In a recent article published by Today’s Wills & Probate, a thought-provoking research study conducted by financial planning firm abrdn sheds light on a critical issue: the lack of inheritance tax (IHT) planning within blended families. This issue could lead to wealth not being passed on as intended. In this article, we will highlight some key findings from the study and explain why it is crucial for families, particularly those in blended situations, to address this issue.
Lack of Communication and Action
The findings published in the article indicate that a lack of action in this area could result in wealth not being passed on as intended. Here are some key statistics:
- Nearly half (47%) of blended families have not updated their wills after significant life events like divorce, remarriage, having children, or becoming a step-parent.
- Over half (51%) of individuals from blended families consider passing on wealth in unconventional family setups to be crucial.
- Many parents in blended families (40%) have differing views on how to pass on their wealth, compared to 30% in conventional families. Shockingly, 14% of blended family members have never discussed this topic with their partner.
- Approximately 21% of those in blended families have yet to discuss their wealth distribution and management with anyone.
- A significant 27% of respondents from blended families didn’t inherit the wealth they expected from their parents, compared to 17% in non-blended families.
Furthermore, according to the report, 30% of individuals in blended families have not discussed their wealth distribution because they believe their inheritance is not substantial enough to require advice. However, the research shows that their average estimated wealth exceeds the inheritance tax threshold (£325,000) – reaching £354,000 on average and even higher in London (£556,999).
The figures highlighted in this study underscore the importance of open communication and proactive estate planning and inheritance tax planning, especially for blended families.
Read the full article: Today’s Wills & Probate – Lack of Communication and Action Poses IHT Risk For Blended Families.
Wills and Inheritance Tax Planning Solicitors
It is essential to seek professional advice to ensure your wealth is passed on as intended.
Our highly experienced Private Client Solicitors at Rose & Rose offer specialist advice and guidance on Wills and Inheritance Tax Planning, and we can help you navigate these complex issues to secure your family’s financial future. We can also help families in Wills and Inheritance disputes, offering advice on contesting or defending a Will.
For further information, please get in touch with a member of our team below.
This blog post is not intended to be taken as advice or acted upon. If you are seeking legal advice, please get in touch with our team of solicitors.