The announcement by the Chancellor Alistair Darling that the inheritance tax allowance can be transferred between married couples and civil partners has prompted thousands of people to review their wills, trusts and overall financial arrangements.

The changes are backdated indefinitely allowing widows, widowers and bereaved civil partners to use their deceased partner’s allowance when passing on their estate to their children and families. People in this situation may be among the main beneficiaries of the changes and should seek legal advice as soon as possible.

Otherwise, the Chancellor’s announcement doesn’t change the situation nearly as much as one might imagine because it has long been possible for couples to effectively double their tax threshold by the use of trusts. Thousands of couples already have such arrangements in place. The changes also have no effect on single people and those who cohabit.  

Everybody, whether married or not, would be well advised to explore all the avenues available to protect their family’s wealth for the next generation. A little careful planning now can prevent thousands of pounds being wasted in the future.