Planning can pay huge dividends when it comes to Inheritance Tax. You may not want to think about your death, but it is better to face it now and start planning, so your hard-earned assets pass to your loved ones, not the taxman.

Here are a few reminders on how to plan for Inheritance Tax sensibly:

Make a Will now: This is the most fundamental piece of Inheritance Tax planning. And remember to keep your will updated. Consider Discretionary Trusts if your estate is likely to end up with a large bill.

Work out your assets: You may not think that Inheritance Tax will hit your estate. Take into account everything you own and you might well find that it does. Then you can plan to cut your Inheritance Tax bills. Remember to review the value of your assets every few years or so to take account of growth.

Consider gifts: If your calculations show that your estate is likely to face Inheritance Tax, then you might consider using your Lifetime gifts allowances to cut the size of your estate. Have any other gifts you have made in the past now exceeded the seven year rule, putting them outside your estate?

Do you need some insurance: If, despite all your careful planning, your estate is still likely to be liable for Inheritance Tax, consider taking out insurance to cover a potential tax bill is one of many planning options.

Question: I am worried that if I do any IHT planning, I will not be able to maintain my lifestyle, as I get older. Is there anything I can do to solve this?

Answer: Yes, there are many steps that one can take to preserve your assets for the next generation, without affecting your lifestyle or income.

Question: I would like to give assets away, but if I give them to my children and they divorce, half of the assets will go to their ex-spouse. What can I do?

Answer: A mechanism can be set up for you to safeguard your assets at the same time utilising any unused allowances for income or capital gains tax which your children or grandchildren may have.

Remember that should you wish to get involved in creating trusts you will need proper professional advice. The same goes for creating a Will. A badly-written Will is almost as bad as no Will at all.

If this area of taxation is a concern to you, you should ensure that strategies are in place so that your wealth is preserved and protected for your children and your future generations.