Inheritance tax (IHT) is currently levied on most things you leave behind above £325,000. This includes: your investments and savings; your home and car; your furniture and personal effects; even the proceeds of your life insurance, unless it is written in trust.To find out exactly where you stand in relation to inheritance tax, and to find out how to make the most of your inheritance, it is best to speak to an independent financial adviser (IFA).

Inheritance tax advice is very important and could save you a lot of money. Click here to find an IFA offering unbiased inheritance tax advice

The rate of inheritance tax is 40% for everyone. This is equivalent to the highest current rate for income tax. The tax is deducted from the estate on death before it can be distributed to the beneficiaries.

When considering what you will leave behind, making gifts (which are not subject to inheritance tax if you live for more than seven years after making them) is one method of maximising the wealth you pass on. You can also make exempt gifts for example from your normal expenditure or as wedding gifts up to certain limits. Inheritance tax advice can help you take advantage of the different methods involved.

Speaking to an expert can also be useful if you have been left money and want advice on investing it.

For more inheritance tax advice, visit our "Inheritance tax planning & advice" section.