An annual survey conducted by Canada Life has found many Brits poorly positioned to pass their wealth on.
There is worrying evidence that many people that own substantial estates are not getting the expert advice they need to manage money. Some are wilfully ignoring estate management and paying more tax than they necessarily have to. Currently only 27% of those with assets over £325,000 and who are aged over 45 have sought professional advice for planning ahead.
Passing money on after death is an area people in general have not prepared for. 27% of wealthy individuals have not even written a will. Just 1 in 5 people have thought ahead enough to gift money whilst still alive. The inheritance tax that will be imposed on those who receive the money will be far higher than if they had prepared and sought proper advice.
There is concern over the lack of awareness of the importance of professional financial advice when it comes to estate planning. Worrying responses were received in the survey such as 46% of those questioned saying they would never take out life insurance.
Misconceptions Preventing People From Seeking Advice
After life insurance the second most popular method of passing on money was to set up a fund. However, 40% said they did not intend to utilise them themselves. A significant number (19%) gave the reason that doing so seemed too time consuming and difficult. In fact the process is simple and highly worthwhile and with so many unaware of this there have been those that question the financial literacy of the population.
The survey indicates that seeking professional advice would save a great number of people from unnecessary payments of inheritance tax. Although it is an individual’s right to decide what they do with their finances the current situation is set to see the beneficiaries pay unneeded charges.
Debbie Day.
Mobile : 07704 311021 Felixstowe Office : 01394 775711
deb.day@hoskinfinancial.co.uk www.debbiedayifa.co.uk
THIS BLOG PROVIDES INFORMATION, IT IS NOT ADVICE. ANY OPINIONS ARE GIVEN IN GOOD FAITH AND MAY BE SUBJECT TO CHANGE WITHOUT NOTICE. OPINIONS AND INFORMATION INCLUDED WITHIN THIS EMAIL DO NOT CONSTITUTE ADVICE. (IF YOU REQUIRE PERSONAL ADVICE BASED ON YOUR CIRCUMSTANCES, PLEASE CONTACT US AT HOSKIN FINANCIAL
There is worrying evidence that many people that own substantial estates are not getting the expert advice they need to manage money. Some are wilfully ignoring estate management and paying more tax than they necessarily have to. Currently only 27% of those with assets over £325,000 and who are aged over 45 have sought professional advice for planning ahead.
Passing money on after death is an area people in general have not prepared for. 27% of wealthy individuals have not even written a will. Just 1 in 5 people have thought ahead enough to gift money whilst still alive. The inheritance tax that will be imposed on those who receive the money will be far higher than if they had prepared and sought proper advice.
There is concern over the lack of awareness of the importance of professional financial advice when it comes to estate planning. Worrying responses were received in the survey such as 46% of those questioned saying they would never take out life insurance.
Misconceptions Preventing People From Seeking Advice
After life insurance the second most popular method of passing on money was to set up a fund. However, 40% said they did not intend to utilise them themselves. A significant number (19%) gave the reason that doing so seemed too time consuming and difficult. In fact the process is simple and highly worthwhile and with so many unaware of this there have been those that question the financial literacy of the population.
The survey indicates that seeking professional advice would save a great number of people from unnecessary payments of inheritance tax. Although it is an individual’s right to decide what they do with their finances the current situation is set to see the beneficiaries pay unneeded charges.
Debbie Day.
Mobile : 07704 311021 Felixstowe Office : 01394 775711
deb.day@hoskinfinancial.co.uk www.debbiedayifa.co.uk
THIS BLOG PROVIDES INFORMATION, IT IS NOT ADVICE. ANY OPINIONS ARE GIVEN IN GOOD FAITH AND MAY BE SUBJECT TO CHANGE WITHOUT NOTICE. OPINIONS AND INFORMATION INCLUDED WITHIN THIS EMAIL DO NOT CONSTITUTE ADVICE. (IF YOU REQUIRE PERSONAL ADVICE BASED ON YOUR CIRCUMSTANCES, PLEASE CONTACT US AT HOSKIN FINANCIAL
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