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One of the country's leading private client law firms indicated that whilst Labour's proposals would probably lead to a broader distribution of wealth, they could be considered unfair by some.

Helen Gaskell, a solicitor in the Wills, trust and probate department of Pannone said: "Individuals making Wills could regard such provisions as limiting their freedom about to whom and how they leave their estate because of the likely tax implications for recipients.

"Currently, inheritance tax liability falls on the estate of the deceased rather than those people or organisations who are bequeathed all or part of it. By transferring the burden to those receiving assets, it would bring England and Wales into line with most other countries in Europe.

"However, the absence of detail in what has been outlined in the Lords only raises question marks about whether what's being recommended would be along the lines of the French system, in which the closeness of an individual to the person whose estate is being divided up determines the rate of inheritance tax they pay."

Miss Gaskell added that, despite both Lord Eatwell's recommendations and HMRC's desire to claw back some of the £10 billion it claims is lost to the Treasury in tax avoidance each year, the new measures would not necessarily put an end to attempts to reduce individuals’ tax bills.

"Even if these new proposals were adopted - something that seems unlikely given the Government's immediate response - people will always find ways to mitigate their inheritance tax liabilities.

"For now, we can only speculate on what the situation would be. However, benefactors might increase the number of gifts they make and the number of people they gift to during their lifetime and in their wills and, therefore, reduce the potential tax bills their relatives and friends might ultimately have.

“Also, one might assume that there would be allowances put in place by HMRC to establish a limit for recipients above which inheritance tax would become due. That, in turn, would presumably lead to more planning among families about the way in which assets or estates are handed down so as to find a way of remaining within such thresholds.”

Pannone's private client department has handled more than 800 Wills and probate cases in the last two years.

To arrange a discussion with a  Wills, trust and probate solicitor contact us on 0800 840 4929.