61% of high net worth individuals (HNWs) with assets over £250,000 plan to give away the majority of their assets during their lifetime, the Saltus Wealth Index has revealed.
The study revealed measures, such as gifting assets, passing on homes, and leaving money to charity, were commonly employed to mitigate Inheritance Tax (IHT).
In 63% of cases estates were set to pass to spouses, exempting them from IHT.
During ongoing speculation surrounding potential IHT reforms, Gianpaolo Mantini, partner and chartered financial planner at Saltus, said that it currently does not apply to most estates.
Mantini suggested that funds aimed at eliminating IHT could be better used to encourage savings and investment.
He said: “Inheritance Tax does not currently apply to the vast majority of estates, and funds from the cost of removing it entirely could be put to better use in other ways to encourage increased savings and investment.
“While the principle of reducing the impact of IHT is one to be welcomed, in an economic environment where the Government faces tough choices on spending there are other tax-based measures that would have a greater impact in incentivising British people across a wide range of incomes to increase their savings, in turn supporting businesses and the long-term strength of the UK economy.”
