Taxpayers waste a total of £1.3 a year due to poor planning before death. The number one area of tax wastage is through people failing to claim child benefits, child tax benefits, working tax credits and pensions credits, according to website unbiased.co.uk.
Chief executive of the website Karen Barrett said: ‘Vast sums are being paid unnecessarily in inheritance tax every year because the deceased had not made adequate provision.
Such situations can only bring additional unwelcome stress for the deceased’s family at an already difficult time, as the tax must be paid before the estate can be released and any inheritances can be passed on.
‘With the IHT threshold frozen for another three years, it is important to make sure your financial affairs are in order to protect your family and loved ones after you have gone.’
Since you never know when you’re going to go, the message is clear: get on it!