The Inheritance Tax ("IHT") regime underwent significant changes in 2007 which effectively allow married couples or civil partnerships to share their IHT bands. For the tax year 2010/11 this would equate to £650,000.

As a result of these changes many people have dismissed the need for a will. However, will planning is not just about tax planning but an essential device to protect your assets and potential beneficiaries.

Working with your legal advisers we can provide planning advice to ensure that assets are distributed in the most tax-efficient manner. For example, your business assets can be used to substantially reduce your potential IHT liability - if not eliminate it totally.

In addition, we carefully review a client's financial position to protect assets. This may include community care implications and the impact of fast-growing capital assets.

Nil Rate Band

With the freezing of the IHT Nil Rate Band again and the clear thought that we are heading for a £1m band, IHT planning has never been more important.

A Nil Rate Band Will Trust is definitely 'back in' and now is the time to think about any lifetime gifting you can manage as asset values are historically low and you are able to give a full Nil Rate Band of £325k away every seven years, thus maximising what you can transfer to the next generation free of IHT, and ensuring that the growth in any assets is outside your estate.

This also makes it a very good time to look at doing a Discretionary Gift Trust.