Less than a quarter of people are taking action to mitigate Inheritance Tax, suggesting advisers are missing out on a significant business opportunity, claims Zurich.
Research from the insurer reveals around 95% of adults are aware of what IHT is, however only 22% are actively planning to take action to reduce its impact on their estate.
Zurich says although the concept of IHT and the nil rate band is becoming more familiar as house prices have increased, making it an issue for more homeowners, it says the complexity of IHT is making consumers reluctant to put plans in place.
Out of the 2000 respondents interviewed for Zurich by ICM, 21% of adults claimed they are only thinking about planning for IHT, 17% admitted they won’t do anything, while 35% say they are unaware of how the tax will affect them.
Paul Wright, investment management director at Zurich, says while IHT used to be a tax on the very rich, it is now a growing problem for many people with modest estates, and he warns the complexity of the issues mean those looking to protect themselves will have to seek professional help.
As a result Zurich says there is an IHT gap which gives advisers tan opportunity to add value to the client experience by demonstrating their understanding of the issues surrounding IHT and providing a bespoke financial planning solution.
Wright adds: “For advisers who understand the latest rules and regulations, and are up to speed on the various solutions on the market, there is a great opportunity to add real value for existing clients and to increase business by attracting new ones.”
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Paul Bruns and Elaine Parkes
3,000 left to transfer
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From 3 to 10 October