A recent survey has shown that 44% of individuals with assets totalling £1m or more have not looked into inheritance tax planning (IHT).
Unplanned Inheritance Tax (IHT) Consequences: A Wake-Up Call
The recent research by Investec Wealth & Investment has unveiled another alarming statistic – 21% of millionaires are without a Will in place. This omission carries significant implications, as their estates will be apportioned according to the rules of intestacy.
Staggeringly, it's been observed that over 2 out of 5 individuals (42%) have not sought any professional advice or taken measures to alleviate their inheritance tax (IHT) liability. Considering the current IHT threshold, it appears to be disproportionately low in relation to the surge in property prices and other financial factors.
This status quo is set to persist at least until 2026.
The importance of meticulous estate planning cannot be overstated.
A comprehensive Will and a tax-efficient estate arrangement is imperative. Neglecting this is risky: the prospect of burdening your loved ones with a substantial IHT bill, which is levied at 40% beyond the threshold (exclusive of any exemptions). Notably, this sum must be settled before the probate process can commence.
Take a moment to think about it: Do you possess potentially substantial funds to meet an IHT obligation before rightfully inheriting an estate?
In a financial landscape, fraught with complexities, securing your legacy requires a strategic approach. Engaging in thoughtful IHT planning and safeguarding your assets is a responsibility that transcends mere financial management – it's a testament to your care for those you leave behind.
Do you have potentially hundreds of thousands to pay an IHT before receiving your entitlement to an estate?
0207 183 4595
The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.