THE GREAT TAX SQUEEZE

The latest budget freeze on the IHT nil rate band and residence nil rate band thresholds, means more families will be impacted as property values rise.  In addition changes to tax relief on business assets and adjustments to pension rules will see more estates facing unexpected tax liabilities.

With so many unaware of the options available when it comes to planning to mitigate IHT failing to plan ahead could result in avoidable financial damage.

New research from The Association of Lifetime Lawyers, a membership body of expert lawyers from across the UK, reveals a sharp increase in concerns around IHT.   A staggering 80% of their lawyers have reported a surge in IHT-related enquiries over the last six months alone, with interest spiking further (68%) following the latest budget.

More than three-quarters (77%) have observed a growing trend of clients exploring the option of gifting assets during their lifetime to reduce the IHT bill their loved ones might have to pay. Despite this rising demand, 66% of lawyers believe many people remain unaware of their options for IHT planning.

Maralyn Hutchinson info@KMLAwyers.online stresses the urgency of acting before it is too late: “The landscape of IHT is shifting rapidly, and many people seem uncertain what to do.  The complexity of changes has caused confusion among families.  Discussing finances and estate planning may feel challenging, but being open about it is key to ensuring the right arrangements for your future.”

Maralyn adds: “One significant change will take effect from April 2027 when most unused pension pots and lump sum death benefits will become part of a person’s estate for IHT purposes, potentially pushing many more people over the IHT threshold.” 

Seeking professional advice from a specialist solicitor, such as an Accredited Lifetime Lawyer, can provide peace of mind and a clear strategy to navigate these complex changes with confidence.

TAKE TIME OUT TO PLAN