When most people think about estate planning, they think about writing a Will.
While Will writing is one of the most important steps you can take, it’s only one part of a much wider estate planning strategy.
As changes to Inheritance Tax (IHT) continue to evolve—particularly with most unused pension funds expected to fall within the scope of Inheritance Tax from April 2027—many families are taking the opportunity to review their Estate planning, Financial planning and Legacy planning arrangements.
That review shouldn’t just include your Will.
It should also include protection insurance, trusts, Lasting Powers of Attorney and how these work alongside the advice you’re receiving from your Independent Financial Adviser (IFA).
Estate Planning Is About More Than a Will
A professionally drafted Will remains the cornerstone of good estate planning. It gives you control over who inherits your estate and can help ensure your wishes are carried out after your death.
However, estate planning is about much more than deciding who receives your assets.
It’s about considering how your estate will be administered, whether there could be an Inheritance Tax liability, whether your beneficiaries may need immediate access to funds and whether the right legal and financial arrangements are in place to protect your family.
That’s where protection can become an important part of the conversation.
Can Life Insurance Help with Inheritance Tax Planning?
Many people associate life insurance with protecting their family if they die during their working years or while they still have a mortgage.
What is often less well known is that, in the right circumstances, Whole of Life insurance can also play a role in Inheritance Tax planning.
Unlike term life insurance, a Whole of Life policy is designed to pay out whenever the policyholder dies, provided the policy remains in force. When the policy is appropriately written into trust, the proceeds may be paid directly to the beneficiaries without forming part of the deceased’s estate, potentially helping them meet an Inheritance Tax bill more quickly.
This can provide valuable liquidity at a time when families may otherwise need to wait for probate or consider selling assets to raise funds.
It’s important to remember that this isn’t the right solution for everyone, which is why regulated financial advice is essential before putting any protection policy in place.
Bringing Estate Planning and Financial Planning Together
One of the things I enjoy most about my role is working alongside Independent Financial Advisers.
An IFA will advise on pensions, investments and protection, while I help clients ensure their Will, trusts, Lasting Powers of Attorney and wider estate planning arrangements support those recommendations.
When legal planning and financial planning are joined up, families are often in a much stronger position.
Rather than looking at each area in isolation, we’re able to create an estate plan that reflects a client’s wishes while helping to protect the people they care about most.
Is It Time to Review Your Estate Plan?
The upcoming pension changes are prompting many people to revisit their Inheritance Tax planning, but they’re also a useful reminder to review your wider estate planning.
Ask yourself:
✓ Is my Will up to date?
✓ Have I reviewed my potential Inheritance Tax position?
✓ Do I have appropriate protection in place?
✓ Are any life insurance policies written into trust where appropriate?
✓ Do I have Lasting Powers of Attorney?
✓ Does my estate planning still reflect my family’s circumstances today?
Good estate planning isn’t about focusing on one document or one financial product.
It’s about making sure your Will, estate protection, protection insurance, trusts and financial planning all work together.
Because the best estate plans don’t just protect your assets.
They help protect the people you leave behind.
