Why doing nothing about Inheritance Tax could cost your family everything
Let’s talk about Britain’s most resented tax — the one that hits after you’ve passed on, but somehow still manages to cause arguments among the living.
This year alone, HMRC is set to collect over £8 billion in Inheritance Tax (IHT). Yes, billion — with a “B”. And that figure is only heading one way. By 2030, it’s forecast to hit a staggering £14 billion. Why? Because the government has chosen to freeze IHT thresholds until 2030… while property prices and personal wealth continue to rise. A double whammy for families who never thought they’d be caught in the IHT net.
And if that wasn’t enough, from April 2027 onwards, even more of your wealth — including pensions — will be pulled into your taxable estate.
“I hate IHT” – Everyone
And yet… so many people do absolutely nothing about it. We hear it all the time: “I don’t want the government taking 40% of what I’ve worked for.” “I want to make sure my family are looked after.” “I hate Inheritance Tax!” But when it comes to action? Very few people do anything about it.
In our experience, most people rely on outdated advice or hearsay like: “If I gift it and survive 7 years, it’s safe.” Or “My kids can sort it out after I’m gone.” And “I don’t think it applies to me.”
The reality? HMRC is actively investigating more failed gifting arrangements — especially where the person making the gift never truly let go of the asset (what HMRC calls a GROB – Gift with Reservation of Benefit). Thinking about giving your house away but still living in it rent-free — that won’t work. And with house prices soaring, more ‘average’ families are falling into the IHT trap without realising it.
The Real Problem: When the Taxman Comes Knocking
Here’s a question we ask a lot: If you died tomorrow, how would your family pay the IHT?
Because here’s the kicker — Inheritance Tax is due before probate can be granted. That means the executors must find the money before they can even access the estate. It’s a backwards system, and it leaves families scrambling to take out loans, sell assets, or beg the bank for help — all during one of the most difficult times of their lives.
The Good News: There Are Solutions
The good news is you don’t need to hand everything away or hope to live another 7 years. There are smart, practical ways to reduce – and in many cases eliminate Inheritance Tax with the correct planning.
At Foresight Wills, in partnership with Insight Financial Associates, we help families across the UK structure their estates to make sure the right people get the right money at the right time — without giving nearly half of it to HMRC.
Some of the planning strategies we use include:
- Investors Living Trusts – access to capital & assets without a need for probate to help pay any IHT.
- Common Intention Trusts – particularly helpful where property and gifting intentions were never formalised or registered with HMRC.
- Gifts from Disposable Income – unlimited gifting with no 7 years rule – allowances HMRC wants you to take advantage of.
- BPR-qualifying Investments – remove up to £1 million from your taxable estate within 2 years while still retaining access to capital & income.
- Maximising NRB & RNRB IHT Allowances – because correctly structured Wills can save hundreds of thousands of pounds on allowances most people believe they cannot qualify for.
Final Thought: Don’t Leave it Too Late
IHT isn’t just for the rich anymore. It’s affecting normal families with decent homes and modest savings. The worst thing you can do? Nothing.
We offer Inheritance Tax Reviews that look at your full estate and show you clearly where you stand — and what your options are. There’s no obligation, no pressure, and no jargon, it’s all part of your ongoing service as a Foresight client. If you genuinely want to leave more behind for your family — and less for the taxman — now is the time to act.
Foresight Wills, working alongside Insight Financial Associates, are here to help you plan properly – so that your legacy goes where it should.