Top 10 tips: inheritance tax planning

As annual inheritance tax receipts exceed £6bn a year, it is essential to follow some basic tax planning to protect your estate. Stevie Heafford, tax partner at HW Fisher, explains

1. When do I need to start planning?

As early as possible as your circumstances and exposure to IHT will change over time. Early on, an insurance policy might be all that is necessary but more complex planning will be appropriate as wealth increases.

2. Can I afford to make lifetime gifts?

A good tool is a professional cash flow forecast which is updated regularly. You can plan in major life events (such as marriage, holidays, care fees) and see what your overall position is.

3. Is planning only for the wealthy?

No – many people have been pushed into the IHT net due to increases in property values.

4. What is the current nil rate band?