Inheritance Tax keeps moving up the agenda. Forecasts suggest government receipts will reach around £8.7 billion in the 2025 to 2026 tax year.
This is not just affecting the very wealthy. As property values and investment portfolios have grown, more families are now within scope, often without realising it.
That is prompting a shift in how families think. The conversation is no longer just about managing wealth today, but about how it will pass to the next generation, and whether the way it is currently structured will still work when the time comes.
Why more families are now exposed
One key driver is fiscal drag.
The main tax-free allowance, the nil-rate band, has stayed at £325,000 since 2009. Over the same period, asset values have risen significantly. House prices, pensions and investment portfolios have all grown.
The result is simple. Estates that would once have sat well outside Inheritance Tax are now being drawn into it, often without the family realising until much later.
Planning is technical, but it is also generational
Most estate planning conversations focus on the technical steps. Wills. Allowances. Gifting strategies. Trusts where they earn their place. All important. All necessary.
But often incomplete.
One of the most valuable parts of effective planning is bringing the next generation into the conversation, in a way that feels appropriate for your family. This does not mean sharing detailed numbers or disclosing everything. It can simply focus on:
- How the family thinks about long-term financial security
- The principles behind decisions and investments
- Why planning matters and what it is trying to achieve
- How the wealth is intended to support future generations
Over time, this builds understanding, confidence and a sense of responsibility. It also tends to make the eventual transition far less stressful for everyone.
A more structured approach to family planning
We work with families to bring clarity to both the technical and the human side of planning. That often involves helping families structure conversations, explain how plans are set up, and make sure intentions are understood across generations.
Where appropriate, this can extend to supporting other family members with their own financial planning. The aim is alignment rather than fragmentation. The whole family pulling in the same direction, with one set of advisers who understand the full picture.
Next steps
It is worth reviewing whether your current arrangements still reflect your financial position and your longer-term intentions. The rules have moved. Asset values have moved. Family circumstances change.
If a fresh look would help, that is a conversation we are always happy to start.
Sources: Office for Budget Responsibility — Inheritance Tax forecasts; HMRC — Inheritance Tax thresholds.