Half of Over 55s Failing to Keep Records of Financial Gifts

Why It Matters for IHT

New research from Canada Life highlights a growing problem in UK estate planning: most older adults who give financial gifts aren’t keeping proper records, putting their families at risk of inheritance tax (IHT) complications later.

Key Findings from the Research

• 54% of over‑55s who made a financial gift in the last seven years kept no record at all.
• Only 13% stored records securely (e.g., backed‑up digital storage).
• 15% kept informal notes (phone notes, paper scraps).
• Just 31% knew the exact amount they had gifted.
• 24% had no idea how much they had given away.
• Among those who could estimate, the average total gifted over seven years was £42,056.

Why This Is a Problem?

Executors must complete:

• IHT400 — reporting the full value of the estate
• IHT403 — reporting lifetime gifts made in the seven years before death

Without accurate records, executors may face:

• Delays in probate
• Difficulty completing HMRC forms
• Increased risk of HMRC queries or investigations
• Potential misreporting of gifts, which can lead to unexpected tax bills

Canada Life warns that poor record‑keeping can create avoidable stress and cost for families.

Widespread Misunderstanding of What Counts as a “Gift”

The research also shows major gaps in public understanding:

Many people assume “gifts” only mean cash — but HMRC’s definition is far broader.

Why People Aren’t Keeping Records

Among those who didn’t track their gifts:

• 48% said the gifts weren’t “large enough to worry about”
• 47% didn’t know record‑keeping was necessary

This suggests both behavioural and educational gaps.

Survey Details

• Conducted February (year not specified)
• 2,000 UK adults surveyed
• 998 were aged 55+

Comment: What This Means for You

This research is a gift (pun intended) because it highlights a persistent consumer blind spot:

1. Clients underestimate the importance of record‑keeping

Even modest gifts can become relevant if the donor dies within seven years.

2. Executors carry the burden

Missing records slow down probate and increase the risk of HMRC scrutiny.

3. Education is the low‑hanging fruit

Make sure you review all the content in our Inheritance Tax channe including record keepingl:  Inheritance