Estate planning

Estate planning is essentially the decision-making and documenting of how your assets, finances and other affairs should be managed during your lifetime and distributed after your death.

There are several ways to approach protecting and passing on family wealth, depending on your circumstances. Wills, trusts, lifetime gifts and wider succession planning can all play a role, but the right approach will depend on the type and value of your assets, your family circumstances and your tax position.

Each document serves a different purpose. A Will sets out what should happen to your estate after death, a trust can provide a structure for holding and managing assets, and an LPA allows someone you trust to make certain decisions on your behalf during your lifetime if you lose mental capacity. Together, they can form important parts of a wider estate plan.

Inheritance tax planning should be considered as part of your wider estate plan rather than in isolation. Depending on your circumstances, this may involve reviewing your Will, considering trusts and lifetime gifts, and taking advice on how your assets are owned and intended to pass to beneficiaries.