News & Insights
Inheritance Tax Planning Crucial for Millennials to avoid “tax grab”
Latimer Hinks Solicitors in Darlington is urging the parents of millennials to consider estate planning to prevent their children becoming the victims of an inheritance tax grab.
The firm has previously raised concerns about the likelihood of many reliefs which are currently in place being withdrawn or reformed in the near future in order to address the economic deficit caused by the COVID crisis. These changes could potentially have a devastating impact on millennials.
Those born between approximately 1980 and 1996 stand to inherit substantially more than their Generation X counterparts, with one quarter set to inherit more than £300,000 and one in 10 set to inherit more than £500,000.
However, millennials are likely to be more reliant on inherited wealth due to a weak growth in earnings and will potentially be hit harder by inheritance taxes if the current reliefs and thresholds change.
The firm is urging its clients, particularly those who are making wills and leaving inheritance to their millennial children and grandchildren, to make stringent plans to avoid their loved ones being hit with a large tax bill.
Elizabeth Armstrong, managing director at Latimer Hinks Solicitors, said: “Due to weak growth in earnings for those who joined the workforce in the early 2000s, millennials are going to be far more dependent on inheritance than previous generations.
“We are urging parents of millennials to make plans now and to consider what gifts they could give or action they could take to ensure their children don’t find themselves hit with a substantial tax bill when the time comes.
“Estate planning can be incredibly complex and nuanced because of the legalities involved as well as family dynamics, which can become fraught when the issue of money is raised. It can be helpful to have a completely independent party mediating and overseeing discussions.
“It is also beneficial to speak to a solicitor who is a specialist in estate planning and holds a STEP qualification, because they are proven to hold the highest professional standards for wills, trusts and probate, so you know your affairs will be handled correctly. My team has ten STEP qualified solicitors who are supporting clients every day to have peace of mind for the future.”
