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Surprisingly, many people still die intestate (i.e. without a will).

With the ease that wills can now be drafted and the low cost of such services, it makes good sense to make a will and can save a lot of needless heartache and stress for those left behind, not to mention saving a lot of tax.

A simple will gifting all your worldly goods to your spouse or civil partner will avoid IHT on your entire estate, as gifts between spouses/civil partners are exempt from IHT.

Remember, if the nil rate band is not fully used on the first death, the unused percentage is available on the death of the deceased’s spouse/civil partner.

Example:
Rudolph dies intestate in 2014, leaving an estate valued at £1m. Under the intestacy rules, his wife and their children will each receitve a proportion of the estate, resulting in a large IHT bill for the family.

This could easily have been avoided by making a will and leaving all his estate to his spouse or leaving property to his children up to the nil rate band (£325,000) and the remainder to his spouse.