NI consumers 'need more advice on IHT'

Most independent financial advisors believe that their clients do not understand the full effects of inheritance tax (IHT) on their estates, according to a Close Investments survey.

In a survey of 196 independent financial advisors questioned during February 2008 84 per cent were found to believe that their clients do not understand the implications of IHT and only 54 per cent of clients seek advice on the whole of their estate, rather than just their homes.

Solicitors in Northern Ireland, accountants and financial advisors should be working together to provide an advice service for clients, according to the investment fund provider.

Assistant director for specialist sales at the firm Robert Meyer described the results as "not particularly surprising".

However, the number of people liable to pay inheritance tax has increased in
the UK and so the issue needs to be more widely discussed, he said.

"The combination of IFAs, Solicitors and Accountants working together to offer clients the best possible guidance and advice on inheritance tax can only be a winning one," he added.

IHT thresholds rose from 40 per cent on estates worth over £300,000 to a £320,000 IHT-free tax allowance in Alastair Darling's 2008 budget.

Contact us for legal advice