We work hard all of our lives in order to provide a roof over the heads of our family members and to obtain those things in life which make us happy. When coming to the end of your life, you may be worried about a hefty inheritance tax being taken from your assets, thus taken from your beneficiaries. There are a few things that you can do in order to reduce the amount of assets you own in order to reduce the amount of tax that will be taken from your estate when you pass away. Inheritance tax (IHT) is paid on an estate which is worth more than £325k. Any amount above this figure is liable to be taxed at 40%.