‘I’m a finance expert – slash your inheritance tax bill with one simple move’

Financial influencer Damien Jordan, a YouTuber featured on the Damien Talks Money channel, has urged families to do one thing: to manage any inheritance tax bill they may have in the future.

Jordan, who has 160,000 subscribers, said families might want to consider setting up a trust to shelter their money from inheritance tax.

He said: “Talking about money has been called Britain’s last taboo. It’s claimed we would rather talk about sex to a stranger than our salary. I know talking about inheritance with loved ones can feel a bit insensitive, slightly morbid, even I don’t like you wishing them dead, in a way.”

Jordan claimed that between now and 2045, $90 trillion (£70 billion) will move between generations globally.

“It’s the largest wealth transfer in history, and it promises, really, to reshape the global economy. It threatens to entrench inequality, and if we’re not careful, it’s going to rip families apart. Don’t you think that that is worth talking about.”

He said the percentage of individuals expecting to receive an inheritance rose from 72% of those born in the 1960s to 81% of those born in the 1980s, and one in seven young adults expect to inherit money before they’re 35.

He said while many younger relatives were waiting to die, their older parents and grandparents often had their wealth ‘tied up in property’ which would need to be sold for care.

He added: “There’s a whole generation here that are relying on this money to fulfill their financial goals, potentially unaware that their parents might just need that money to live. I actually think there’s parents out there that haven’t considered this reality either. I’ve seen one case recently, and it’s the first time I’ve seen it creep in where parents have paid children overpaid because they’re in need, left themselves in need themselves later on.”

Jordan also said arguments about inheritances were all too common. He said: “Until recently, I was part of the 51% of people in the UK who didn’t a will.”

“You know [it’s]  one of the best things that I’ve ever done in terms of my own happiness, because I now know that if I die, the people I love know how much I love them, I would encourage you to write a will. They don’t cost that much to do, and if you feel it’s appropriate, I would also encourage you to sit down and talk to the people in your will about why you’re making the decisions that you are.

“Many of the disputes post-death are born from the fact that the one person with all the answers is already gone.”

Jordan then went on to talk about inheritance tax.

He said: “The proportion of deaths resulting in an inheritance tax bill is set to grow to over 7% by 2032 33 as of February 2025. The current inheritance tax rules are as follows: you can pass on £325,000 without tax. This is called the nil rate band. But you also get a nil rate band of 175,000 pounds on your main residence when it’s passed to a direct descendant.”

Jordan said the Institute of Fiscal Studies had released data showing that families with wealth over £5 million often paid less inheritance tax than families with smaller estates.

He said: “Why? Because estates of this size have the resources to avoid the tax altogether. They the use of trusts, gifts and ownership of things like agricultural land, as well as a load of other structures that you know I won’t be aware of.

“The extremely well to use these, these tools, to basically reduce their tax burden or just completely avoid it altogether.

He urged families to consider setting up trusts if they could afford it.

He said: “You and your loved ones can benefit from the same structures as to the rich. Potentially, you can give assets to children. You get to bask in the glory of being an absolute legend of doing so, and it prompts this conversation around inheritance. Just make sure you don’t die within seven years, and also make sure you don’t give too much.

“Also this trust thing, I’m not completely clued up on this, so please seek the advice of a good solicitor, but I see it as a great way to kind of raise this discussion again.”

“Instead of discussing them from the perspective of death, why not talk about making them immortal? So you know, for me, I’m going to open a family trust.

“Speaking to your family about legacy is a lot more palatable than talking to them about death and taxes. When we hear the words great wealth transfer, the expectation is that trillions will float down into the hands of every millennial, but the reality is likely going to be very different. An inheritance is many things. By its core, it’s an act of love, and as such, speaking about it, should be seen as a positive thing.”