New research tells us that delayed estate planning could prove to be a costly decision for affluent families, particularly in conjunction with the scope of changes regarding Inheritance Tax (IHT) and pensions.
Research has found that households in the top 10% of UK wealth could pass on an average of £397,000 more to beneficiaries if they started their estate planning at age 50 rather than age 70.
Across the UK, this was estimated to represent £12.3bn in preventable IHT once changes come into force in April 2027.
Striking figures to say the least, but what they tell us is clear: timing matters.
A stronger start
On average, UK adults believe estate planning should start around the age of 45. In practice, clients begin proceedings in their 60s.
It’s a significant gap, but not a surprising one. Lots of people delay because they feel too young; others find the subject uncomfortable, or assume IHT won’t apply to them; and even more simply say they’ll ‘get round to it later’.
However, the expected policy changes give you the perfect opportunity to bring these conversations forward. With our help, you can get a clearer overview of pension nominations, trusts and other key aspects of your estate, while leaving plenty of time to make adjustments.