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The report found 64 per cent of consumers were unaware of the introduction of the nil-rate band and younger people in general were more likely to be clueless on the subject. Seventy-one per cent of those aged 35-44 had not heard about the changes. However, more than half of those older than 55 were also oblivious to the new laws.

Investors who were surveyed were also unaware how estate planning could significantly reduce their IHT liabilities. Eighty-three per cent stated they were unaware of rules surrounding trusts, while 88 per cent claimed not to know about the tax rules for gifts.

Paul Wright, investment management director at Zurich, stated the best way consumers could safeguard against losing out would be to visit a financial adviser early on to ensure their beneficiaries received cash and assets in a timely and cost-effective manner, should the worst occur.

Mr Wright said: "Planning what will happen to your estate sounds like a depressing thought, but what is even more depressing is what your estate can be subject to if you don't start planning now.

"At best, a lack of knowledge can significantly slow down the distribution of assets. At worst, it can mean assets not reaching those who you would want to receive them."

He added: "We would encourage people to take a more holistic approach to financial planning and seek financial advice to help protect their assets in the long term, as well as making their money work harder today."