Over 90% of advisers believe they are going to spend more time advising on Inheritance Tax planning in the future.
A survey of around 250 advisers, carried out by Zurich, reveals 50% currently spend less than 10% of their time advising clients on IHT, however 91% of respondents believe they will be spending more time on IHT planning in the future.
In addition the research shows despite the changes made in the Finance Act 2006, 65% of IFAs consider themselves to be knowledgeable about IHT planning, although they admit around 71% of their clients don’t understand how it might affect them.
Zurich says the result of consumer research it conducted in mid-2006 reveal while 95% are aware of IHT, less than a quarter are actually taking any action to protect themselves against it.
As result Zurich says with 4.2 million properties expected to be above the IHT threshold by 2002, IFAs have a significant opportunity to play a vital role in educating their clients about the issue.
Paul Wright, investment management director at Zurich, says its clear advisers are thinking more about IHT planning as its IHT roadshows proved very popular, with more than 1,000 IFAs attending the seminars across the country.
As a result he suggests advisers should look carefully at the range of trust solutions designed by providers to manage any potential IHT liability, as he warns a “significant amount of the £3.6bn the government is forecast to receive in this financial year could be saved if clients took action to plan for any potential IHT liability”.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7034 2681 or email [email protected]IFAonline
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