IHT: Relieving the burden

Sue and Ian Smith are in their mid 60s and recently retired.  They have not yet downsized, as they have held-off putting their house on the market due to the slowdown in the housing market.  When they do sell, they hope to release £200,000, which they plan to invest. They plan to purchase a house outright worth around £200,000. They currently have wills which were written 15 years ago and came free when they bought their current house. They now have two grandchildren under the age of five, children of their daughter. Their son, who is in his 30s, is not married and lives in a small apart...