Almost two thirds (59%) of Britons find inheritance tax (IHT) rules confusing, according to new research.
Just 6% of those surveyed by Canada Life described their understanding of IHT rules as very clear.
Gifting rules were misunderstood, with one in 10 incorrectly thinking all gifts sit outside of IHT calculations.
The majority (74%) did not know the details of gifting allowances and just 15% felt confident about how much they can gift.
Over half (57%) of those surveyed were either not aware of the seven-year rule on gifts or do not know how it works.
Previous research from Canada Life found that the average amount gifted by over-55s in the last seven years was £42,056.
The Government has made several recent changes to IHT rules in last year’s Budget, including IHT being set to apply to unused pensions from April 2027 and extending the freeze to the Nil Rate Band and Residence Nil Rate Band to April 2031.
Using IHT allowances to transfer wealth has been popular since the introduction of the Pension Freedoms in 2015.
The Government yielded to complaints about some aspects of its IHT reforms in December by increasing the relief threshold for farms and businesses from £1m to £2.5m from April 2026.
Separate research from Scottish Widows has found that financial advisers are using the confusion around changes to IHT rules to bring in new clients.
Nearly half (48%) of Financial Planners and adviser say they see the tax change as an opportunity to initiate earlier family conversations around intergenerational wealth planning.
The research found that 3 in 5 advisers (57%) believe clients are uncertain about pensions being subject to IHT from April 2027.
• Canada Life surveyed 2,000 UK adults between 17 and 20 February.