Inheritance Tax · where to start

IHT planning isn't one decision. It's a sequence.

A Will makes best use of the allowances available on death. Lifetime planning is the more powerful lever: gifting, asset re-organisation, lifetime trusts, family investment companies. And lifetime incapacity can unstitch the best-laid plan, so LPAs belong in the picture too. There's a path through, and there's a right starting point for you.

If you already know what you're looking for, jump to the four routes. Otherwise, the path is below.

The path through Inheritance Tax

Most people who land here are looking for one product that ‘solves IHT’. It isn't usually one product. It's three layers of planning, applied in the right order for your estate. This is how to think about them.

01

On death

A Will makes best use of allowances

Every estate has a Nil Rate Band (£325,000). For those leaving a home to direct descendantsChildren, grandchildren and great-grandchildren, step-children, adopted or fostered children, and the spouses or civil partners (including widows and widowers) of any of them., there's also a Residence Nil Rate Band of up to £175,000. A well-drafted Will makes sure both allowances are captured cleanly, that a surviving spouse's allowances aren't lost, and that the structure does the work without active intervention.

What a Will can't do: shrink an estate that's already grown beyond the allowances. For that, you need the next layer.

02

Across your lifetime

Lifetime planning is the more powerful lever

This is where IHT planning earns its keep. Gifting uses the seven-year rule, your annual exemption, and smart use of surplus income. Asset re-organisation moves value into assets that attract reliefs (business, agricultural). Lifetime trusts give you protection and control without ownership. Family investment companies let value grow outside your estate while you keep direction.

The combinations are the work. The right combination depends on your estate, your family, and your timeline.

03

Against incapacity

LPAs keep the plan intact

If you lose capacity before death, your attorneys make decisions. Without Lasting Powers of Attorney, the Court of Protection appoints a deputy, and the carefully built IHT plan can grind to a halt because no one has authority to continue gifting, restructure assets, or run the family company.

LPAs are the protection layer. They aren't an IHT product, but without them the IHT product doesn't survive.

IHT planning works when these three layers fit together. A great Will inside a shrinking estate isn't enough. Aggressive gifting without LPAs is fragile. A clever lifetime structure without a Will to receive what's left is incomplete. Start with whichever layer is missing for you.

If this is your IHT question…

Four ways to take a next step. They aren't mutually exclusive. Most people use more than one as they go.

If you want to read

Learn how the layers fit together

A plain-English IHT guide covering the allowances, the seven-year rule, the reliefs, the trusts, and the choices behind each. Written by a solicitor, available as a downloadable PDF.

See the IHT guide

If you want to see numbers

Try the free Estate Modeller

Enter your estate roughly, model the outcomes under different Will architectures, and see what each structure would do for your estate. Anonymous and instant.

Open the Modeller

If your estate is shaped by IHT

Start with Strong Foundations

The advised Wills + LPAs tier that handles IHT planning architecturally: life-interest trust on first death, discretionary trust on second death, NRB and RNRB capture, protection against untransferable reliefs being lost. Fixed price, delivered with a Will-architecture call.

If IHT isn't a concern for your estate, Foundation Essentials is the execution-only entry tier (£1,400 couple / £700 single).

See Strong Foundations

If you want to talk it through

Book a consultation

For estates where the right answer involves lifetime planning, trusts, business or agricultural assets, second marriages, or cross-border elements, a 20-minute call with a solicitor scopes the work.

Book a 20-minute call

What you'll find when you read deeper

The IHT guide goes through the topics most often relevant to estates between £500k and £5m. None of it is advice. It's the conceptual map most people are missing when they first start looking at IHT.

  • The two personal allowances. Nil Rate Band, Residence Nil Rate Band, and how they transfer between spouses.
  • The tapered RNRB. What estates over £2m lose and how smart planning aims to preserve the full relief.
  • The seven-year rule. How gifts move out of an estate, what traps to look out for, and how tapering only affects the rate of tax, not the value of the gift.
  • Business and agricultural relief. What qualifies, what doesn't, and what the recent Budget changes mean.
  • Trusts. Discretionary, life-interest, and bare trusts, and what each one does to IHT exposure and to control.
  • Family Investment Companies. When an FIC adds something a trust can't, and when it doesn't.
  • The incapacity gap. Why LPAs are the lever that keeps an active IHT plan running through later life.
Read the IHT guide

Who's behind the answers

Arvéla is the consumer brand: the guides, the free Estate Modeller, the diagnostic tools, the Wills + LPAs tiers from Foundation Essentials to Strong Foundations. Use it to learn, to model, and to find the right starting point.

When the work crosses into regulated legal advice, such as drafting your Wills, advising on trusts, or structuring lifetime gifts, it is delivered by Arvéla's chosen legal service provider. You'll see the engagement letter before any work or payment starts. See Your Legal Services for current provider details.

Arvéla is a trading name of Cascade Legal Ltd. Read more about how it all fits together.

Regulation and credentials

Solicitor-led workDrafting and advice handled by qualified solicitors via Arvéla's chosen legal service provider. See Your Legal Services for full provider and regulator details.
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Insured and accountableProfessional indemnity insurance in place, the SRA Compensation Fund, and complaints handling under the SRA Code.
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Fixed price, agreed up frontWhere work is fixed-fee, the price you see is the price you pay. Where it isn't, the call scopes the work before any commitment.
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Engagement letter firstA written engagement letter sets out scope, price, and timeline before any work begins or any payment is taken.
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