Therefore, it would suggest that a higher number of over-45s would benefit from estate-planning advice to maximise the inheritance they pass on to loved ones.
The content in this article was correct on 10th June 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.
