Mention the words ‘inheritance tax’ to ­anyone enjoying a quiet pint at your local pub tonight or at the weekend and I’m sure their response will be to froth at the mouth.Although very few of us ever have to pay the tax from the proceeds of a loved one’s estate – I didn’t as executor to my late mother’s – IHT is still widely despised. It’s seen as a form of nasty double taxation – a tax on the prudent as well as the wealthy, although, of course, they’re no longer around when the IHT bill must be paid, so it’s more repellent than most other forms of taxation.A survey by law firm ­Kingsley Napley, published today, ­confirms this widespread antipathy to IHT. According to its analysis, conducted last month among a representative sample of UK adults, nearly half of ­people (49 per cent) believe the tax should be given the chop altogether, compared to 36 per cent who oppose its abolition.  IHT is the ­replacement of the flat 40% tax charge with a tiered system starting at 20% and rising to 40% on the value of estates above £1.5mTo square the circle, 14 per cent don’t have a view while 1 per cent were lost in the survey’s ‘rounding’.Of course, this wealth-hating, freebie -loving Labour Government thinks ­differently. Horribly boxed in by its ­commitment to leave income tax, National Insurance contributions and VAT rates untouched – and after ­pouring billions of pounds of taxpayers’ money into the pockets of strike-happy public sector workers – it is now ­frantically scrambling around for sources to ­replenish revenues.As a result, it has its beady eye on IHT as a potentially rich source of future revenue. While IHT receipts continue to rise – £7.5 billion in the last tax year (up 5.6 per cent on the year before) and £3.5 billion in the first five months of this tax year (£0.3 billion up) – Chancellor Rachel Reeves knows that additional rich IHT seams are there to be mined.And her Budget at the end of the month (four weeks today) should confirm which seams she has chosen to focus on.What IHT storm is coming our way?When it comes to raking in more money from IHT, financial think-tanks haven’t been short of an idea or three to throw Ms Reeves’ way. Leading the charge is The Resolution Foundation, an organisation focused on improving living standards for those on low-to-middle incomes. It believes the current IHT system ‘leaves much to be desired’.Currently, the value of someone’s estate when they die is potentially liable to 40 per cent IHT if it exceeds the current nil-rate band of £325,000. There is also an additional ‘residence’ nil-rate band of £175,000 for those who leave their home to a child or grandchild – the maximum amount available for estates below £2 million. For married couples or those in a civil partnership, they can pass on their wealth to their partner (including their nil-rate IHT bands), resulting in up to £1 million of their estate being tax-free when the surviving ­partner dies.The Resolution Foundation believes this is all overly ­generous. It says there is now a ‘good case’ for doing away with the residence nil-rate band altogether, a move which would raise £2 billion a year for Labour. Death duties: Currently, the value of someone’s estate when they die is potentially liable to 40% IHT if it exceeds the current nil-rate band of £325,000This would mean that instead of a surviving spouse being able to pass on up to £1 million of their wealth tax-free when they die, they would be restricted to £650,000.There’s more (of course). The foundation believes pension pots left behind by the deceased should be brought into the IHT net – they are currently excluded.It also calls for the reform or ending of reliefs that allow ­families and farmers to pass on their businesses through the generations without being hit with onerous IHT bills along the way.The only crumb of comfort the think-tank offers onIHT is the ­replacement of the flat 40 per cent tax charge with a tiered system starting at 20 per cent and rising to 40 per cent on the value of estates above £1.5 million.This move would go down well with many people. Kingsley Napley’s research indicates strong opposition (69 per cent to any increase in the 40 per cent tax rate. It also shows strong support (64 per cent) for the raising of the £325,000 nil-rate band which potentially could happen if the nil-rate residence band gets the chop from Ms Reeves.James Ward, a partner at Kingsley Napley with responsibility for private clients, says that while IHT is paid by less than 10 per cent of estates – mostly in London and the South East because of high property prices – an extra £2 billion tax grab is ‘not to be sneezed at’. He adds: ‘Those who may be impacted [by a more onerous IHT regime] should act fast to take prudent estate planning steps ahead of October 30.’Absolutely. In response to Ward’s sensible advice, Money Mail has come up with seven magnificent IHT planning tips – some of which will ensure your financial wishes are carried out when you die (crucial) and others that will protect your estate from Ms Reeves (vital).1 Making a will does not make your estate immune from IHT. But as Olly Cheng, financial planning director at wealth manager Rathbones, says: ‘It will ensure your ­legacy is handled in a way that reflects your intentions, ­provides for your loved ones, and ­maintains the harmony and financial stability of your family.’Research by Rathbones among ‘high net worth’ individuals – those with investable assets of £100,000 plus – shows that only 45 per cent have made a will.  