Did you know that you can make a number of gifts that can reduce the value of your estate for Inheritance tax purposes?  The £3,000 allowance is a total for you, not for individual relatives.

However, you can use a previous tax year's allowance.  If you are looking to do some planning now, you can give £6,000 away tax free before 5 April 2016 to use this year's and last year's allowances (if not already used).  From 6 April 2016, you will lose last year's allowance.  

Tax is never easy, so speak to someone who knows before embarking on inheritance tax planning.