Heir today, gone tomorrow

So what should you do?

•Review your will to make sure your descendants will be able to take advantage of this new rule; in particular you should revisit any trust arrangements in relating to your main residence as the exemption only applies to direct descendants.

•Review any life cover that has already been put in place to help cover IHT.

•Take the opportunity to assess the tax efficiency of your other assets and investments.

Jeannie Boyle is technical director at EQ Investors