Despite the threshold rising to £650,000 for married couples and civil partners, (£325,000 for individuals, tax year 2010/11) the boost in house prices over recent years means inheritance tax (IHT) could still be a concern. It is therefore sensible for investors to consider the potential liability they may be leaving behind.

For most, the key contribution to the value of their estate will be the family home but it is not the only asset that counts. For example, ISA investments shelter investors from capital gains and income tax but not from IHT. Property held abroad also counts towards the total. The problem with IHT is not just that it has to be paid, but that it generally has to be paid quickly. Therefore, without a little planning, the family home or precious heirlooms may need to be sold to meet the bill.

However, there are things you can do to offset the impact. For example, you have an annual gift allowance of £3,000 a year. Certain gifts for weddings, from parents, grandparents and even friends, are also exempt. Other useful tools, despite recent changes, include loan trusts and discounted gift schemes - indeed, there are a myriad of options available, some more complex than others.

Given the changes in legislation which the Government is using to try and close the potential tax loopholes, it is always worth getting professional advice on the best way to ease any burden on your estate.