Investec Wealth & Investment has highlighted the importance of talking about inheritance so families can minimise the impact IHT will have on their assets.

Families in the UK are increasingly raising the topic of inheritance, according to research by Investec Wealth & Investment, which shows that 44 per cent of adults have never discussed what they stand to inherit financially with their parents, down from 74 per cent in 2012.

The survey, conducted between 13 and 16 May 2016, took responses from 1,039 people in the UK aged over 18.

When asked why they had not raised the issue, around a quarter said they were concerned they would appear "money-grabbing" and think their parents would be upset if they raised it; two-fifths did not want to think about their parents passing away. 

A fifth said they would not talk to their parents about inheritance under any circumstances. Meanwhile, 30 per cent said they had a good idea about what – if anything – they will inherit, with a quarter saying they had no idea at all.

The findings coincide with a report by private client law firm Wilsons, which said the UK's HM Revenue & Customs collected a record £4.7 billion ($6 billion) in income from inheritance tax in the year ending 30 June 2016.

“It’s good to see that more people are discussing the ‘taboo’ issue of inheritance with their parents. While it is a tough thing to do, it can be very important to broach the subject at a sufficiently early stage so that measures can be taken to reduce the impact inheritance tax (IHT) can have on a family’s assets,” said Chris Aitken, head of financial planning at Investec Wealth & Investment.

“Rising property values, particularly in London and the South East, are forcing more families into the inheritance tax net. This can reduce assets worth over £325,000, including property, by 40 per cent. Fast-changing legislation means keeping abreast of inheritance and estate tax planning has become more challenging.”