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• Why consider it?
• Common questions
• Next steps

The importance of making a will is a common topic when discussing financial circumstances. However, for people whose assets add up to more than a certain amount (£325,000 for the 2009/10 tax year), who want to pass on as much as possible to their beneficiaries, early estate planning is also vital.

Tax issues

Inheritance tax doesn't only affect the very wealthy. Rising property prices have meant it's now an issue for an increasing number of people.

For the tax year 2009/10, inheritance tax is payable at 40% on all assets over £325,000 (the 'nil rate band'), subject to certain exemptions and reliefs. When the value of a home is taken into account, it can be surprising how many people go over the tax threshold.

Awareness

Since inheritance tax can extend to gifts made within seven years before death, you should be aware of your situation and know what actions are open to you as tax rules are often complex and can change. Inheritance tax and trust planning are an essential part of this and your financial adviser can offer guidance, and help you find the best course of action.