Now we are faced with Inheritance Tax at 40% on a fair chunk of what is left. Even paying for care for a few years will not make much difference. One is tempted to take a lot of expensive holidays, or change cars frequently, to use some of the taxable band. There are limits to how much one can pass on to grandchildren in advance, except as Potentially Exempt Transfers. Charitable donations or bequests may be the way.
Isn't it a great thing for anyone to be in a position to pay Inheritance Tax? It means you've amassed sufficient wealth that you can spend whatever you like and you'll still be above the threshold for Inheritance Tax, and even better, it's a tax you don't even have to pay while you're alive. You make it sound like a problem!
I get the idea of having expensive holidays because you want them - that's perfectly sensible and rational - but it seems that some people would rather waste their money rather than let the government get their hands on any of the money. Let's not forget, if people do fritter away all their assets, it's the government who'll be taking care of them for whatever support they may need in the future.