Inheritance Beneficiaries Double

Inheritance Beneficiaries Double

According to a new report by the International Longevity Centre (ILC), about 2.5 per cent of the population receives an inheritance each year and the average amount of inheritance received has doubled in less than a decade.  The average mean amount received has increased from about £21,000 in 97-98 to about £44,000 in 03-04.  Professionals and managers continue to receive the largest inheritances.

Our view

The current inheritance tax threshold stands at £312,000.  In Alistair Darling’s first pre-budget report last year the chancellor outlined plans to increase the Inheritance Tax (IHT) threshold to £624,000 for couples.  We suggest this is a hollow promise because with a simple Will trust for a married or civil partnership, this doubling of the allowance was easily achieved.  In fact, we still suggest that people do a Will trust to protect your assets from means testing for care fees.

The Conservative Party has pledged to increase the threshold to £1m.  This should mean an even greater number of people have their assets protected from his disgusting tax.

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