If you can afford to make sizeable gifts, it can be the most straight forward and least expensive solution…
Gifts can take a number of forms, but this site is not an educational site. In our opinion gifting is used to either limit IHT growth or to mitigate IHT.
Mitigate IHT: Large gifts
Limiting IHT: Regular Gifts and Gifts from Normal Income
Please note: this graphic is subjective to change, not every expert will agree on the distribution of colours. There is much more to know before you act and that you should always seek financial advice first.
Gifts (in practice)
In most cases there is too much uncertainty about required access in the future for unknown expenses and longevity.
We will normally find that larger gifts are made to assist children and grandchildren in buying property, but beyond that there are usually better ways to move money out of the taxable estate over 7y (as you are able to maintain access to income and potential maturities via other methods).
The principles of smaller gifts and gifts from normal income is useful for somebody with excess income and we will usually suggest this method where it seems viable. In making these gifts to irrevocable bare trusts (a straight forward process) your regular gifts can build up funds for your descendants when they are 18 whilst also moving that capital out of your estate.
Bear in mind the rules here though, the gifts must be regular, made from excess income and not have an impact on your lifestyle.