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Advisers call for better IHT planning after £75bn bequeathed in two years

Advisers say Britons need to make better plans for their inheritance after data from the Office for National Statistics found that one in 10 people have inherited £125,000.

The ONS report into inheritance in Britain, published last week, shows a total of £75bn was inherited between 2008 and 2010, with three-quarters going to the wealthiest 20 per cent of people.

A total of 1.6 million adults, or 3.6 per cent of the population, received a bequest valued at £1,000 or more between 2008 and 2010. 

Nearly nine in every 10 inheritances comprised, at least in part, money or savings. 

Property formed part of 19.5 per cent of legacies with personal possessions such as jewellery or collectibles accounting for 12.4 per cent.

Bloomsbury Wealth Management partner Jason Butler says: “It would be much better if people could use their wealth at an earlier stage before their parents or grandparents pop their clogs. 

“It would be nice to see people better advised so they can help their family in a more timely manner when they need it.”

Evolve Financial Planning director James Norton says: “It is not always easy to plan your inheritance because a lot of assets are tied up in property. 

“If you have a lot of wealth outside property then estate planning is easier and it is better for beneficiaries to see the money in their lifetime.”

Almost half of bequests in the period came from a parent or parent-in-law, with 23 per cent coming from grandparents. Just over one in 10 inheritances were received from an uncle or aunt.

One in 20 beneficiaries received assets from a non-relative such as a friend or neighbour.

The inheritance tax threshold is set to increase by 1 per cent in 2015/16, from £325,000 to £329,000.

In the 2010 emergency Bud-get, the Government froze the IHT nil-rate band for four years. 

The increase will be the first under this Government but remains lower than the current rate of inflation.

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