Where there’s a will, there’s a war, and how making one can protect your loved ones against inheritance tax
Most wealthy Britons prefer not to share their inheritance plans with their families, according to a new study.
In a survey commissioned by Brown Shipley, a Quintet Private Bank, 54 per cent of respondents said they had not spoken to loved ones about plans to pass on wealth.
More than two-fifths, 42 per cent, had not yet made a will, though 17 per cent were planning to do so in 2023.
The report indicated that large numbers of wealthy people are now consulting financial advisers professionals, with almost a third, or 32 per cent, saying they had reviewed their plans to make sure money was passed on in a tax-efficient way.
The current tax-free inheritance allowance is £325,000, while a £175,000 nil-rate band applies to homes passed to children or grandchildren. However, gifts made in the last seven years of someone’s life are exempt.
Brown Shipley’s annual wealth report found that nearly two thirds of respondents who lived in homes valued at £500,000 or more owned their properties outright.
And one in five six-figure earners said their wealth came from running their own business.
Rebecca Williams, head of wealth planning at Brown Shipley, a Quintet Private Bank, said: “Speaking to loved ones about estate planning and your will can be uncomfortable, but it can help provide clarity and prove beneficial to long-term family dynamics.
“Those wealthy individuals who put off making a will may find their wealth isn’t passed on in the way they wish, or that their loved ones might have expected. There are decisions that individuals can make now that can have a positive impact on how loved ones will benefit – in the near term and over time.
“It’s encouraging that many people are taking action to pass their wealth on efficiently, and also consulting a professional adviser to do so. This can help ensure wider plans and timing for passing on wealth are taken in account, while also ensuring that the most tax-efficient structures are in place.”