According to a recent survey by Canada Life, over two thirds of those whose estates may be liable for inheritance tax (IHT) are unaware of the threshold for the standard nil rate band of £325,000.
More than half of those recently surveyed did not know that all of the following are liable for IHT as part of an estate on death: life insurance policies not held in trust, agricultural land and business assets (which may not always qualify for relief) and any non-exempt gifts in the last seven years.
The Government and Office for Tax Simplification are currently reviewing many areas of the IHT system and some reforms are likely.
Inheritance tax is complex. Families should take the time to understand the main rules and consider how these would apply to their assets on their death.
If you would like to discuss inheritance tax, wills, probate and estate administration, or estate planning generally, please contact our private client team on 01788 539000.