Have you got your estate planning in hand?

It’s one of those things that’s easy to put off - like sorting the attic or finally organising the garage. But estate planning isn’t just for the wealthy or the retired; it’s a vital step for anyone who wants to make sure their wishes are clear, their loved ones are protected, and their affairs are handled smoothly when the time comes. 

Whether you’re thinking about writing your first will, setting up a power of attorney, or simply reviewing what you already have in place, getting your estate planning in order brings peace of mind. It’s not just about assets - it’s about clarity, legacy, and care. So, is your plan as solid as it should be? 

Key steps in estate planning 

Estate planning is about more than just distributing assets after death - it’s about making sure your wishes are followed, and your loved ones are taken care of. Here are the essential steps you need to take to create a thorough and effective estate plan. 

Write a will

A will is the foundation of any estate plan. It sets out how your assets will be divided, names guardians for children, and specifies your wishes regarding your funeral and burial. Without a will, the distribution of your estate may be governed by the state or country’s laws, which might not align with your preferences. These are also known as the Intestacy rules. A will also helps prevent confusion or disputes among family members after your passing, ensuring your intentions are clear. 

What happens if you die without a legal will in the UK? Find more information of the Intestacy rules by reading our helpful article.  

There are some key considerations. Firstly, decide who will inherit your assets, such as family members, friends and charities. You should also appoint a guardian for children or dependents. Furthermore, name an executor to ensure your wishes are carried out properly. Lastly, make provisions for specific gifts, like heirlooms and jewellery. 

Appoint Powers of Attorney 

A Power of Attorney (POA) allows someone you trust to make decisions on your behalf if you become incapacitated - whether medically or financially. This ensures that if you’re unable to act for yourself, someone you trust will manage your affairs according to your wishes. 

Types of POA include a medical Power of Attorney, which appoints someone to make healthcare decisions if you're unable to do so. It also incorporates a financial Power of Attorney, in which you choose someone to manage your financial affairs, such as paying bills, managing investments, and filing taxes. 

A POA can be temporary or permanent, and it can be used in various situations, such as for illness, injury, or even if you’re traveling and unavailable. It’s essential to choose someone trustworthy, as they’ll have significant control over your affairs. 

Consider a trust 

A trust is a legal arrangement where assets are held and managed by a trustee on behalf of a beneficiary. Trusts can be a useful tool for controlling how your money and property are used after you pass away. They can also help reduce inheritance tax and avoid the probate process, which can be lengthy and costly. 

There are many benefits of a trust. Firstly, you have control and can specify exactly how and when assets are distributed, for example staggered payments to beneficiaries over time. You also have privacy. Unlike a will, a trust is not subject to public probate proceedings, keeping your financial affairs private. Furthermore, trusts are tax efficient. Certain types of trusts, such as living trusts, can help minimise estate taxes, which can significantly reduce the tax burden on your heirs. Lastly, they also provide protection for vulnerable beneficiaries. If you have dependents with special needs or those who might not manage money well, you can use a trust to ensure they are financially supported in a way that’s protected from mismanagement. 

Review beneficiaries 

Not all assets are governed by your will. Pensions, life insurance policies, and retirement accounts often have designated beneficiaries. These designations take precedence over what’s written in your will, so it’s important to make sure these are up-to-date. If you’ve experienced life changes, such as marriage, divorce or the birth of a child, etc, it’s crucial to update beneficiary information to reflect your current wishes. 

Review and update beneficiaries for life insurance policies, retirement accounts, pensions, and other financial accounts. Also, trusts and wills to ensure all assets align with your overall estate plan. Lastly, consider the impact of taxes and how each asset will pass to your heirs. 

Plan for inheritance tax 

Inheritance tax can take a significant portion of your estate, especially if you’re leaving behind a large inheritance. Tax laws change frequently, and it’s important to understand how your estate may be impacted and what options are available to reduce your tax liability. 

From April 2027, pensions will no longer be exempt from inheritance tax. Therefore, beneficiaries may have to pay tax on inherited pension savings - reducing the amount they receive. You need to consider this in your estate planning.  

Strategies to minimise inheritance tax include making gifts during your lifetime; gifts given to family members while you’re still alive may reduce the taxable value of your estate. 

Another way is to set up a trust. Certain types of trusts, such as irrevocable trusts, can help reduce the value of your taxable estate. 

Lastly, utilise tax exemptions and reliefs. Many regions offer exemptions for spouses or charities, or reliefs for family-owned businesses or farms. 

Consulting with a financial planner – such as Reeves Independent - or tax adviser can help you understand the best strategies for minimising tax liabilities while maximising the benefits for your heirs. 

Talk to your loved ones 

Having open and honest conversations with your family about your estate plans is one of the most important steps you can take. While it can feel uncomfortable, these conversations can help avoid misunderstandings, reduce conflicts, and make sure everyone knows your intentions. Clear communication can also ensure your loved ones feel supported during what is already a difficult time. 

Discussion points should include your wishes for your assets and any specific requests. Furthermore, they should also include guardianship arrangements for children or dependents and your healthcare preferences in the event of incapacity. Another top of conversation should be funeral and burial preferences, if any. Crucially, explain the reasoning behind your decisions, particularly if there are any large or controversial aspects, such as disinheritance or the distribution of valuable items. 

It’s important to keep these conversations ongoing, especially if you make changes to your estate plan over time. 

By taking these key steps, you ensure that your estate is handled according to your wishes, protecting your loved ones from unnecessary stress and confusion. Estate planning can be complex, but taking the time to set up the right legal documents and ensuring clear communication can make all the difference for your peace of mind and for those you leave behind. 

Here are the top three reasons why creating a will is essential.

