You don't have to be rich for your estate to be subject to Inheritance Tax. Currently it's levied on everything you leave over £325,000 (2009/10). See below for what it includes:

• your investments and savings
• your home and car
• your furniture and personal effects
• the proceeds of your life insurance, unless it is written in trust.

The rate of Inheritance Tax is 40% for everyone. This is equivalent to the highest current rate for income tax. The tax is paid by those that inherit – and is deducted from the estate on death – so Inheritance Tax is relevant whether you stand to gain an inheritance or you plan to leave one.

Inheritance Tax planning

There are a number of ways Four Seasons Financial Planning may be able to help you to reduce any possible Inheritance Tax.

Some questions we can answer:

• Are there advantages in making grandchildren the main beneficiaries of my will?

• What is the Nil Rate Band?

• What is the IHT liability if I own property abroad?

• Can I "gift" my house to my children but remain living in the property?

• What are the rules relating to gifting personal effects?

• Is any IHT charged on the inheritance left to my spouse?

• What are the IHT rules on "gifts within the 7-year period prior to death"?

• How do I set up a family trust?

• Can I really give away £3,000 each year free of IHT?

• Can I put money into a trust and still receive an income?

• Do I still need to survive 7 years if I gift surplus income to my family?

• If I gift money to my family in a trust and it doubles in value, what is the tax position.?