What is estate planning? A guide for UK families
09 September 2026
Estate planning is often associated with later life or significant wealth. In reality, it can be relevant to almost anyone who owns property, savings ,investments or other assets – and wants a say in what happens to them in the future.
Going through the process helps to put a clear plan in place for how you would like your financial affairs to be managed after your death. It can also include arrangements for someone to make decisions on your behalf if you become unable to do so. A good estate plan brings these different elements together, helping to provide clarity for you now and making things easier for your family later.
What is estate planning?
Estate planning is the process of understanding what you own, deciding who you want to benefit and putting the right arrangements in place to reflect those wishes. Your estate may include:
Property
Cash and savings
Investments
Personal possessions and valuables
Certain insurance policies
Business interests
A will is usually an important starting point. It sets out how you would like certain assets to be distributed after your death and allows you to appoint executors to manage your estate. For parents, a will can also be used to nominate guardians for young children and make arrangements for the care of pets. However, estate planning goes beyond writing a will and, depending on your circumstances, could also involve pension nominations, gifting, trusts and putting a Lasting Power of Attorney in place.
The aim is to ensure these arrangements work together rather than being considered in isolation.
From April 2027, unused Defined Contribution pension funds will form part of an individual’s estate for Inheritance Tax (IHT) purposes. This could have significant implications for families and their estates so it is important to review finances regularly to ascertain IHT position.
Tax Treatment
Tax Treatment
The tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Why does estate planning matter?
One of the main benefits of estate planning is retaining greater control over what happens to your assets. Without a valid will, your estate will generally be distributed according to the applicable rules of intestacy, which may not always reflect how you would have chosen to divide your wealth.
Having a clear plan can also reduce uncertainty and administration for family members. Dealing with someone's financial affairs after their death can already be difficult, so having important documents, assets and wishes clearly organised can make the process simpler. Estate planning can also help you plan for events that may happen within your lifetime. A Lasting Power of Attorney, for example, can allow someone you trust to make decisions about your finances, health or welfare if you are no longer able to do so yourself.
Estate planning is not just for the wealthy
A common misconception is that estate planning advice is only relevant to high-net-worth families. In practice, many people build significant assets over their lifetime without necessarily considering themselves wealthy. A family home, pension, savings and investments can together form a substantial estate.
Estate planning can therefore be relevant whenever you have assets and people you want to provide for. You may want to support a spouse or partner, make provision for children, help grandchildren in the future or leave money to a charity or cause that matters to you. The value of an estate plan is not determined by the size of your wealth. It is about making sure your affairs reflect your intentions.
How does estate planning work?
If you are wondering how estate planning works in practice, the first step is usually to take stock of your finances. This means creating a clear picture of your assets and liabilities, including property, savings, investments, pensions, business interests and debts.
The next stage is to think about what you want your wealth to achieve. Who would you like to benefit from your estate? Are there particular assets you want to leave to certain people? Do you want to help your children or grandchildren during your lifetime? How much wealth will you need to retain to maintain your own lifestyle and fund your retirement?
If gifting forms part of your plans, it is also important to establish how much you can afford to give away without affecting your own financial security. You can then consider which assets may be most appropriate to gift, including whether they currently provide an income and the potential tax implications of transferring them. This can help to avoid unintended financial or tax consequences.
Once those objectives are clear, you can consider which arrangements may be appropriate. Different elements may require financial, legal or tax expertise, which is why professional estate planning advice can be valuable when bringing everything together.
When should you start estate planning?
There is no age at which estate planning needs to begin. Instead, it can make sense to start once you have financial responsibilities, assets or people you want to provide for.
Certain life moments may prompt you to put a plan in place or review an existing one. These can include:
Getting married or divorced
Buying a property
Having children or grandchildren
Approaching retirement
Receiving an inheritance
Experiencing a significant change in wealth
Your priorities are also likely to change over time. Earlier in life, you may be focused on protecting young children or building wealth, while later you may be thinking more about retirement, gifting and how your remaining assets should eventually be passed on. Estate planning should therefore be viewed as an ongoing process rather than something you complete once.
Tax Treatment
Tax Treatment
The tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Bringing your financial plans together
One of the challenges with estate planning is that different areas of your finances can easily become disconnected. You may have a will prepared separately, pensions with different providers and investments managed elsewhere. Each may be suitable individually but considering them in isolation can make it harder to understand how they contribute to your wider goals. A joined-up approach looks at these elements together.
Cashflow forecasting can help by looking at your expected income, spending and assets over time. This can give you a clearer view of what you may be able to give away without compromising your own financial security. It can also help you consider potential future costs, including long-term care needs, and ensure these remain affordable when making decisions about gifting or passing on wealth. Bringing these elements together can also reduce administration and give you and your family a clearer understanding of the plan.
How Killik & Co can help with estate planning
At Killik & Co, our Wealth Planning team can help you understand what you may need for your own future, how much wealth you may be able to pass on and how this fits alongside your investments, pensions and wider family goals. Our Planners use cashflow analysis to assess how affordable gifting may be for an individual, taking into account their future income, spending and financial needs. This can offer an invaluable perspective for families looking to pass on wealth while maintaining their own financial security.
Where specialist support is needed, our Tax and Trustee Services team can also assist with areas including wills, trusts, Lasting Powers of Attorney and estate administration, helping to bring the different elements of your estate plan together.
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