Common estate planning myths

Estate planning can seem complicated, but many of the myths surrounding it are simple misunderstandings. Here are some of the most common myths about estate planning - and why they’re not true. 

 “I’m too young for a will.” 

Age doesn’t determine whether you need a will - your assets and responsibilities do. If you own anything of value, even small items, such as a car or a bank account, or have dependents who rely on you it’s crucial to have a plan in place. Accidents can happen at any age, and without a will, your estate may be handled in ways you would not want. A will gives you control over who gets what and ensures that your loved ones are taken care of. 

“Everything will just go to my partner.” 

This myth often arises in situations where a couple lives together without formalising their relationship through marriage or civil partnership. If you’re not legally married or in a civil partnership, your partner may not automatically inherit your estate. Laws vary by jurisdiction, but in many places, unmarried partners don't have the same legal rights as spouses. Without a will, the state decides who gets your assets - which may not be your partner. Don't leave things to chance - a will can ensure that your partner is taken care of. 

“I’ve got time.” 

While it's easy to think there's plenty of time, life can be unpredictable. Unexpected events such as accidents or illnesses can happen at any time. Having your estate plan in place provides peace of mind knowing that, no matter what happens, your wishes will be honoured. The sooner you start, the less stress you'll face if the unexpected occurs. Having a plan in place isn’t just about preparing for the worst but ensuring that your loved ones don’t have to deal with unnecessary complications later on. 

“It’s only about money.” 

Many people think estate planning is solely about distributing wealth, but it’s so much more than that. Estate planning also involves making decisions about healthcare, guardianship for children, and how you want to be cared for if you're incapacitated. It’s a chance to express your wishes clearly, from funeral preferences to who will look after your pets. It's not just about assets - it's about creating a comprehensive plan that addresses all aspects of your life, ensuring that your loved ones and your values are protected. 

“Once I’ve written it, I’m done.” 

Your estate plan is not a ‘set it and forget it’ document. Life changes - marriages, divorces, births, deaths, and financial changes - can all impact your estate planning needs. Revisiting your estate plan regularly, such as every few years, or after significant life events, ensures it reflects your current wishes and circumstances. A will or trust that worked for you in your 20s may no longer fit your needs in your 40s or 50s, so it’s essential to keep your documents up to date. Always make sure your estate plan evolves with you. 

In short, don’t let these myths keep you from taking important steps to protect yourself, your assets, and your loved ones. Estate planning isn’t just for the wealthy or the elderly - it’s for everyone who wants to ensure their wishes are known and followed. 

Eliminate the stress with a Power of Attorney — check out our article for a more detailed explanation. 

Estate planning checklist: Have you covered the essentials? 

Do you have a legally valid will? 

A will is the cornerstone of any estate plan. It ensures your money, property, and possessions go to the right people - not just according to law, but according to your wishes. Without one, your estate could be distributed in ways you wouldn’t have chosen, causing stress and confusion for loved ones at an already difficult time. A valid will is one that’s correctly written, signed, and witnessed - and ideally reviewed regularly. 

Have you appointed Powers of Attorney?

 Life is unpredictable. If you were to lose the ability to make decisions for yourself - temporarily or permanently - having lasting Powers of Attorney (LPAs) in place means someone you trust can step in. One type covers your financial affairs, and the other deals with your health and care decisions. Without them, your loved ones could face delays and legal obstacles just to act on your behalf. 

Have you named guardians for your children?

If you have children under 18, it’s crucial to name legal guardians in your will. This gives you control over who would look after them if something happened to you. Without clear instructions, the decision could be left to the courts - which may not reflect your wishes or your children’s best interests. 

Have you reviewed your pension and life insurance beneficiaries? 

Many people don’t realise that pensions and life insurance policies typically sit outside your will. That means they’re distributed according to the beneficiaries you've named with the provider - not necessarily who you’ve listed in your will. It’s important to check and update these regularly, especially after major life changes like marriage, divorce, or having children. 

Are your digital assets accounted for? 

In today’s digital world, your online presence can hold real value - whether it’s sentimental, financial, or both. Make a plan for your digital assets, including email accounts, social media, cloud storage, online banking, and cryptocurrency. Leaving guidance, securely, on access and wishes ensures these aren’t lost, overlooked, or misused. 

Do your loved ones know your wishes? 

Even the best-laid plans can fall short if no one knows about them. Have open, honest conversations with the people closest to you about your decisions and why you’ve made them. It can reduce conflict, clear up misunderstandings, and give everyone peace of mind that your affairs are being handled the way you intended. 

Have you spoken to a professional for advice? 

Estate planning involves legal, financial, and sometimes emotional complexities. Speaking to a qualified professional ensures your plans are robust, up-to-date, and reflect your personal circumstances. From writing your will to navigating tax rules or setting up trusts, expert advice gives you confidence - and protects your loved ones from avoidable stress. 

Estate planning isn’t morbid - it’s empowering. It’s not about dwelling on the worst-case scenarios; it’s about stepping into a place of clarity, care, and responsibility. Taking the time to plan ahead means taking control of your legacy, protecting your loved ones, and ensuring your wishes are respected, no matter what life brings. It’s a deeply personal act of love - a way of saying, “I’ve thought this through, so you don’t have to worry.” Whether you’re just starting out, reviewing an old will, or thinking about more complex arrangements like trusts or inheritance tax planning, now is always the right time to begin. The peace of mind that comes with knowing your affairs are in order isn’t just for you - it’s a lasting gift to those you care about most. 

At Reeves, we work with experts in estate planning and are here to guide you every step of the way. Book a free review with us today to help put your mind at ease and secure the future of you and your loved ones.

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