Will planning 'reduces inheritance tax risks'

Date: 26th October 2009

The tax advantages gained by making a will have been highlighted by a financial website.

Unbiased.co.uk pointed out in new analysis that the amount of inheritance tax paid by a family can be much higher if the deceased person has not planned their estate in this way.

Data from the site revealed that 57 per cent of British adults had yet to make a will - a total which rises to 65 per cent among parents with children aged under 18 years old.

Inheritance tax is currently charged at 40 per cent on all assets of a deceased person's estate worth above £325,000.

However, current rules state that married couples can only automatically inherit a maximum of £250,000 of assets if their partner dies - while unmarried couples have no inheritance rights at all.

Karen Barrett, chief executive of Unbiased.co.uk, added: "If someone dies without a will, assets are distributed according to the rules of intestacy - this could mean assets and money going to people the deceased had not wanted to benefit, meaning that your family could be left to dispute over your estate, be charged a great deal in inheritance tax or your possessions could not go to who you want it to."