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Estate Planning

Estate Planning: A Complete Guide for Families in England and Wales

How wills, trusts, powers of attorney and inheritance tax planning can fit together, considered around your circumstances.

12 min read · Written by the Fairchild Oldfield team · Last reviewed: June 2026

£1,000,000
A married couple may be able to pass on up to this much before inheritance tax, by combining both partners' nil-rate and residence nil-rate bands where a home passes to children.
Illustration based on gov.uk, as at June 2026, subject to change. Every estate is different.

Estate planning is the process of organising what happens to your money, property and possessions during your lifetime and after you die, in a way that reflects your wishes and considers the tax position of your estate.

For most families in England and Wales it combines a will, sometimes one or more trusts, a lasting power of attorney, and a plan for inheritance tax. This guide explains how those parts fit together and where it can be worth taking advice. Figures are current as at June 2026 and are subject to change.

What is estate planning?

Estate planning is arranging your affairs so that your assets pass to the people and causes you choose, with as little confusion, delay and unnecessary tax as the rules allow. In England and Wales it usually brings together a valid will, any trusts that suit your circumstances, a lasting power of attorney, and consideration of inheritance tax. It is general planning for everyone with assets, not only the very wealthy.

Why estate planning matters

Without a plan, the law decides what happens, and the result may not match your wishes. If you die without a valid will, the rules of intestacy set out who inherits, and unmarried partners receive nothing under those rules (gov.uk, intestacy rules, as at June 2026). A plan can also reduce delays at probate, help provide for vulnerable family members, and address a future inheritance tax bill before it arises.

  • Control. A will and any trusts set out who benefits, and when.
  • Protection. Planning can help provide for a spouse, children from a previous relationship, or a vulnerable beneficiary.
  • Tax. Considered use of allowances and reliefs may reduce a future inheritance tax liability, depending on circumstances.
  • Certainty. A lasting power of attorney lets someone you trust act for you if you lose capacity.

The building blocks

The main parts of an estate plan

Not everyone needs all of them. The right combination depends on your assets, your family and your wishes.

Wills

Set out who inherits, who looks after children, and who administers your estate. The foundation of almost every plan.

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Trusts

Let trustees hold assets for beneficiaries, with more control over how and when they receive them.

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Inheritance Tax Planning

Considered use of allowances, gifts and reliefs that may reduce a future inheritance tax liability.

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Lasting Power of Attorney

Lets people you choose make decisions for you if you lose mental capacity, covering finances or health.

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Care Fees Planning

Considered planning that may help limit the impact of later-life care fees, subject to your circumstances.

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Probate

The process of administering an estate after death. A clear plan can reduce delay and cost for your family.

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The numbers

How inheritance tax fits in

Inheritance tax is a tax on the estate of someone who has died, and in many cases it is the main reason families plan ahead. The standard rate is 40%, charged only on the part of an estate above the available tax-free thresholds (gov.uk, as at June 2026, subject to change). Married couples and civil partners can usually pass assets to each other tax free, and unused thresholds can transfer to the survivor.

Allowance or rateLevel (June 2026)
Nil-rate band£325,000
Residence nil-rate bandUp to £175,000
Standard rate40%
Reduced rate (10%+ to charity)36%
Taper threshold£2,000,000

Source: gov.uk/inheritance-tax. Thresholds are fixed until the end of the 2030-31 tax year (5 April 2031) (gov.uk), subject to change.

The frozen threshold

£325,000

The nil-rate band is frozen until 2030, while many estate values continue to rise. As a result, more families may become liable to inheritance tax over time, which is why some choose to consider planning earlier.

A worked example (illustration only). A married couple own a home worth £400,000 and other assets of £300,000, so £700,000 in total. On the first death, assets passing to the surviving spouse are generally exempt. On the second death, the estate may have access to two nil-rate bands (£325,000 each) and, where the home passes to children, two residence nil-rate bands (£175,000 each), up to £1,000,000 in total. In this illustration the £700,000 estate could fall within those combined thresholds. Every estate is different, the residence band tapers above £2,000,000, and the figures change, so this is general information rather than a calculation for your situation.

Estate planning is more than just a will

A will is the foundation, but on its own it has limits. A will only takes effect on death, it becomes public once probate is granted, and it does little by itself to address mental capacity, care costs or inheritance tax. This is why estate planning looks at the documents and the numbers together. In our view, considering the tax position alongside the drafting tends to produce a more coherent plan than treating them separately.

A will decides who gets what. The wider plan considers how they get it, when, and how much tax and delay sits in the way.

When should you start estate planning?

There is no single right age to start, but many people review their arrangements after a major life event. Marriage, divorce, having children, buying a home, receiving an inheritance, or a change in health are common prompts. Because the rules and your circumstances change, estate plans are generally reviewed periodically rather than written once and left. Starting earlier tends to give more options.

  • Buying a first home or a larger property
  • Marriage, civil partnership, separation or divorce
  • The birth of children or grandchildren
  • Receiving or expecting an inheritance
  • A diagnosis or change in health

How it works in practice

A clear, considered process

I

Discovery

A confidential review of your family, assets, debts and wishes.

II

Considered plan

Options are set out, with any fees agreed before work begins.

III

Implementation

Documents are prepared and, where needed, submitted for registration.

IV

Ongoing review

The plan is revisited as the rules and your circumstances change.

Estate planning in Scotland and Northern Ireland

This guide describes the law of England and Wales. The other UK nations differ in important ways. Scotland has its own succession law, including legal rights that can entitle a spouse and children to a fixed share of an estate, and it uses confirmation rather than a grant of probate. Northern Ireland has a separate but broadly similar system to England and Wales. If your estate touches more than one jurisdiction, it can be worth taking advice in each.

Frequently asked questions

What is estate planning in the UK?

Estate planning is arranging what happens to your assets during your lifetime and after death, so they pass to the people you choose with as little delay and unnecessary tax as the rules allow. In England and Wales it commonly combines a will, any suitable trusts, a lasting power of attorney, and inheritance tax planning. The right approach depends on your circumstances.

Is estate planning the same as making a will?

No. A will is one part of estate planning, and usually the foundation, but the two are not the same. Estate planning can also involve trusts, a lasting power of attorney, lifetime gifts and inheritance tax planning. A will deals mainly with what happens on death, while a wider plan can also address mental capacity, care costs and tax during your lifetime.

How much does estate planning cost?

Costs vary widely depending on what is involved, from a straightforward will to more detailed trust and tax planning. Many firms set out fees before any work begins, and a single fixed cost is rarely meaningful without knowing your circumstances. It can be worth asking for clear, agreed fees in writing and comparing what is included before you proceed.

Do I need a solicitor for estate planning?

Not always, though some elements benefit from qualified input. Simple wills can be made without a solicitor, but trusts, tax planning and complex family situations often involve a solicitor, a STEP practitioner, or an FCA-authorised financial adviser. Where the stakes are high, many people choose to take professional advice rather than rely on a template.

How can estate planning reduce inheritance tax?

Estate planning may reduce a future inheritance tax bill by making use of available allowances, exemptions, lifetime gifts and reliefs, depending on circumstances. It cannot guarantee a particular outcome, and the rules change. Because mistakes can be costly, planning of this kind is generally discussed with a qualified professional who can consider your full position before anything is put in place.

When should I review my estate plan?

Many people review their plan every few years and after any major life event, such as marriage, divorce, a new child, a property purchase, or a change in health. Because thresholds and rules can change, a plan written years ago may no longer reflect either your wishes or the current law. Regular reviews help keep it current.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at June 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.

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