Life stages / Leaving a Legacy
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 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
The big questions at this life stage.
- 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
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, and building a plan that reduces the bill efficiently. This includes 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 logic of using a pension as an estate planning tool. We help you understand the impact 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 effectively and correctly documented.
Trust planning
Trusts can be an effective way to pass assets to future generations while retaining some control, and in some cases reducing inheritance tax exposure. They require careful structuring. We work alongside solicitors where trusts are appropriate.
Will and LPA 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 property and financial affairs and health and welfare.
Wealth transfer to the next generation
Passing wealth to children or grandchildren requires planning around inheritance tax, capital gains tax, and the readiness of the recipients. Junior ISAs, pension contributions on behalf of others, and structured gifting all play a role.
The sequence
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 2027 change
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. 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.
Common questions
Questions we hear most often.
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. There is an additional residence nil-rate band of up to £175,000 when a main home passes to direct descendants. Married couples can combine allowances. From April 2027, unspent pensions are also included.
Can I give money away to reduce my inheritance tax bill?
Yes, but with rules. The annual gift exemption allows £3,000 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 if structured correctly.
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. 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 delays and disputes. A will should be reviewed after major life events.
The first conversation is free
Start the conversation while you have the most options.
A first conversation with Aetas Wealth costs nothing and commits you to nothing. We will look at your situation honestly and tell you what we think.
Book a free consultation →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.