Why is it important to think about estate and tax planning?

We all know that having a Will is important, and everyone needs to have one. It not only sets out your wishes after your death; it also helps you to better understand your current and future estate.

When estate planning, you will need to think about how to make your Will as tax-efficient as possible by finding practical and intelligent solutions to plan for and mitigate tax alongside other liabilities.

Why should I consider estate planning?

Mitigate Inheritance Tax

After working for years, it’s frightening to think that on your death, Inheritance Tax (IHT) will be payable if your estate is over the IHT threshold.

IHT is charged at 40% on the part of your estate above your available allowances. The nil-rate band is £325,000.*

From April 2027, most unused pension funds will count as part of your estate for IHT.

If you think this applies to you, it’s worth seeking legal advice on IHT and estate planning.

Pass assets on with Trusts and gifts

Your estate plan could involve providing gifts, including lifetime and annual gifts, as well as gifts to charity. You can also consider Trusts to pass on assets to other people, including children or invest in regulated financial products, as long as you seek the right financial advice. Read more about the benefits of Trusts here.

Protect your assets

Estate planning also helps to protect your assets from third parties after your death.

For example, you can ensure that if your partner decides to remarry, their new spouse cannot inherit from your estate. You can also ensure your assets are safe from troubled dependents whom you feel may fritter away any money left to them because of habits or financial issues.

You can provide for loved ones if they have a disability without risking their eligibility for means-tested state benefits, and put plans in place to protect any business you may have and the people you employ.

Thinking about what happens when you die is always a difficult task, but effectively planning your estate is really worth considering if your estate will be worth more than the IHT allowance.

Estate planning is not just about mitigating taxes. It’s about making the most of your assets, protecting them where needed and perhaps using it to benefit others, ensuring that during your lifetime, you are doing all you can to leave a well-thought-out, lasting legacy.

Contact us about estate and tax planning

If you need to write or update your Will, create a Trust, or you want legal advice about dealing with the affairs of someone who has died, contact our specialist team.

Alternatively, call us on 0117 325 2929 or complete our online enquiry form.

* Correct as at October 2026