More than half of older Brits could be leaving their families with an inheritance tax headache, simply because of one common oversight. New research suggests many people are being generous with financial gifts but failing to keep track of what they have given away. That could cause complications for loved ones later on.

According to new data from Canada Life, 54% of over-55s who have given a financial gift in the last seven years have not kept any record of it. Just 13% said they stored details of their gifts in a secure, backed-up place such as a formal spreadsheet, accounting software or secure notes app. A further 15% wrote down what they had gifted in an informal place, such as a paper notepad or personal phone note.

That means a significant proportion are relying on memory, or nothing at all. The issue matters because HMRC requires executors to complete form IHT400 to report the full value of an estate after someone dies.

Form IHT403 must also be submitted to disclose lifetime gifts, such as cash, property or shares, made in the seven years before death, and in some cases earlier.

Without clear records, executors may struggle to complete the forms accurately. That can lead to delays in probate or queries from HMRC at what is already a difficult time for families.

The research also found that many people have lost track of how much they have given. Less than a third (31%) of over 55s who have gifted money in the last seven years know the exact amount they have handed over. While 45% said they could give a rough estimate, nearly a quarter (24%) admitted they had no idea.

Among those who could provide at least an estimate, the average amount gifted over the past seven years was £42,056, far higher than the £3,000 annual gifting allowance. In fact, 21% said they had given away £50,000 or more.

When asked why they did not keep a record, 48% said they did not think the gifts were large enough to worry about. A similar proportion (47%) said they did not know it was necessary, while 21% said they were relying on memory.

There also appears to be confusion over what counts as a financial gift for inheritance tax purposes. Three in five (59%) over 55s did not realise that giving furniture, jewellery or antiques counts as a financial gift.

More than half (55%) did not know that gifting stocks and shares listed on the London Stock Exchange also qualifies, and 32% were unaware that giving away a house, land or buildings is treated in the same way.

Liz Hardie, tax, trusts and estate planning expert at Canada Life, said: "Gifting to loved ones can be hugely positive - not only can it help reduce an inheritance tax liability, but it can also help loved ones onto the property ladder, support grandchildren through education, or simply make life a bit easier for friends and family.

"However, if you do not keep a clear record of what you have given and when, you risk creating problems for your family later on.

"Poor records can mean your executors struggle to complete the paperwork once you pass away, and allowances and exemptions may be missed because they cannot be evidenced to HMRC. This can delay the grant of probate and, therefore, delay payments to beneficiaries.

"In the worst cases, if the will has not been drafted in the right way, these delays can leave a surviving spouse or civil partner without timely access to the funds they were expecting to live on.

"Reviewing HMRC's IHT 400 and IHT 403 forms will help you understand the level of detail required, as your executors will need to fill in these forms upon your death. Key information needed is the amount given, who you made the gift to, the date you gave it, and your relationship to that person. It should be filed in a backed-up place that your executor knows the location of.

"Inheritance tax can be a complex area, and seeking financial advice is essential to help you review your financial planning strategy and avoid any added stress for your loved ones later down the line."