One in four advisers believe their clients fully comprehend the implications of inheritance tax, while 95 per cent say greater education and information is needed.
Research by Close Investments shows more than half (54 per cent) of clients seek IHT guidance on all their assets, not just their homes. But 84 per cent of advisers say their clients do not understand its tax implications.
Close Investments specialist sales assistant director Robert Meyer says the survey shows “ignorance and confusion” is still prevalent in the UK today. He says advice until now has mainly come from private wealth managers, specialist tax advisers and specialist solicitors.
He says: “With the explosion in the numbers of people affected by inheritance tax there is a need for broader advice and new avenues of enquiry.”
The research, conducted with 200 advisers in February this year, also shows 100 per cent of advisers see inheritance tax as a key concern for clients.
Meyer adds: “The challenge is for us in the financial and professional advice community to make sure our clients understand just how much will disappear into government coffers at their deaths and how following the advice available and taking often simple steps can benefit their families greatly.”