Sensible step: Research by Rathbones among ‘high net worth’ individuals – those with investable assets of £100,000 plus – shows that only 45% have made a willA horrifying statistic. So, if you haven’t got a will, make it a financial priority to get one. And if you have a will, ensure it is up to date and reflects your wishes now, rather than those prevailing 20 or 30 years ago.If you have never had a will before, a local solicitor is probably your best first port of call. Also ask friends, because they will ­probably be able to recommend one that they have used – and have been happy with.2 Leaving money to charity in your will is not only philanthropic, but it is also free from IHT. For those who believe IHT is likely to be an issue upon their death, a charitable gift of 10 per cent or more of their wealth (details of which should be spelt out in their will) will also result in a lower tax rate being applied to the remaining estate – 36 per cent rather than 40 per cent.Most charities, keen to benefit from legacies, provide information on how to leave a gift in your will. Of course, such a decision should be discussed with family, rather than them finding out upon your death.3 Making cash gifts to charities while you are still alive will also help reduce the amount of your wealth potentially exposed to IHT. Your chosen charity will also love you for ever more because it can claim back 25p of gift aid on every £1 you donate.The only condition is that you must be a UK taxpayer – which more of us are because of the standard personal allowance being frozen at £12,570 since the tax year starting 6 April 2021 (and likely to be frozen for a few more years yet). Donate: Making cash gifts to charities while you are still alive will help reduce the amount of your wealth potentially exposed to IHTHigher and additional rate taxpayers can also claim back a chunk of tax relief on any gift aid donation they make. So, if you donate £100, the gross donation to the charity is £125. A 40 per cent taxpayer can then claim back £25, reducing the net cost to £75 while a 45 per cent taxpayer can claim £31.25 (net cost of £68.75). This is claimed back through self-assessment.4 Putting some of your assets – cash, property, or investments – into a trust can take them out of your estate for IHT ­purposes. Yet the world of trusts is a complicated one. Trusts come in many forms.They range from simple ‘bare’ trusts where the beneficiaries get all the assets at age 18 (16 in Scotland) – through to discretionary trusts where trustees have absolute power in deciding how the assets are divided among the beneficiaries. The tax rules also differ according to the type of trust used.Although an effective estate planning tool, Rathbones’ Mr Cheng says such a route should only be considered after taking financial advice.He adds: ‘The rules around trusts are complex and have changed over the years. The result is that a tax charge may apply when money is paid into – or out of – a trust.‘It may also apply on the 10th anniversary of a trust. Advice is essential.’Most solicitors will set up a trust for you – as well as well-known financial brands such as Co-op Legal Services.Website unbiased.co.uk will help you find an adviser specialising in estate planning. Visit; unbiased.co.uk/discover/personal-finance/family/trusts-and-estate-planning5 For those of you who have plenty of cash sitting in the bank – and have children, grandchildren, or great-grandchildren you passionately care about – you can make IHT-friendly cash gifts under the so-called ‘seven-year rule’. This means that if you then live for another seven years, such ‘potentially exempt transfers’ are immune from IHT. If you die before the seven years are up, IHT could be an issue.The Chancellor could well extend this seven-year window in the Budget although it is unlikely that any change would be introduced until the start of the next tax year – and then apply to new gifts only.Potentially IHT-free gifts of shares and property can also be made under the same rule, but you could be liable to capital gains tax (CGT). Such gifts are treated for CGT purposes as if you had sold the asset. Loophole: You can make cash gifts to children or grandchildren under the so-called ‘seven-year rule’ – meaning  if you then live for another seven year they are immune from IHT.The best comment on this potential IHT buster comes from Jason Hollands, a director of wealth manager Evelyn Partners.He says: ‘For those who are comfortable that they have sufficient assets to enjoy their retirement – and don’t loathe their families – making gifts to support their children or grandchildren is a far more palatable option than leaving it to the Chancellor.’ Absolutely.One last point on potentially exempt transfers. Keep records of any gifts you make – and warn the recipient that they could possibly face a future tax bill if you die early.6 Currently there are several allowances you can use to gift money to loved ones which are 100 per cent IHT- free.The ‘annual exemption’ gift allowance allows you to give away up to £3,000 worth of gifts each tax year without them being added to the value of your estate.You can use the exemption to gift to one person or split it between several people. You can also carry any unused annual exemption forward to the next tax year – but only for one tax year.For example, if you gave £2,000 in the last tax year (ending April 5, 2024) to a loved one, the annual exemption rules allow you to make a gift of £4,000 this year. These two gifts will be IHT-free.So, a couple who didn’t use their exemptions in the last tax year could now make £12,000 of gifts – and in so doing it is all out of IHT ­target range.Other permitted gifts that take money out of IHT territory include ‘small’ annual gifts of up to £250 (per recipient), wedding or civil ceremony gifts (£5,000 to a child, £2,500 to a grand-child or great grandchild and £1,000 to ­anyone else). Regular gifts can also be made, but they must not compromise your lifestyle. These are often made by grandparents – for ­example, to help a grandchild pay rent on a home.7 Kingsley Napley’s Mr James says there are other ways to fight back against IHT, including the purchase of life insurance to cover any IHT liability upon death. A good adviser will tell you if these rather sophisticated estate planning measures are suitable for your financial circumstances.There’s always the alternative approach, he adds – ‘SKIing’, short for ‘spending the kids’ inheritance’. Interesting!Have you taken measures to reduce your exposure to IHT?Email jeff.prestridge@dailymail.co.ukSAVE MONEY, MAKE MONEYInvesting boostInvesting boost5.09% on cash for Isa investors5.2% savings rate5.2% savings rate90 day notice account rate boostFree share offerFree share offerNo account fee and free share dealing4.84% cash Isa4.84% cash IsaFlexible Isa that now accepts transfersDealing fee refundDealing fee refundGet £200 back in trading feesAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.