Inheritance Tax: What Most Families Need to Know

Why inheritance tax planning starts with clarity

Inheritance Tax (IHT) can materially affect the value passed to family and beneficiaries. Good planning starts with a clear record of what you own, who should receive it, and how your will handles gifts and residue.

Core points to understand

• IHT is generally assessed on the value of the estate above relevant allowances.
• Liability and reliefs depend on personal circumstances and asset structure.
• A will does not remove tax by itself, but it gives structure for planning and administration.

Common planning themes

Families often review:

• Who inherits specific assets
• Whether gifts are made during lifetime
• Whether trust provisions are required
• How business or property assets are treated
• How records are organised for executors

Why record-keeping matters

Executors need clear evidence of asset values, gifts, and liabilities. Weak records create delay, uncertainty, and additional cost.

Wills and tax efficiency

A well-structured will can support better outcomes by:

• reducing ambiguity over distributions
• allowing more reliable administration
• making professional advice easier to apply

For complex estates, specialist advice may be needed beyond standard online drafting.

Practical checklist

1. List major assets and liabilities.
2. Confirm ownership structure (including jointly-held property).
3. Check whether existing will instructions still reflect your position.
4. Keep supporting records accessible for executors.
5. Review after major life or financial changes.

Next steps

• Start your will journey: /intake
• Deeper explainer: Understanding Inheritance Tax
• Supporting instructions: Letter of Wishes