Inheritance Tax is a fraught subject, covered by most of the national and local media, and a subject that gives people sleepless nights in their later years. Given that, just how big is the "Inheritance Tax Problem" and why do we worry so much about it?
At present it is estimated that more than four million people in Britain are exposed to, and therefore potentially liable for Inheritance Tax (IHT). HM Revenue & Customs have released figures suggesting that the average IHT bill is around £60,000 per estate and that IHT receipts increased by 14% in 2010/11. When this is looked at in the context of rising inflation against a Nil Rate Band (the amount of assets you can have before IHT becomes payable) currently frozen at £325,000 until at least 2015/16, one can see that IHT will only prove to be a growing problem for the general population.
If this is the case, why are so many people reticent to do anything about their exposure to IHT. The reasons can be many any varied, ranging from not wanting to face one's mortality though to simply not being bothered, or to quote a former Chancellor of the Exchequer "Inheritance Tax is a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue".
There are however some more serious and valid reasons which generally centre around the preception that advice is expensive, and/or complicated, or that you're unsure of what you can reasonably afford to give away, or are perhaps concerned about losing control of your assets. It is these areas where getting proper, qualified advice is invaluable, as it certainly isn't as expensive as people perceive, and if you are getting good advice from specialists in the subject there is no reason why it should be complicated either.
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