1.

Pension Trusts

Most people forget to write their pension plans in trust, or they do not understand the significance of not doing so.

2.

ISAs are not Inheritance Tax efficient

ISAas are very income tax and capital gains tax efficient but very Inheritance Tax inefficient.

3.

Life Policies and probate

If you have any life policies, make sure they are written in trust. With a flexible trust, for example, the monies are paid out immediately without having to wait for probate to be granted which may take years.

4.

Update your Wills

Do you want some of your estate to go to the chancellor, or that relative you never got on with?

5.

Lasting Powers of Attorney

All elderly people should have LPAs written- the alternative is for the Court of Protection to take control out of the family's immediate hands if you become disabled.

6.

Gifts

Make a record of all gifts just in case in the future, your beneficiaries or spouse are challenged.

7.

Don't Delay

There is never a right time to take action, but delaying taking action could lead to the chancellor getting more of the inheritance pot rather than the family.

8.

Take legal advice on trusts

Although trusts are generally easy to set up, it is always worthwhile taking the best possible advice on the most appropriate investments going into it.

9.

Using Investment Bonds in Trusts

Where a trust has been set up, investigate how investment bonds can be used to reduce costs and increase tax efficiency.

10.

The family home

In a large number of cases, the family home ( as a bricks and mortar investment) can present an IHT planning problem. Don't discount the benefits of equity release mortgages to create a debt against the estate.

11.

Nil Rate Band allowance

Couples both have a nil rate band allowance ( 2011/12 £325,000) Make sure you utilize both rates.

12.

Life Assurance

The simplest way of avoiding paying any IHT-insure against it. When Whole of Life policies are used, they can create a surrender value if never used-so reducing the costs considerably.

13.

Annuities and Back to Back Schemes

Here a purchased life annuity will pay the income to pay the life assurance premiums and when written in trust, will pay for any subsequent liability.

14.

IHT Exemptions

Find out what falls under the exempt gifts legislation like normal expenditure out of income, and gifts to uk charities.

15.

Check out from the IHT decision making tree the most appropriate trust to use.

This process will help you decide whether you need access to assets ( capital or income) and the implications of doing so.

16.

Specialist avoidance schemes

Investigate those specialist schemes which can get your money out of your estate after two years.