Les Cameron, tax expert at Prudential, said:
“Inheritance tax planning will continue to be a booming area of financial advice. Government estimates show the trend of rising IHT receipts has continued. We’ve breached £5bn for the first time and they will hit £6.5bn in 2022and this should only increase consumers’ demand for inheritance tax planning. We should also remember the £3,000 gifting allowance has been frozen for over three decades so the earlier you start using it the more wealth you can pass on to your family.
“One of the key things when IHT planning and gifting is ensuring the right blend of access and control you need on the money. If you’re happy that you’ll never need the money again, and you’re happy the person your gifting too can spend it as and when they wish, then it’s a simple as a bank transfer or a cheque. But if you may need access or want to control how and when the money is spent then you may want to look at some specialist investments or using different types of trust arrangement.”