Recent research has revealed that less than a quarter of UK adults discuss inheritance within their family group, and less than 17% is aware if they’ll inherit anything at all.
Expectations of what any inheritance might be worth can be as much as 60% less than its actual worth. Whilst a higher than expected inheritance can, in some cases, be a nice surprise, some may be landed with a tax bill that they had not foreseen.
By discussing these matters openly and frankly within a family group, perhaps supplementing that with professional tax advice, proper planning can be put in place, avoiding a hefty tax bill for loved ones. In fact, the earlier you have these discussions with family members, the more options you have. For example, if you gift money seven years before your death, that amount sits outside your estate and is not subject to inheritance tax.
The research also showed around 14% of people were relying on getting a family inheritance to pay off mortgages or other debts, without even knowing how much they are likely to receive. Another good reason for discussing these matters early on.
If you would like to discuss plans for your estate, please do not hesitate to contact Folkes Worton on 01384 376964
Another article that may be of interest to you is: Inheritance Tax Refunds on the Rise
Folkes Worton – Accounting got the Future