Advice can result in lower inheritance tax bills

Speaking to a financial advisor can minimise the amount of inheritance tax that your loved one will have to pay.

According to Alex Pegley, director of financial advisor Calculis, there are a number of ways in which co-habiting couples and siblings can avoid being hit with large bills.

"There's some really simple planning to be done around the edges, to place funds into trust where you can still benefit from an income from the monies or benefit from the capital," he said.

"There are various trusts that can be used - one can invest in qualifying investments that you hold personally, but after two years are not susceptible to inheritance tax."

Inheritance tax applies to people whose estate is above £312,000 when they die, and is only payable on the excess above this nil rate band.

Last week, two elderly sisters lost a legal fight where they were after the same rights as married and gay couples.

The European Court of Human Rights in Strasbourg concluded that they are not being unfairly discriminated against under UK inheritance tax law.