You mentioned that you hold around £150,000 in cash. Mr Cook suggested that, while it might feel reassuring, if the money is not needed for short-term spending, it might be worth using it more effectively.
Government gilts, for example, can provide attractive yields and have favourable capital gains tax treatment.
Mr Cook added that both your Isas and future pension withdrawals provide assets that could be given if inheritance tax reduction remained a priority.
Life assurance, policies written in trust which sit outside the estate, can be used as a valuable tool, according to Mr Bell.
They provide beneficiaries with immediate liquidity to help meet an inheritance tax liability, helping to avoid additional pressure on families.
Mr Bell suggested considering this option, given that inheritance tax often becomes payable before probate has been completed.
He added: “Where there are concerns about giving beneficiaries unrestricted access to large sums, trusts may also form part of the solution, allowing assets to be passed down while retaining an element of control and protection.”
Mr Cook said another possibility was using some or all of your private pension to buy a joint-life annuity, to pay out a guaranteed income and reduce the pension fund that could be exposed to inheritance tax.
“However, there is a trade-off,” he added: “Once purchased, an annuity cannot usually be reversed, and given that Cathy is 10 years younger than you, it may be worth carefully comparing annuity rates with the flexibility offered by remaining in drawdown.”
