There are three key things that you need to know about Inheritance Tax :-

• Transfers between a married couple are completely exempt (provided that the recipient spouse is domiciled in the UK ) whether made during lifetime or in a Will.
• No Inheritance Tax is due on the first £325,000 (from April 2009) but note the provisions of the transferrable nil rate band if you are married or in a civil partnership. This doesn't however apply to co-habitees or if you are single or divorced, in these circumstances you would still have a nil rate band of £325,000. This increases annually.
• If due, Inheritance Tax must be paid before probate - i.e. before anything left in your Will can be distributed.

There are several ways of providing for Inheritance Tax and we most stringly suggest that, as well as making a Will, you consult a professional adviser if your estate will be subject to Inheritance Tax.