Plan ahead for the people who matter.

Keeping your plans relevant

Family circumstances and financial arrangements can change. It is useful to revisit your plans when something significant happens rather than assume that earlier decisions still reflect what you want.

How inheritance tax relates to your estate

Inheritance tax is assessed on an estate after someone dies. Property, savings, investments and possessions can all be relevant. Some lifetime gifts also need to be considered. A useful starting point is a list of what you own, how assets are held and any outstanding debts, rather than looking at the value of your home alone.

The amount payable depends on the available thresholds, exemptions and reliefs. The main tax-free allowance is often called the nil-rate band. A separate residence nil-rate band may apply when a qualifying home passes to direct descendants, subject to conditions and limits. Transfers between spouses or civil partners and the use of a deceased partner's unused allowances can also affect the calculation. These rules do not mean that every couple has the same tax-free estate.

For a first discussion, gather approximate asset values, details of joint ownership and any existing estate-planning documents. This helps identify which questions need a closer assessment before decisions are made.

Lifetime gifts and the seven-year rule

Giving money or assets to family during your lifetime can form part of estate planning. Some gifts qualify for exemptions. An outright gift to another individual that is not exempt will usually fall outside the inheritance tax calculation if you survive for seven years. Gifts into trusts can follow different rules, so the seven-year rule should not be applied to every transfer.

If you die within seven years, a gift may use some of the available allowance or create a tax liability. Taper relief can reduce tax on certain gifts made more than three years before death. It does not simply reduce the value of every gift. Keeping a dated record of recipients and values helps those dealing with your estate establish the position.

Giving an asset away while continuing to benefit from it can leave it within your estate for inheritance tax. Before making an irreversible gift, consider your own living costs, possible care needs and access to emergency funds as well as the tax position.

Bringing wills, trusts and protection into the picture

A will records how you want your estate to be distributed, while a trust can set rules for holding and managing assets for beneficiaries. Neither is an automatic way to remove inheritance tax. The type of arrangement, the assets involved and the rights retained by those setting it up all matter. Trusts may also bring administration costs and tax responsibilities.

It helps to separate three questions: who should receive an asset, when they should benefit and how any costs will be met. For example, leaving someone a share of a property raises different practical questions from leaving them accessible savings. Existing life insurance arrangements may also deserve review alongside your will and wider estate plans.

Bring copies of your will, any trust documents and relevant policy details to the conversation if you have them. We can explain the scope of the help available and identify matters requiring specialist legal or tax input. The aim is to consider your arrangements together while preserving the resources you need during your lifetime.