How can married couples avoid the IHT trap?

The UK inheritance tax (IHT) code provides significant advantages for married couples and those in civil partnerships. Transfers between spouses enjoy unlimited exemption from IHT. However, there is an exception to this rule. Where the recipient is non-UK domiciled, the exemption is restricted to £55,000 over a lifetime. The excess will be a potentially exempt transfer (PET), unless another exemption can be availed of. The exemption is available only to married couples and those in civil partnerships. A long-term relationship, no matter how long-term, no matter how stable, is not a...