IHT worries highlight need for advice – Openwork

Over half (52%) of over-45s are concerned about landing their families with an inheritance tax (IHT) bill because they have failed to take action to ease the pressure on relatives, according to new research from Openwork.

A nationwide study, conducted among 1,151 adults in the UK during March, suggested that despite rising concern about potential IHT bills, homeowners are unsure about the appropriate action to take.

A separate Openwork study, conducted among 115 financial advisers during March, also indicated that more clients are coming to advisers with questions aboutIHT – with 37% of advisers across the country having seen an increase in demand for general IHT advice in the past year.

Openwork suggested its research showed confusion about the best ways to minimise potential IHT bills among homeowners aged over-45. Just 15% said they have taken specific advice on minimising their bills, rising to 17% among the over-65s.

Around one in eight (12%) adults revealed they have made gifts to family members specifically to reduce any possible IHT bill, with 17% of over-65s making payments to reduce their liability. Another 5% said they have set up trusts to benefit their families.

Openwork wealth and platform director, Mike Morrow, commented: “Many people are still anxious about IHT, which can often seem unfair when you are looking to pass your estate to your children and grandchildren, to ensure their long-term financial security.

“The growth in UK house prices over the last 30 years means many more people on middle incomes could face unexpected and large tax bills if they try to pass on their home to their children or grandchildren.

“The upcoming Autumn Budget is expected to include changes to IHT rules which could look to capture even more wealth, increasing concerns among people. It is therefore more important than ever that individuals seek support from a qualified financial adviser.

“However, with only one-third having taken action, it is evident that the profession needs to much more to promote its benefits to people so that they know what support is available.”

    Share Story:

Recent Stories

Deep Neural Networks for FX Prediction
Adam Cadle speaks to Richard Turner Head of Research and Mike Emambakhsh, Ph.D. Senior Research Scientist at Mesirow Currency Management about their work with Machine Learning, specifically Deep neural networks for FX prediction.


Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.