Nearly three quarters of wealthy Brits have been ignoring basic estate planning tools, a report has suggested.

Just 27% of wealthy Brits over the age of 45 have sought professional advice on IHT planning, according to the Canada Life IHT Survey 2016.

The authors of the report claimed the report showed "a widespread failure to look to the future and plan adequately".

Over a quarter (27%) of those aged 45 or over with enough assets to trigger a potential IHT bill said they did not have a will, meaning their wealth could pass to relatives they did not intend to provide for under intestacy rules, the study showed.

Almost one in ten (8%) would not seek advice for inheritance tax planning from anyone.

Whilst the majority (51%), would seek advice from a financial adviser, followed by a solicitor (34%); more than a quarter would rely on the internet or their own research (28%).

The research found that just a fifth of respondents had gifted money to relatives, with over half (51%) saying they don’t see a need.

The survey was conducted among 1,001 UK consumers aged 45 or over with assets exceeding £325,000.

Almost half (46%) said they would never take out life insurance as part of their estate planning. Nearly three quarters (72%) said they didn’t see a need to use life insurance, suggesting a lack of understanding of how this can be a successful estate planning tool and that greater education is needed from professional advisers.

Trusts were the second most unpopular strategy, with 40% saying they had no intention of using them.

Some 19% said setting up a trust was too time consuming or complicated but a significant minority (13%) said they have used them.

Karen Stacey, head of technical services at Canada Life said: “Far too many wealthy people do not view estate planning as important and risk leaving it too late, thereby potentially placing the burden of substantial bills on their loved ones. The lack of understanding about different inheritance tax planning tools and their benefits is a concern, and suggests not enough people are aware of the options for protection and passing on their wealth.

“There is also a perception that planning is too complicated and time consuming, which is not the case. Writing a will is an absolute must, while gifting money is incredibly simple. Even options seen as complicated, such as setting up a trust, can be very simple when consumers know who they want to benefit from their estate and get advice from a professional on how to achieve their objectives.

“There is a strong relationship between the lack of understanding of simple estate planning tools by the wealthy and the lack of take up of financial advice. The low use of even very simple estate planning tools shows the important role financial advisers have to play in educating potential clients on every aspect of the estate planning process.”