It was Benjamin Franklin who said that the only things certain in life were 'death and taxes'. Whilst we are all living longer it is a sure fire bet that at some point our number will be up and those with estates over a certain amount may well face the prospect of paying inheritance tax (IHT) and diluting their legacy. Politicians have promised an overhaul of the inheritance tax system for years but I think it unlikely that they will vote for a reduction in a tax which is generating several billion pounds of revenue each year, at the very time when the public coffers are looking a wee bit undernourished. If anything, the new 50p rate of tax suggests they are looking to increase the 'tax take' rather than reduce it for those perceived to be 'well off'. However, IHT is a burden more on the middle class of society than the super rich, who have often found ways to avoid it.

To be fair in 2007, the politicians did allow married couples to transfer their own annual IHT allowance on death from one to another (currently £325,000) and this was of help to a great number of people. But with house prices almost certain to increase after the recent downturns this will once more make this an issue. Put simply, most of this tax could be avoided by planning and taking advice often without any significant change to lifestyle or cost. People affected by this now or in the future can often use trusts and or wills to ensure the right people get their legacy at the right time. This should mean our own hard earned cash goes to the people we choose rather than the Treasury.