Most people underestimate the amount of money they will inherit from their parents by tens of thousands of pounds, a recent survey has found.
This lack of financial understanding has led to increased bills for Inheritance Tax (IHT). While the government and HMRC might revel in this ignorance, it is important that everybody plans for their death.
The survey found that, despite the huge sums of money involved, only 22% of UK adults admitted that their family discussed inheritance. While this means that many people inherit more than they were expecting, a family member can inadvertently leave their loved ones with an enormous tax bill.
Speak now or forever keep your peace
Death and taxes, the two most certain things in life, but we both are subjects the British public try to avoid. And not having that conversation before it’s too late can cost your loved ones dearly.
The earlier you plan your estate, the better. For example, if you die seven years after giving away money, that amount sits outside of your estate for inheritance tax purposes.
Inheritance and its uses
About one in seven people rely on getting an inheritance from their family, the survey found, and some had even decided how they were going to spend the money. For some, a step onto or up the property market beckoned but others planned to pay off outstanding debt.
Whatever your hopes for your family when you die, you need to discuss your plans and wishes with them now. It’s never too early to talk inheritance but it can be too late.
If you need help with an inheritance, call Southport 01704 532890 or email email@example.com