New research has revealed that many UK families are poorly prepared to cope with inheritance issues including tax bills due to be paid when someone dies.
The cost of inheritance tax (IHT) can be managed using efficient estate planning and by putting wills in place. Those seeking financial planning services in Shropshire, Cheshire and other parts of the country can rely on wealth management services for advice on IHT, yet the recent research suggest many families are unprepared.
Data uncovered by the study indicated that fewer than one in ten respondents believed their parents had a register stating their assets forming part of a person’s estate. These include, details of investments, insurance policies, pensions and personal accounts. Findings also indicated that only two in every five people are sure their parents have made a will, and only one in five could confirm their parent(s) had nominated a lasting power of attorney (LPA).
Here in the UK, inheritance tax is currently levied on the final estate of a person who has passed away and is leaving their assets to nominated beneficiaries, providing that the sum total of the estate’s value is more than £325,000.
In circumstances where this tax is due to be paid, it is typically charged at 40%, however this does not need to be the case. If effectively managed using wills and effective tax strategies, the final IHT bill that must be paid by those named as beneficiaries can be greatly reduced.