Inheritance tax might not be the most exciting topic to talk about over dinner, but it’s an
important one. The truth is, too many families end up paying more tax than they need to, simply
because they didn’t know the rules or left things too late.
It’s not just about money, either. It’s about peace of mind, knowing that the wealth you’ve
worked hard for will actually reach the people you care about, not the taxman.
At Gemini, we’ve seen how small oversights can snowball into big financial headaches later on.
That’s why we’ve pulled together a practical guide covering 10 of the most common inheritance
tax mistakes, so you can make more informed choices for your family’s future.
Here’s a quick look at a few of them:
1. Underestimating your estate’s value
It’s easy to overlook what counts towards your estate. Alongside property and savings, don’t
forget to include valuables, foreign assets, and, from April 2027, any unspent pension funds.
Getting an accurate picture now helps avoid unexpected tax bills later on.
2. Not having a will (or forgetting to update it)
It sounds basic, but it’s amazing how many people either don’t have a will or haven’t looked at it
for years. If your circumstances change, think marriage, divorce, new grandchildren, your will
should too. Otherwise, the law decides who inherits what, and it might not be what you’d
intended.
3. Overlooking annual allowances
You can give away up to £3,000 a year tax-free. If you didn’t use last year’s allowance, you can
carry it forward to make £6,000. Plus, there are even ways to gift from regular income that are
immediately exempt from inheritance tax. Most people don’t take advantage of these simple,
legal ways to reduce their estate’s value, and that’s where a little planning can go a long way.
4. Gifting assets but keeping the benefit
It’s a classic mistake: gifting your home to your children but continuing to live in it. Unfortunately,
if you still benefit from an asset you’ve “given away,” HMRC may still count it as part of your
estate.
5. Failing to get the right advice
Inheritance tax can be a bit of a maze. Rules change, thresholds move, and what worked five
years ago might not work now. Speaking with a financial planner can help you spot
opportunities, and avoid the traps.
Why this matters now more than ever
With rising property values and frozen tax thresholds, more and more families are being pulled
into the inheritance tax net. Even those who don’t consider themselves “wealthy” could end up
with an unexpected tax bill if their estate isn’t structured properly.
A little forward thinking can make a big difference. And the good news? It’s not about
complicated loopholes or financial jargon, it’s about understanding what you can do now to
protect your loved ones later.
That’s exactly what our latest guide, 10 Common Inheritance Tax Mistakes, is here to help with.
It’s packed with straightforward insights, practical examples, and expert advice to help you plan
with confidence.
Download your free guide today and discover the small changes that could make a big
difference to your family’s financial future.
