In 2010–11, public finances continue to be dominated by the aftermath of the global financial crisis and recession, with a pressing need to cut government borrowing.
Quite separately from tax on your estate, potentially exempt transfers and taxable gifts you made in the last seven years are reassessed on death and tax (or extra tax) may be due on them.
When considering inheritance tax, if you do have some resources to spare, make as full use as possible of the annual £3,000 exemption, regular gifts out of income and such like.
By making gifts to their family via gift plans, grandparents can place any growth on the investment outside their estates immediately.
Dying without a will - ‘intestate’ in legal terminology - means that your estate will pass according to the rules of intestacy.
When you die, everything you own – your home, possessions, investments and savings – goes into your estate.
When the first of a married couple or civil partners dies it may not be clear whether their survivor will need any of their unused tax-free allowance later on.
If your estate is likely to be well below the threshold for paying inheritance tax, there is no need to worry about it.
Your home is almost certainly your most valuable possession – and may be the main reason why your estate ends up over the threshold for paying
If you give something away but reserve the right to use it, it counts as a gift with reservation – and is treated as remaining your property.