In the UK, everyone whose estate exceeds the £325,000 threshold is potentially liable for Inheritance Tax (IHT) when they die. If there is a will in place, arranging payment is part of the duty of the executor. If there is no will, the administrator of the estate will arrange payment.

It's often misunderstood that the beneficiaries pay IHT, whereas it is paid before the beneficiaries receive anything. However, if lifetime gifts are made, it would be the beneficiary of the gift who makes payment.

When Inheritance Tax comes into play, it must be paid within six months of death, with interest charged on late payments.

In some circumstances, payment may be able to be paid through instalments on certain assets such as property which may need to be sold to cover the amount due. It must be paid before beneficiaries can receive the assets left to them.

When it comes to Inheritance Tax, being married or in a civil partnership can offer some large benefits. If your will passes to your wife, husband or civil partner, this usually means there wont be any IHT to pay. Your nil-rate band won't be used at all, and it's up to legal representatives to claim the transfer of the unused nil-rate band when the second partner dies.

This brings further benefits of reduced IHT that's due on assets as they pass down to children or other family and friends.

If you're a UK resident, all your worldwide assets are subject to UK Inheritance Tax. So, if you own property abroad, this property will be counted when figuring out how much Inheritance Tax you might owe in the UK.

However, tax rules can differ from country to country. So you might also have to pay some form of estate or Inheritance Tax in the country where the property is located. This could be complicated, especially if the two countries' tax systems don't play well together. There are some agreements between countries to prevent double taxation, meaning you won't be taxed twice on the same property, but it's not always straightforward.

Also, who you leave the property to can make a difference. Certain countries have specific rules about who you can leave property to, which might affect how much tax is due.

It's really important to get professional advice to navigate these tricky waters. Both UK law and the law in the foreign country will need to be considered to work out the best way to handle the property in your estate.

Generally, a common way for people to reduce Inheritance Tax is by giving money or assets to beneficiaries while they are still alive. However, there are certain rules that should be considered first.

When an estate is valued, it will include the total value of certain gifts made in the last seven years before death, or at any time if there was continued benefit from the gifted property.

There are some categories of gifts that can be made at any time, without incurring IHT, known as exempt transfers. These include:

• Gifts between spouses or registered civil partners
• Annual gifts up to £3,000 (in each tax year)
• Regular payments paid directly out of your income
• Wedding gifts or civil partnership ceremony gifts (up to £5,000 to your children, £2,500 to grandchildren, or £1,000 to others)
• Small gifts up to £250 per person, per year
• Gifs or donations made to charities, political parties or national organisations

There are also gifts known as potentially exempt transfers (PET), which are gifts to individuals which exceed the exemptions above. These gifts mean there is no IHT to pay straight away, but will be due if you die within seven years of making the payment and the value places your estate over the nil-rate band.

There is also no IHT to pay when making a chargeable lifetime transfer (CLT). This is when an individual makes a gift that is not outright - for example into a flexible or discretionary trust. Similarly to a PET, IHT will not apply if you survive for at least seven years after the CLT was made.

Lifetime gifts are commonly thought of as a way to reduce Inheritance Tax, but there are complicated rules involved. As well as abiding by the rules, you'll also need to consider the affordability of these gifts, leaving yourself with appropriate funds for your later years.

You may also wish to regain control of the gifts and when the beneficiaries can access them. Placing the money into a trust can allow for this. If your're looking at ways to manage your estate value, it's important to speak to a professional, like a specialist solicitor, to ensure you make appropriate and informed decisions.

Believing you're exempt from UK Inheritance Tax due to non-British citizenship could be misguided. In the context of this tax, your liability is determined by your residence, not your nationality.

So, what does that mean? If you own property in the UK that you call your permanent home, you could end up owing Inheritance Tax.

Now, the rules around this can be a bit of a maze. People often get tripped up, thinking they're in the clear, only to find out they owe tax. It's a tricky area, so you don't want to go it alone and hope for the best.

Trusts are legal arrangements, where your asset (or gifts) is held by a trustee or group of trustees, for the benefit of your beneficiary. When the investment is transferred to the trustees, it technically is no longer yours, meaning it will not count as part of your estate when you die, therefore significantly reducing Inheritance Tax liability for those you are passing the assets to.