People often put off estate planning until later in life, which is understandable. However, doing so could come at a significant financial cost.
Research in Today’s Wills & Probate found that starting estate planning at 50 rather than 70 could make a substantial difference. For the wealthiest 10% of UK families, starting 20 years earlier could mean passing an average of £397,000 more to loved ones.
This is largely because some of the most effective Inheritance Tax (IHT) mitigation strategies depend on decisions and actions made years in advance. This gives you time to make gifts, meet certain time-sensitive requirements, and adjust your plans as your circumstances change.
And the need for planning is becoming increasingly important.
FT Adviser reports that IHT receipts reached a record £7.7 billion in 2025/26 and the OBR projects they will rise to £14.5 billion by 2030/31.
So, read on to discover four reasons you should start estate planning today.
1. You have more time to make use of gifting
Giving away some of your wealth during your lifetime is one of the simplest ways of reducing the value of your estate for IHT purposes.
There are several gifting allowances available, but the main one is the annual exemption. This allows you to give away £3,000 (2026/27) each tax year without the gift being included in the value of your estate for IHT.
Married couples and civil partners can combine their individual allowances. This means that over 30 years, you and your partner could give away around £180,000 using your combined annual exemptions.
However, this requires early and careful planning, so if you want to use gifts as part of your IHT mitigation strategy, it’s a good idea to start sooner rather than later.
If you make gifts that exceed your allowances, they will typically be treated as potentially exempt transfers (PETs). There is no immediate IHT charge when a PET is made, and provided you survive for seven years, the gift will normally fall outside your estate for IHT purposes.
If you die within seven years, IHT may become payable on the gift, although taper relief can reduce the amount due depending on how long you survive after making it.
This also highlights why starting early matters, as the more time you have, the more opportunity there is for larger gifts to fully fall outside your estate.
2. You have time to meet the conditions for Business Relief
Business Relief (BR) is another estate planning tool that can offer up to 100% IHT relief on certain qualifying business assets or investments.
It’s important to note that BR is not just for business owners, and investors can also benefit from it by investing in certain businesses and schemes.
However, the assets generally need to have been owned for at least two years before they qualify. That means investing in BR schemes is not something you can necessarily decide to do at the last minute.
So, if you are considering BR investments as part of your estate planning, starting early gives you more time to meet the relevant conditions.
3. You can change your plans as your life changes
Estate planning is not a case of writing a plan once and forgetting about it.
Your wealth may change, or your family circumstances may be very different in 10 years. You might buy or sell a property, start or leave a business, receive an inheritance, or simply change your mind about how you want your wealth to be distributed. Tax legislation can change too. But starting early means you have time to respond to all of this.
Rather than trying to make a series of major decisions when you are older, unwell, or facing an unexpected change in circumstances, you can put a plan in place and revisit it when needed. This can also reduce the risk of mistakes.
Regular reviews with a financial planner can help you identify when your arrangements need to change and keep your estate plan aligned with your wider financial goals.
4. It can reduce the chance of familial disputes
When you make estate planning decisions late, there are fewer opportunities to discuss your wishes and make sure everyone understands what you intend to happen.
Of the advisers surveyed in the Today’s Wills & Probate article, 7 in 10 said they had seen family disputes arise because estate planning had been delayed.
Starting early gives you more time to speak to your loved ones and let them know exactly what to expect and why you have made certain decisions.
This can help reduce the chances of familial disputes, both while you are still alive and after you die.
Get in touch
Our team of independent financial advisers in Lewes is here to support you in building an estate plan that reflects your wishes and circumstances, no matter what stage you are at in life.
To find out more, please get in touch by emailing us at financial@barwells-wealth.co.uk or by phone on 01273 086 311.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
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