IHT planning 'is a must'

Friday, December 4th 2009

About two-thirds of over-55s in the UK plan to leave a collective £2.15 trillion worth of money and assets to their loved ones through their wills.

This is according to new research from Aviva, which shows that despite these figures just 41 per cent of offspring expect to receive an inheritance.

Many children want their parents to use their money to improve their own lives rather than save up to leave an inheritance.

Brian Bussell, director of pensions for Aviva's UK Life department, said that older people should heed their offspring's advice and make the most of their retirement rather than attempt to save up an inheritance.

However, if they do have enough left over to leave their children something even after funding their retirement, they should "seek inheritance tax (IHT) planning to make sure they can pass on the maximum amount to their families", he commented.

Recent figures from WAY Group indicated that IHT enquiries are on the rise due to rising house prices and share and pension fund values, as well as speculation over how IHT will change in the upcoming pre-Budget report.