Inheritance tax: Brits rely on family payments, but problems arise with probate ‘delays’ | Personal Finances | Finance

Inheritance tax is levied on a particular proportion of a person’s estate upon death. It will likely be the responsibility of those who remain to meet the costs of the tax before they can receive an inheritance. But with an inheritance boon being relied on more and more by many, the inheritance tax and its rumors of changes could present a problem.

Paying off debts, investing in a pension and covering children’s college costs are all examples cited by those questioned about inheritance.

The survey interviewed more than 2,000 people across the country.

Andrew Bartle, Founder and Managing Director of Tower Street Finance, commented to Express.co.uk about it.

He said: “We have heard that some people are considering using an inheritance for fun, like a vacation, a new home, or a new car.

“Our research has revealed that a staggering number of Britons rely on a gift from a loved one to cover the cost of the essentials, like paying household bills and / or being able to retire in the future.

Mr Bartle concluded: ‘For those who expected to have over £ 325,000 left, 20% admitted they had no idea anything above that could lead to an inheritance tax invoice. This must be prepaid before any assets can be released. “

As the use of inheritance has increased, Britons may also be concerned about the future of inheritance tax.

A few days away from the Chancellor’s budget, the tax has been presented by experts as a tax that could be subject to significant changes.

In a recent interview with Express.co.uk, Christine Ross, Head of Advice at Handlesbanken Wealth Management, said there may be certain areas in which Mr Sunak chooses to act.

While the rate of the IHT is unlikely to change, there could be changes on the table for donations and allocations.

She said: “If we hadn’t had a pandemic a few people including myself thought a year ago in the budget we would have seen IHT changes. I still think we might see changes to inheritance tax in the future.

“Whether in the current climate the Chancellor really wants to consider something like this is still somewhat uncertain, but a tidy-up could certainly happen. “

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