Inheritance tax is usually a concern for adults once they reach their sixties and seventies - and with children who have flown the nest.
With the recovery in the housing market and a five-year freeze in the inheritance tax threshold however, the younger generation are paying more attention to the tax, which comes into effect after death.
The inheritance tax threshold has been set at £325,000; any estate that is valued above this is taxed at 40 per cent. Average London property prices now exceed £430,000, according to Government figures, easily sitting above individual IHT thresholds by one-third.
The current £325,000 ceiling is set to remain in place until 2018 if not longer, the Government has indicated. Meanwhile properties are expected to rise in value by 25 per cent in the same time span, so many more homes across the nation face breaking through the tax threshold.
Understanding of the threshold and basic rules of IHT is presently low, though it is growing. Financial services group, Close Brothers, found that among a set of respondents with assets worth more than £325,000, about 50 per cent knew about the threshold.
There are ways and means to reduce an expected IHT bill. One option for middle-class homeowners is to insure against the tax bill by taking out life insurance held in trust.