Britons 'unaware' of inheritance savings

20/11/2008

Nearly two-thirds (64 per cent) of Britons are unaware to the changes to the inheritance tax (IHT) 'nil rate band', research shows.

The transferable nil rate band was introduced in October 2007 and allows couples to pass on more of their wealth to beneficiaries.

However, while these IHT changes could prove crucial to many families as the recession takes hold, figures from Zurich suggest that many could miss out.

According to the financial services firm, 71 per cent of 35-44-year-olds are unaware of the changes, as are the majority of 45-54-year-olds (65 per cent) and 55-year-olds (52 per cent).

Paul Wright, investment management director at Zurich UK Life, explained that this lack of knowledge could be damaging to families in the future.

He said: "Planning what will happen to your estate sounds like a depressing thought, but what is even more depressing is what your estate can be subject to if you don't start planning now.

"At best, a lack of knowledge can significantly slow down the distribution of assets, at worst it can mean assets not reaching those who you would want to receive them."

Tags; Retirement Money Problems,

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