Estate Planning

Estate planning is the process of arranging your affairs so your assets pass to the right people, in the right way, with the least possible tax. It covers making a Will, creating Lasting Powers of Attorney, setting up trusts, and planning how and when to pass assets to family members.

The best time to start is now, whatever your age or level of wealth. Planning early gives you more options and time to implement them effectively. We advise at any stage and help you create a plan that evolves as your circumstances change.

Inheritance Tax is charged at 40% on the value of your estate above the nil rate band, currently £325,000. Married couples and civil partners can transfer any unused nil rate band to each other, effectively doubling the threshold to £650,000.

An additional residence nil rate band of up to £175,000 applies when you leave your main residence to direct descendants. Reliefs are available for business assets and agricultural property. We calculate your current exposure and advise on planning to reduce it.

The residence nil rate band (RNRB) is an additional Inheritance Tax threshold of up to £175,000, available when you leave your main residence to direct descendants such as children or grandchildren. Combined with the standard nil rate band, a married couple could pass up to £1 million free of inheritance tax if both allowances are used in full.

The RNRB tapers for estates above £2 million. It’s available for downsized or sold properties in some circumstances, and we advise on maximising your entitlement as part of broader estate planning.

Trusts separate legal ownership from beneficial ownership, giving you control over how and when assets pass to beneficiaries. Lifetime trusts can remove assets from your estate for Inheritance Tax purposes, provided you survive seven years after creating the trust and do not retain a benefit from it.

Will trusts take effect on death and can preserve nil rate bands for married couples, protect assets for children from a previous relationship, or provide for vulnerable beneficiaries. We advise on which trust structures suit your objectives and tax position.

Care fee planning looks at how the cost of residential or nursing care might affect your estate and what options exist to protect family assets. Care in England is means-tested, with the upper capital limit currently £23,250. Above this threshold, you typically pay for care yourself.

Planning options include timing of gifts, trust structures, and understanding how the rules work in practice. We advise honestly on what is achievable within the law, including where certain approaches may be challenged by local authorities.

You can make gifts of up to £3,000 per year free of Inheritance Tax (the annual exemption), plus unlimited small gifts of up to £250 per person per year. Gifts from surplus income, after maintaining your usual standard of living, can also be made free of Inheritance Tax if properly documented.

Larger gifts are known as potentially exempt transfers. They fall outside your estate if you survive seven years after making them. Gifts made within seven years of death are tapered for tax purposes, with the full 40% rate applying within the first three years.

Disputes over estates and Trusts are handled by our Litigation & Dispute Resolution team, who specialise in contentious probate and trust matters. They advise on challenging a Will, or making an Inheritance Act claim for reasonable financial provision, and contested trusts.

See our Contentious Trusts and Probate page for further information. Early legal advice is important as strict time limits apply to some claims.