Frequently asked questions

What are the 7 steps in the estate planning process?

The estate planning process typically involves the following seven steps:

1. List your assets and liabilities

Identify what you own (property, savings, pensions, investments) and any outstanding debts.

2. Decide who you want to benefit

Clearly define who should inherit your assets and in what proportions.

3. Write a Will

A Will ensures your wishes are legally recorded and followed after your death.

4. Consider trusts where appropriate

Trusts can help control how assets are passed on, protect beneficiaries, or support tax planning in certain circumstances.

5. Plan for taxes

Review allowances, exemptions, and strategies to reduce potential inheritance tax where possible.

6. Plan for Medical & Financial decisions

Appoint attorneys to carry out your wishes and manage your estate by using Lasting Power of Attorneys for Health & Welfare as well as Financial decision.

7. Review and update regularly

Estate plans should be updated after major life events such as marriage, divorce, children, or changes in wealth. 

Is it better to have a will or a trust in the UK?

For anyone with money or assets, it is essential to have a Will. Whether you also need a Trust depends on your personal and family circumstances.

A Will and a Trust serve different purposes, and in many cases they are used together, not instead of each other.

Will:

A  Will ensures your assets are passed on exactly as you intend after your death. 

If you die intestate (without a Will), your estate is distributed according to UK intestacy rules, which follow a strict legal hierarchy.

Trust:

A Trust is a legal entity formed by a person (Settlor) for passing on assets (money or property) to their beneficiaries. 

The settlor also appoints their trusted people (called Trustees) to manage the Trust governed by the rules mentioned in the Trust deed.

Trusts are commonly used to:

• Control how, when and to whom the assets are passed on
• Protect assets from any third party claims raised due to bankruptcy and divorce
• Plan for Inheritance tax or estate planning objectives

So, a Will is essential for almost everyone, whereas a Trust is optional and only appropriate if you have complex family arrangements, or specific tax or asset protection goals.

Can the Next of Kin override the executor of the will?

In the UK, next of kin cannot override the executor of a valid will. The executor named in the Will has the legal authority and responsibility to administer the estate and carry out the deceased’s wishes.

While next of kin cannot simply replace or overrule an executor, they may raise concerns if the executor is not acting in line with the will. In such cases, the matter must be resolved through the courts, not by family decision alone.

What if there is no Will?

If someone dies without a Will, there is no executor. Instead, an administrator is appointed under the rules of intestacy, and next of kin may have priority in applying for this role.

Wills

A well-drafted Will ensures your assets are passed on exactly as you intend. Dying without one can cause unnecessary hardship and irreversible loss for your loved ones.

What this means for you

Lasting Power of Attorney (LPA)

Health & Welfare and Financial Affairs LPAs allow someone you trust to make important decisions on your behalf if you lose capacity.

Trusts

Trusts provide long-term protection for family wealth against third-party claims, disputes, and future uncertainties.

How to plan for inheritance?

Inheritance planning is relevant both when you expect to receive an inheritance and when you plan to pass assets on to others.

In the UK, inheritance tax (IHT) can significantly reduce the value of an estate if no planning is done in advance.

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Why is inheritance planning necessary?

Unlike some countries where no inheritance or estate tax applies, the UK charges inheritance tax at 40% on the value of an estate above available allowances.

Inheritance tax is usually payable within six months of death, and the responsibility to settle the bill falls on the executors or family, often at a difficult time.

Without planning, this can result in:

• A large and unexpected tax bill
• Financial pressure on the family
• Assets needing to be sold quickly to raise funds

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Benefits of planning ahead

• Careful and timely inheritance planning can help to:
• Reduce the amount of inheritance tax payable
• Ensure the family is financially prepared for any tax liability
• Protect family assets from being sold unnecessarily to fund tax payments
• Pass on wealth in a more controlled and efficient way

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How to plan for inheritance

Inheritance planning usually starts with understanding the potential size of your estate and any future tax exposure.

This involves reviewing:

• Assets, savings, pensions, and investments
• Liabilities and ongoing expenses
• How your estate may change over time

A key part of planning is understanding how and when assets are used during retirement, as this affects the eventual estate value. Withdrawals can come from different sources such as pensions, ISAs, savings, or investment structures, and the order in which these are used can make a difference.

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Understanding inheritance tax allowances

In the UK, individuals currently have:

• A nil rate band of £325,000
• A residence nil rate band of up to £175,000 (subject to conditions)

The value of the estate above these allowances may be subject to inheritance tax, making early planning particularly important for larger estates.

Inheritance planning is not just about tax — it is about protecting family wealth, reducing stress, and ensuring assets pass on as intended. Starting early gives more flexibility and more options than leaving planning until later in life.

The Impact

A properly structured estate plan protects your family during emotionally difficult times, reduces conflict, and ensures your affairs are managed smoothly and according to your wishes.