The survey reveals that IHT is a key concern for investors and yet just 26 per cent of IFAs believe that they fully comprehend the implications of the tax.

With an increasing number of people finding that the total value of their assets brings them within the scope of IHT, 95 per cent of IFAs agree that more education or information is needed in the UK.

Robert Meyer, assistant director of specialist sales at Close Investments, says, ‘There is still ignorance and confusion regarding inheritance tax in the UK. The housing boom in Britain has created an asset-rich population heavily weighted towards baby boomers who are still waking up to the fact that they are sitting on sufficient personal assets… IHT will affect them and their beneficiaries.

‘Traditionally, advice on IHT has sat with private wealth managers, specialist tax advisers and experienced specialist solicitors. With the explosion in the numbers of people affected by inheritance tax there is a need for broader advice and new avenues of enquiries.’

According to Meyer, the trust fund approach is not necessarily appropriate for someone whose greatest asset is their four bedroom detached house in Surrey.

He says, ‘After a period of sustained economic growth, the government seems content to allow the nil-rate band increases to trail behind the increasing value of individuals’ assets. The challenge is for us in the financial and professional advice community to make sure our clients understand just how much will disappear into government coffers at their death and how following the advice available and taking, often simple, steps can benefit their families greatly.’