STEP urges IHT reforms rethink

STEP has urged the government to look again at the upcoming reforms to inheritance tax, with a focus on clarity and fairness.

This organisation for estate planning carried out a survey to find out how people are reacting to the planned reforms. These will see both death benefits and unused pension money become liable for inheritance tax from next April. What the survey by STEP shows is that people are making changes to estate planning, including withdrawing cash from their pension funds.

A total of 83% of the financial advisors and Probate solicitors in North Wales and England that STEP spoke to said this was how their clients had reacted. Three out of every four of them stated they were seeing more clients opt for lifetime gifts, to circumvent potential tax liabilities. Meanwhile 50% of the professionals said clients were revising Wills so that different people inherit pension money.

Emily Deane works for STEP as its government affairs head and technical counsel. She was quoted by Today’s Wills and Probate as saying:

“Without professional advice, the risks of getting it wrong are high and costly. People are potentially jeopardising their later life needs if they withdraw pension funds early, for example, without taking proper advice, or fully understanding the longer-term implications.”

Deane has argued there is still time for the government to make legislative alterations that give people the information they need in full.

If you need guidance on all aspects of estate planning, our team of solicitors in Bangor is there to help. Call Bennett Smith Solicitors now.