As with all Taxes, this drives deep into the heart of peoples established wealth, and often the case that all of taxable assets have been the result of sheer hard work throughout the individual’s lifetime.

Individuals often feel that this is a particularly unfair tax, especially as tax may have previously been paid on the accumulation of the assets; the term most used in our profession is "taxed from the cradle to the grave".

So what can we do to ensure our accumulated wealth is protected as much as possible against IHT?

• Well, first of all, you are given a Nil Rate band, which is the amount you can have within your estate without IHT becoming payable.
   
• A properly constructed will is then a fundamental requisite in dealing with IHT and can contain various trusts, which will help in mitigation.
   
• The use of trusts can be beneficial, and proper discussions with clients and choosing a suitable solicitor would be necessary before deciding which trust is best.
   
• There is a possibility that certain Investments and Life assurance plans can also be placed in trust to avoid the tax, and these can be of benefit in a number of ways. We would of course point out both the benefits and risks attached to these methods when deciding the correct course of action.
   
• Gifts to your favourite charities are again not taxed and can be a way of you supporting establishments you hold dear whilst ensuring the taxman doesn’t benefit and your chosen charity does.

It is fair to say that a complete analysis of each clients situation would be required setting out the planned approach to mitigation of Inheritance Tax ensuring the client is fully aware of the proposed actions including costs and timeframes.

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