26 May 2010
People 'should adjust wills to minimise IHT payments'
People seeking to reduce the amount of money that they pay to the state via inheritance tax (IHT) in the event of their deaths should make sure they are tactical when writing their wills.
This is according to Jane Baker, who suggested on lovemoney.com that there are a number of exemptions that consumers should become familiar with.
For example, married couples and civil partners can double their IHT-free threshold to £650,000 when the second partner dies.
In order to do this, any unused allowance must be transferred on the death of the first spouse to the second.
Ms Baker stated: "This could be an effective way to reduce your IHT bill."
She added that it is a good idea to seek professional advice concerning the subject.
In a change to its proposals resulting from the need to form a coalition with the Liberal Democrats, the Conservative Party has shelved plans it announced in its manifesto to raise the level at which IHT kicks in to £1 million.