Inheritance Tax (IHT) and its precursors were originally introduced to ensure that the assets of the most affluent families were re-distributed to fund the state and was only really targeted at those with considerable wealth. However, following the growth of property values over the past 20 years, combined with a fixing of the nil rate band means that more and more families are finding themselves subject to inheritance tax, simply by virtue of the fact that they own property.

For those families that do have assets subject to IHT it is important to consider planning for the tax to ensure that the maximum amount of wealth can be passed down to their successors and beneficiaries. This can be achieved through:

• Lifetime gifts
• Transfers into trust
• Investment into tax advantaged investments
• Restructuring into more efficient structures
• Taking advantage of overseas reliefs for non-domiciles
• Tax efficient will drafting

However, it is vital to ensure that IHT planning is put into place in good time as many of the available reliefs and structures can take between 2-7 years to be effective.