Four-in-10 Brits are concerned about paying inheritance tax (IHT), research sponsored by Canada Life as part of an AKG report found.
Yet, 74% haven’t done anything to reduce future IHT liabilities. Only a fifth have taken some action to mitigate a potential tax bill.
Of those, just 7% have taken financial advice; another 7% made gifts to family members; 5% have a life assurance policy in place; 4% set up trusts; and 3% have invested in alternative asset classes.
Worryingly, nearly a quarter (23%) of Brits have given no thought to IHT planning, putting them at risk of higher tax bills, especially now that inheritance tax thresholds are frozen until at least 2026.
Sean Christian, managing director and executive director of wealth at Canada Life, said: “There is clearly a huge opportunity for further education and guidance when it comes to inheritance tax planning. Families have been through intense strain over the last 18 months, with many being faced with difficult discussions and decisions that may have previously been brushed under the carpet.
“Demand for advice will grow, largely driven by societal shift and demographic change but also financial priorities following the pandemic. But, as an industry, we need to be clear how we can best serve these clients today and also the clients of the future in an efficient and scalable way.
“Building relationships with the wider family earlier by having the conversations which span generations will clearly demonstrate both the role and value of advice. The industry should be seen as being on the front foot for intergenerational planning and feeling better equipped to start the conversation.”