Billions wasted through poor IHT planning

Consumers in Northern Ireland and the rest of the UK are wasting billions of pounds on unnecessary inheritance tax (IHT) payments, new figures from consumer website show.

Some 2.2 billion pounds is being wasted on the so-called 'death tax', which the website says is responsible for more unnecessary payments than any other levy.

According to the annual research, the amount of money wasted through poor IHT planning has jumped by 16 per cent or 314 million pounds compared to 2008 and this wastage is set to continue in light of declining house values.

This is because many properties are still valued above the current IHT nil rate threshold of £350,000 and the organisation is urging consumers to be proactive and stop the avoidable payments.

Consumers are also losing out by including the proceeds of life assurance policies in their personal estates, which "if written in trust, would not be subject to inheritance tax", the website stated.

Lenore Rice, head of the family and estates deparment of Wilson Nesbitt Solicitors, commented that "the price of an IHT efficient will coupled with a regular review of your assets could help minimise IHT if not eliminate IHT on your estate."
Contact us for legal advice