Inheritance Tax (IHT) now affects millions of people. With the increase in house prices in recent years many more households are now subject to IHT.

People do not have to pay IHT after the death of their partner. But when the surviving spouse dies, IHT is levied at a flat 40 per cent on the estate's assets over and above the threshold, currently £300,000. So, for example, an estate worth £500,000 would have to pay the taxman £80,000.

With good financial advice AND planning ahead, there are a number of ways to reduce your Inheritance Tax liability, such as:-

- Using trusts
- Ensuring you have a suitable will in place
- Making use of all the available allowances and exemptions
- Gifting assets
- Using IHT efficient investments