Planning for the future and the legacy you want to leave

Why planning ahead matters 

Planning around how your wealth should be managed and eventually passed on gives you the opportunity to:

•    Stay in control of your finances and decisions
•    Provide clarity and reassurance for those you care about
•    Protect family wealth from unnecessary tax
•    Make your wishes clearly understood
•    Support future generations and causes that reflect your values

As life expectancy rises and the timing of wealth transfer shifts, having a well thought out plan has never been more important.

 

1. Inheritance Tax planning and how to reduce potential liability 

Inheritance Tax (IHT) affects more people than ever, due to rising property values, frozen allowances and legislative changes. From April 2027, this will also include pension funds, increasing the number of estates affected. Understanding how IHT works is a key part of protecting your estate.
 

What creates an IHT liability? 
Your estate may incur IHT depending on:

•  The total value of your assets
• Who will inherit your assets
• How you use available allowances, such as the nil-rate band and residence nil-rate band
   

Ways to reduce or mitigate IHT
Many people can reduce or even eliminate their IHT bill with structured planning, which may include:

• Making use of annual gifting allowances
• Giving regular gifts from surplus income (a complex exemption that requires tailored advice)
• Investing in assets that offer IHT relief, including those qualifying for Business Relief (BR) - noting these investments are higher risk and not suitable for everyone
• Using trusts to move assets outside your estate
• Life insurance to cover the future IHT bill
• Making charitable donations

💡Well timed planning can help ensure more of your wealth reaches the people and causes you care about most.

 

2. Deciding how and when to pass on your wealth  

Passing on wealth can be emotionally layered, especially where family dynamics differ. Making decisions early helps your intentions be understood and applied fairly. It also supports wider planning around tax efficiency, timing of gifts and the structures that may be most suitable.

Questions to consider:

• Should assets pass directly to children, or skip a generation?
• Do children from different relationships need different types of support?
• Should you gift during your lifetime, or only on death?
• Who should inherit if you have no immediate family?
• Would earlier gifts support family at a more impactful time?
• Are any beneficiaries financially vulnerable or in need of protection?

Creating a fair and intentional plan  
A balanced approach can support your financial goals while navigating different needs. This might involve:

• Providing early financial help to younger generations
• Supporting children equitably while recognising individual circumstances
• Protecting more vulnerable beneficiaries through tailored structures
• Considering how to retain appropriate control over assets while still passing on value

💡Professional advice ensures your intentions are reflected in the most suitable and tax efficient way

 

3. Using trusts and structures to protect family wealth   

Trusts can be a powerful way to pass on assets, protect beneficiaries and reduce IHT. They can support many of the considerations raised earlier by providing structure, control and flexibility, and in many cases act as the primary vehicle for managing how and when wealth is passed on.

 Trusts can:

• Provide long‑term stewardship of assets across generations
• Allow you to set clear rules around access, timing and conditions for beneficiaries
• Protect family wealth from risks such as divorce, financial vulnerability or poor money management
• Offer continuity and stability, particularly in blended or more complex family situations
• Support tax‑efficient planning by moving growth outside of your estate
• Ensure your wishes are carried out consistently, even as family circumstances evolve.

Common trust options include:

• Bespoke trusts designed for complex needs
• Packaged trusts from insurance providers
• Loan trusts, allowing access to original capital while removing growth from the estate
• Discounted gift trusts, offering immediate IHT advantages (specialist advice required)
   

💡 Trusts can also be paired with life insurance to create tax‑free funds for beneficiaries, particularly helpful where IHT needs to be paid quickly.
 

4. Planning for future needs    

Your estate plan should take into account your future objectives as well as that of your beneficiaries

Factors to think about:

• Potential long term care costs
• Ensuring you have enough income in retirement
• How your estate plan should evolve as your circumstances change
• Establishing a power of attorney to ensure decisions reflect your wishes

💡 A good plan supports your financial independence throughout later life, not just the legacy you leave behind.

 

5. Writing or updating your will 

A will remains the cornerstone of any estate plan.

Why a will matters:

• Ensures assets pass to the right people
• Reduces uncertainty and stress for family
• Protects children and vulnerable beneficiaries
• Enables charitable givings

Other key documents:
You may also need:

• Letters of wishes
• Guardianship instructions
• Trust documentation

💡 It is important that you review your will after major life events such as marriage, divorce, new family members or significant asset changes.

 

6. Leaving a meaningful legacy  

Your legacy is not just financial, it reflects your values, your story and the guidance you want to pass on.

Ways to create impact:

• Supporting charities or causes you believe in
• Establishing a family trust or foundation
• Passing on meaningful property or personal items
• Leaving messages or guidance alongside gifts

💡 A legacy plan helps ensure what matters most to you continues into the future.

 

A simple next step

Think about one outcome you want your wealth to achieve - for your family, your future or the wider world. Does your current plan reflect that intention?
If not, a conversation with a Rathbones Financial Planner can help you build a clear, structured plan tailored to your priorities.