According to Scottish Widows, over five million people may need to start a debt management plan that accommodates the death of a relative due to rising house prices.
“The six per cent rise in property prices means that thousands more people will now face inheritance tax this year compared to 2005,” said Anne Young, tax expert at Scottish Widows.
“Whilst the average household wealth has increased from last year, so too has the amount of liabilities meaning the possibility of an added burden of debt left behind to relatives in the event of a death.”
Rising house prices have already forced many people to go deep into debt to get onto the housing ladder, but now it seems that relatives of ‘final buyers’ as well as first-time-buyers are being hit by the price increases.
Ms Young stated that a debt management plan could save “thousands of pounds”, adding that she was sure that most people would prefer that their relatives, rather than the taxman, got their inheritance.