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OPINION

Where do you stand on inheritance?

Where do you stand on inheritance?
June 9, 2017
Where do you stand on inheritance?

Why do we feel so strongly about making sure our families inherit? Partly it's that primal instinct: it's mine, therefore it's my children's and because in life we share our homes and money with our nearest and dearest, when we've gone we want things to stay the same. Partly, too, it's because giving/leaving our children money that isn't income from a job will improve their financial security - it's a chance to pay off a mortgage or university fees or to move up or get on the housing ladder. In fact, soaring house prices are one of the reasons why inheritance tax has become such a source of debate and distress (and for others, disgust). As family homes have increased in value, parents worry they will not be able to pass it down intact, hence the additional shelter for property introduced by George Osborne. Even Labour helped families by allowing, 10 years ago, the transfer of unused nil-rate bands between spouses.

Laws that fight people's natural sense of justice never work (almost 60 per cent of people are flatly opposed to inheritance tax according to a YouGov poll) and so a truce has been patched into place for wealth transfers: the state permits a certain amount of wealth to be passed on tax-free, and after that an unlimited amount to be passed on minus 40 per cent tax.

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