Here are three simple steps worth considering:
Using annual and small gift exemptions, you can give away up to £3,000 tax free each year. You can also make an unlimited number of smaller gifts up to £250 to people who have not received any gifts within the £3,000 exemption.
Regular gifts by an individual that are made out of income tax are usually exempt. These gifts should not hinder the donor’s standard of living and should be part of a regular pattern of spending.
Pension death benefits are exempt from IHT, but if they are passed to your survivor they could form part of their estate, so careful planning is important. If you can survive comfortably on your pension, you could make gifts of some of your capital, or pension income itself can be extended to benefit your dependants.