What you leave behind matters. So does how you leave it.
Estate planning is not just about minimising inheritance tax. It is about making sure that what you have built reaches the people you intend, in the way you intend, with as little friction, delay or tax as possible.
Inheritance tax receipts are at a record high, and rising.
HMRC collected over 7.5 billion pounds in inheritance tax in 2023/24, a record figure. The freeze on nil-rate bands until 2030, rising property values, and from April 2027 the inclusion of unspent pensions in taxable estates, means more families than ever will be affected.
The good news is that inheritance tax is one of the most plannable taxes in the UK. Unlike income tax or capital gains tax, you typically have years of warning and a wide range of legitimate strategies available. The key is starting early enough to use them.
The big questions at this life stage.
What people in this position most want to understand.
How much inheritance tax will my estate pay, and what can I do about it?
How do I pass wealth to my children or grandchildren without losing too much to tax?
What happens to my pension when I die after April 2027?
Is my will up to date and does it still reflect my wishes?
Should I gift money now, or is it better to leave it in my estate?
How do I make sure my estate does not end up in a dispute or delay?
Where we focus for people at this life stage.
The planning areas that matter most when thinking about legacy.
Inheritance tax planning
Reviewing your current estate value and projected inheritance tax liability, identifying which reliefs and exemptions apply to your situation, and building a plan that reduces the tax bill efficiently. This includes the use of annual gift exemptions, potentially exempt transfers, Business Relief, and charitable giving.
Pension and Finance Act 2026 planning
From April 2027, unspent pension funds will be subject to inheritance tax for the first time. This changes the fundamental logic of using a pension as an estate planning tool. We help you understand the impact on your specific position and build a plan that accounts for the new rules before they take effect.
Gifting strategy
Structured gifting can significantly reduce an inheritance tax liability over time. The annual exemption, the seven-year rule, gifts from surplus income, and gifts in consideration of marriage each have specific conditions. We help you gift in a way that is effective, documented correctly, and does not leave you financially exposed.
Trust planning
Trusts can be an effective way to pass assets to future generations while retaining some control over how they are used, and in some cases reducing inheritance tax exposure. They require careful structuring. We work alongside solicitors where trust structures are appropriate to your situation.
Will and lasting power of attorney review
We do not draft wills, but we work closely with solicitors to ensure your financial plan and your will are aligned. We also ensure that lasting powers of attorney are in place, covering both property and financial affairs and health and welfare, so that trusted people can act on your behalf if needed.
Wealth transfer to the next generation
Passing wealth to children or grandchildren requires planning around inheritance tax, capital gains tax, and the financial readiness of the recipients. Junior ISAs, pension contributions on behalf of others, and structured gifting programmes all play a role. We help families build a transfer strategy that works across generations.
The legacy planning sequence.
Good legacy planning is not done in a single conversation. It unfolds over years, with each decision building on the last.
Understand the current position
Total estate value, expected inheritance tax liability, existing wills and nominations. Start with a clear picture.
Address the Finance Act 2026
Review how pensions sit in your estate before April 2027. The most significant change in a generation requires action before the deadline.
Build the gifting plan
Annual exemptions, regular gifts from income, potentially exempt transfers. A structured approach compounds over time.
Review the will and LPAs
An up-to-date will and lasting powers of attorney for property, finance and health. Non-negotiable.
Consider trust structures
Where appropriate, trusts can pass assets efficiently while retaining some control. Requires careful legal and financial coordination.
Plan the wealth transfer
Children, grandchildren, charity. A deliberate transfer plan -- ISAs, JISAs, pension contributions -- over years rather than a lump sum on death.
The Finance Act 2026 changes everything about pension estates.
Until now, keeping wealth inside a pension was one of the most effective estate planning strategies available. Pensions sat outside your taxable estate, meaning they could pass to beneficiaries inheritance tax free. From 6 April 2027, that changes.
Unspent pension funds will be brought within the scope of inheritance tax at 40%. Combined with income tax payable on drawdown by the beneficiary, the effective tax rate on pension wealth passing on death could reach 67% or higher in some circumstances.
For anyone with a substantial pension, this is one of the most significant financial planning changes in a generation. The options available to you now, before April 2027, are considerably broader than those that will be available after it.
Aetas Wealth has been advising clients on the Finance Act 2026 pension inheritance tax changes since the legislation was announced. If you have not yet reviewed your position, a conversation with one of our advisers is the right starting point.
Questions we hear most often about legacy planning.
How much inheritance tax will my estate pay?
Inheritance tax is charged at 40% on the value of your estate above the nil-rate band, currently 325,000 pounds. There is an additional residence nil-rate band of up to 175,000 pounds when a main home passes to direct descendants. Married couples and civil partners can combine allowances. From April 2027, unspent pension funds will also be included in the calculation.
Can I give money away to reduce my inheritance tax bill?
Yes, but with rules. The annual gift exemption allows 3,000 pounds per year free of inheritance tax. Larger gifts may still be subject to inheritance tax if you die within seven years, on a tapering basis. Regular gifts from surplus income can also be free of inheritance tax if structured correctly. Careful documentation is essential.
What happens to my pension after I die from April 2027?
From 6 April 2027, unspent pension funds will be subject to inheritance tax at 40% for the first time, in addition to any income tax payable by the beneficiary on drawdown. This significantly changes how pensions should be used as part of an estate plan. Anyone with a substantial pension pot should review their position before April 2027.
Do I need a will?
Yes. Without a will, your estate is distributed according to the rules of intestacy, which may not reflect your wishes and can cause significant delays and disputes. A will should be reviewed after major life events: marriage, divorce, the birth of children, or significant changes in your financial position.
Read our companion guide: Inheritance tax planning: the main options and how they work.
Start the conversation while you have the most options.
The earlier you plan, the more you can do. A first conversation with Aetas Wealth costs nothing and commits you to nothing. We will look at your estate position honestly and tell you what we think.
Book a free consultation Available via video call or in person. We work with clients across the UK.The value of investments and any income from them can fall as well as rise. You may get back less than you originally invested. Past performance is not a reliable guide to future performance. The levels and bases of taxation may also change.
The information contained above is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. The Financial Conduct Authority does not regulate will writing, tax advice or trust planning.