By a Protection Specialist at Morrow
Written by
Samantha Joyce · Senior Mortgage Advisor
Published: 5 Jan 2026 · 3 min read
Inheritance tax isn’t exactly a topic that gets people excited. In fact, most of the time, it’s something families only start thinking about when it’s too late, and that’s the real problem.
Having worked in financial protection for years, I’ve seen both sides: families who planned ahead and passed on their wealth smoothly, and those who didn’t, leaving loved ones with a hefty tax bill and a lot of stress at an already difficult time.
With the recent changes and ongoing debates around inheritance tax (IHT), this is a conversation more people should be having, and sooner rather than later.
What’s Changing and Why It Matters
The threshold for inheritance tax, what’s known as the nil-rate band, has been frozen for years, and it’s likely to stay that way for a while. What that means, in real terms, is that more estates are being pulled into the tax net, simply because property values and personal wealth have risen.
It used to be that inheritance tax was something only the wealthy had to worry about. But today, plenty of ordinary families, often with nothing more than a well-earned home and some savings, are finding their estates sitting above the £325,000 threshold (or £500,000 if they include the family home).
When you add in rising house prices and stagnant thresholds, that can mean a 40% tax bill on the value above those limits.
That’s a significant amount of money that could otherwise have been passed to children or grandchildren, and that’s where protection can play a huge role.
How Protection Can Help
Protection isn’t just about life insurance anymore. It’s about planning, for your family, for your legacy, and for the generations that follow.
Certain types of life cover, when written under trust, can help cover the cost of inheritance tax directly, meaning your loved ones aren’t forced to sell assets or property to pay the bill.
For example, a life insurance policy designed to offset an expected IHT liability can provide the funds needed to pay the tax without touching the estate. It’s one of the simplest and most effective ways to protect what you’ve built.
It’s also about giving your family time, time to grieve, to organise, to make decisions, without the pressure of an immediate tax bill hanging over them.
The Cost of Not Having Protection
The cost of doing nothing can be significant.
Imagine spending your life building security for your family, only for 40% of that to go straight to the taxman when you pass. Without planning, that’s exactly what can happen.
And it’s not just about money. It’s about what that means for your children and grandchildren. They may have to sell property to cover the tax. Family homes can end up on the market. What should have been a gift becomes a burden.
It’s an uncomfortable topic, yes, but it’s one worth facing now, while you have options and control.
Why It Matters for the Next Generation
This isn’t just about today’s homeowners. It’s about the next generation too.
With property values higher than ever, many younger people rely on inheritance as part of their financial future, whether that’s helping with their first home, education, or long-term security. Without protection and planning, much of that potential support could disappear in taxes and legal fees.
Protection gives you a way to preserve what you’ve built and pass it on with purpose. It
Final Thoughts
Inheritance tax can feel like a distant problem, but it’s becoming more real for more families every year. The good news is, there are ways to plan for it, and the earlier you do, the more options you’ll have.
At Morrow, our protection advisors help families look beyond today and think about tomorrow, creating strategies that combine cover, trusts, and simple planning to make sure your legacy ends up where you want it to.
Because protection isn’t just about peace of mind, it’s about protecting generations to come.
