You will need to start some inheritance tax planning if you have a large estate.

The tax is paid if the value of your estate is worth more than the "chargeable transfers" limits. 

Any assets you have transferred to someone else in the last 7 years before death are included in this calculation.

Death
rate
% 		Lifetime
rate
% 		Chargeable transfers
2010/11 and 2009/10
£'000
Nil Nil 0 - 325*
40 20 Over 325*

*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.

Reliefs
Annual exemption £3,000 Marriage - parent £5,000
Small gifts £250   - grandparent £2,500
      - bride/groom £2,500
      - other £1,000
Reduced charge on gifts within seven years of death
Years before death 0-3 3-4 4-5 5-6 6-7
% of death charge 100 80 60 40 20