By Bronwyn White, Senior Associate Solicitor & Notary Public at Parfitt Cresswell Solicitors
Estate Planning is not just for the wealthy or elderly. It should be considered by those with complex family structures or dependents, those with specific medical or care wishes, parents of minor children, those with property and business owners. What are the key considerations?
People often ask why they should use a professional to get their Will drafted rather than purchase a DIY kit. The problem with DIY is that this oversimplifies what is, for many, a deeply personal and complex process. Writing a Will is not simply about producing a document – it’s about navigating a thoughtful journey to determine how your estate should be managed and passed on.
This journey forms part of a broader Estate Planning process. Essentially, Estate Planning is about ensuring your assets and responsibilities are handled according to your wishes, both during your lifetime and after your death. It goes beyond a Will and includes wealth preservation strategies, tax mitigation, incapacity planning, and the safeguarding of loved ones to ensure that your wishes are carried out.
As part of the Estate Planning process you should ensure you:
- Protect your family from unnecessary financial or emotional strain – this might be particularly prevalent if you do not have family or if your family members are likely to disagree when administering your estate in the event of your death or if you lose capacity. Having a professional to plan for managing relationships may be helpful;
- Preserve wealth by mitigating tax exposure through targeting strategies. It is sensible to have collaborative meetings between your financial advisors, accountants and lawyers to ensure that all are working together towards the same goals to manage your affairs in the most tax efficient and seamless manner. This may include trust planning, including Trusts that create an Immediate Post Death Interest (also known as Life Interest Trusts) or Discretionary Trusts, either in your lifetime or on your death;
- Have clarity and control to reduce the risk of future disputes. Disputed Wills in particular often arise as a result of a lack of planning; and
- Plan for incapacity, ensuring your affairs can be handled if you’re no longer able to do so.
Individuals have increasingly multifaceted affairs, with complex family structures, cross-border considerations and diverse asset structures. These could include business assets, property interests and international investments. If you have assets in multiple jurisdictions then it would be sensible to have specialists in each of these. Specialists can advise on the relevant legal and tax regimes so that a holistic approach to your affairs can be applied, taking into account matters like double taxation and the reliefs that may apply.
Estate Planning requires the interpretation of these structures together with tax considerations and legacy preferences, and regulatory changes. Professionals offer a strategic view to this, helping clients balance generosity and control while navigating exposure to Inheritance Tax, Capital Gains Tax and legislative shifts – such as recent and anticipated changes to the UK non-dom regime and Inheritance Tax thresholds.
As these structures are frequently shaped over time by specialist financial advisers to align with unique goals, risk profiles and long-term intentions, it follows that the management of your estate should also be kept under frequent review. It is dynamic process, requiring continual review and expert guidance.
With the right structures and strategies, you can protect your legacy, support loved ones and leave a meaningful impact across generations.