Estate planning is one of the most important – and often overlooked – aspects of wealth management. It’s not just about what you leave behind but how you choose to leave it.
A carefully considered estate plan can be the difference between your wealth being preserved for future generations or significantly reduced by inheritance tax.
It is not uncommon to find that an estate that leaves more money to HMRC by way of Inheritance Tax, than it does to each individual beneficiary.
With the right strategies in place, you can take control of your legacy, support your loved ones and ensure your wealth is passed on how you intend it to.
Why Estate Planning Matters
You’ve built significant wealth – now it’s crucial to plan how it’s passed on, not only for your family’s future but to ensure the legacy you intend to leave.
Without a clear estate plan, your assets may not be distributed in line with your wishes – and a significant portion could be lost to inheritance tax.
Estates have various allowances to use. Each person is entitled to the nil-rate band (£325,000) and the residential nil-rate band (£175,000). It is critical to maximise these allowances, especially as residential nil-rate band can be lost on larger estates or where property is not left to direct descendants.
Estate planning allows you to take control of your legacy – to help ensure your loved ones are supported, your family’s future is protected and your values are carried forward. It’s about more than passing on money. It’s about passing on meaning.
Taking Action Early
Starting early gives you more options – not only to reduce the impact on inheritance tax but to structure your estate in a way that evolves with your circumstances.
Many people only think about estate planning later in life but timing matters. The earlier you begin, the more opportunity you have to:
- Make gifts that fall outside your estate under the seven-year rule
- Use your annual gift allowances consistently and effectively
- Put long-term structures in place – such as trusts or family investments companies – while retaining flexibility and control
Importantly, early planning means you’re making decisions from a position of clarity – and with the benefit of time on your side.
Strategies to Consider
Effective estate planning often goes beyond a simple will. The right strategies can help reduce inheritance tax, protect assets and pass on wealth in a controlled and purposeful way. Some of the key options to explore include:
- Trusts
Trusts allow you to transfer assets while retaining control over how and when they are used. They can reduce the value of your taxable estate, protect wealth from divorce or creditors and support beneficiaries according to your wishes. Options include discretionary trusts, bare trusts and interest possession trusts – each with different tax and control implications.
- Family Investment Companies (FICs)
FICs are private companies used to manage and grow family wealth. They offer the ability to separate control from ownership, making them ideal for intergenerational planning. Profits are subject to corporation tax, which is often lower than personal tax rates and dividend structures can be tailored to suit different family needs and timelines.
- Lifetime Gifting
Gifting during your lifetime can significantly reduce your estate’s taxable value. Gifting out of excess income, Annual allowances, small gift exemptions and the seven year-rule can all be used to pass on wealth tax-efficiently – especially when part of a broader, phased strategy.
These are just some options, and there is a wider variety of tools available at your disposal depending on your goals and circumstances.
Charitable Giving
Leaving at least 10% of your net estate to charity can reduce the inheritance tax rate on the remainder from 40% to 36%. Whether through a will, a charitable trust or a donor-advised fund, this can be a meaningful way to align your estate plan with your values while gaining tax advantages.
Each strategy needs to be tailored to your specific circumstances and long-term goals – which is why guidance can be essential.
Keeping Your Plans Aligned with Your Life
Estate planning isn’t something you do once and forget. Your circumstances, family dynamics and financial position will change over time – and your estate plan needs to evolve with them.
Regular reviews ensure:
- Your wills, trusts and other structures remain fit for purpose
- You respond to changes in tax rules and legislation
- Your decisions reflect current family needs and relationships
- Your intentions are clearly documented and legally robust
A well-structured estate plan offers peace of mind – but only if it stays current. Making it part of your broader financial planning process helps to make sure it keeps working in your best interest, year after year.
How Raymond James, Ribble Valley Can Help
At Raymond James, Ribble Valley, we work closely with individuals and families who want to protect their wealth and make sure it’s passed on with intention.
Our personalised estate planning service is designed to:
- Reduce inheritance tax exposure
- Structure wealth for future generations
- Align with your wider financial and lifestyle goals
- Provide clarity, confidence and control at every stage
Whether you’re considering trusts, FICs, gifting strategies or charitable legacies, we’ll work with your legal and tax advisors to put the right framework in place – one that reflects not only your wealth, but your wishes.
If you’d like to start a confidential conversation about estate planning, we’re here to help.
*Risk warning: With investment, your capital is at risk. The information in this blog does not constitute advice or a recommendation, and you should not make any financial decisions based solely on it. If you require personalised advice, we will be happy to assist you.