But this isn't the right attitude. It's particularly not the right thinking for the following reasons:

• Now that house prices have risen so much, roughly one in four of us will be left with an IHT bill when we die.
  
  
• IHT can usually be avoided – in many ways it's a voluntary tax.
  
  
• It starts and stays at 40%. That’s a huge and penal rate of tax. We think 40% is an outrageous rate and we do all we can to help our clients save IHT.

So you really should think of doing something about IHT. But what can you do? Here are our six steps to saving tax:

1. Make a Will.
   
   If you don't make a Will, chances are that your assets on your death will not be distributed according to your wishes. It's easy to make one and you can save solicitors' fees by using Lawpack's Last Will & Testament Kit.
   
   
2. List your assets and decide who you would like them to go to.
   
   List all your assets and their values, and start thinking how they should be distributed on your death. If you have done nothing else, this is a very good place to start. (A useful form can be found in our book, Tax Answers at a Glance.)
   
   
3. Calculate the Inheritance Tax due.
   
   You need to total the value of all of your assets, take off your liabilities, take off the IHT threshold (currently £312,000), and see what you have left. If you have a negative figure, then you don’t have an IHT problem. If you have a positive figure, then the Chancellor will want 40% of that sum.
   
   
4. Decide how seriously you view the impact of any IHT payable.
   
   If you can live (or should we say “die”) with any impact that IHT may be going to make on both your estate and your successors, then, so long as you have made a Will, you can probably rest at ease. But, after saying “probably”, do keep in mind that IHT at 40% can make a serious dent in your estate. As you're not a tax expert, you might overlook something and the situation might not be as lenient as you may be supposing – or it might be better. Accordingly, you may well be advised to at least take professional advice and get your IHT calculation checked.
   
   
5. Choose an adviser.
   
   If you have an IHT problem, then consult a suitably qualified adviser on how to lessen the charge. The best professional advice on IHT mitigation is to be gained from someone who specialises in IHT mitigation and not necessarily from a high street accountant, financial adviser or solicitor. So choose your IHT adviser very carefully.
   
   
6. Take some elementary steps to reduce tax.
   
   If you do nothing else, at least consider the following possible courses of action to reduce the impact of IHT:
   
   
   • Make a Will.
     
     
   • If you're married, everything you leave to your spouse passes to them on your death free of IHT. So, while this is not necessarily the best possible tax planning, by leaving everything to your spouse, you're probably reducing the bill on your death to £NIL. On the other hand, if you're currently unmarried and facing an IHT bill on your death, then we strongly suggest you follow steps 1 to 4.
     

   Finally, as part of your IHT planning, try to ensure that your survivors will have enough to live on.

Hugh Williams qualified as a Chartered Accountant in 1970. He started his own practice H M Williams Chartered Accountants in 1973. He has held positions on the committee of the Tax Faculty of the Institute of Chartered Accountants and has also addressed the Tax Faculty Conference on tax practice management. He is author of two books - Tax Answers at a Glance and 101 Ways to Pay Less Tax.

Further information
Spinster sisters escape eviction after losing Inheritance Tax fight in Europe
Why should I make a Will?
Are you living unmarried with your partner? Why you should make a Will
Make a Will now and save solicitors' fees by using Lawpack's DIY Will Kit
Find out ways to cut yor tax bills with Hugh's book, 101 Ways to Pay Less Tax
Get all your tax questions answered with Hugh's book, Tax Answers at a Glance