Too many people in the UK still shy away from estate planning, as evidenced by research indicating that 56 per cent of adults in the country do not have a will in place. 

This only falls slightly, to 53 per cent, for those aged 50 to 64, indicating that many people are sticking their heads in the sand when it comes to what will happen to their assets when they pass away. 

But, of course, a will is only one element of an estate plan. There are many approaches you can use to help protect the wealth you have accumulated throughout your lifetime to pass on to your family and ensure they continue to reap the benefits of what you’ve sown.

When should you start estate planning?

The reality is that the sooner you start estate planning, the better. This is because an estate plan is not an activity you do once and then ignore. It is a living, breathing plan that can adapt as your life changes. 

Many people wait until their later years before they start thinking about what will happen to their wealth once they pass away. While it is certainly better to engage with estate planning services in your 60s than not to do so at all, it is even more helpful if you start at a younger age.

One of the reasons for starting earlier is that you can make your wishes clear and ensure you have a plan in place before there could be questions over your mental capacity. 

It is a confronting fact, but the number of people with dementia in the UK is expected to rise to 1.4 million by 2040, which means if you leave this process too late you may not be in a position to take control of your estate planning yourself. 

I share this not to scare you, but to highlight a genuine risk that many people overlook. 

What are the benefits of early estate planning?

There are many advantages to starting your estate planning as soon as possible, chief among them that it gives you control over your future. 

Estate planning is an overwhelmingly empowering process and I see my clients go from feeling nervous at the prospect to feeling both relieved and in more control of their finances once they have created an estate plan with me. 

Other benefits of estate planning include:

• Being in a position to adapt your approach to new legislation around taxation.
• Being able to maximise the money you give tax-free to your family and loved ones.
• Reducing your inheritance tax bill by making smart financial choices. 

Maximising the amount you can give to members of your family and loved ones as tax-free gifts can be an important part of an estate plan. 

Under current rules, when you give someone money, that sum becomes exempt from inheritance tax provided you survive for at least seven years after making the gift. 

Of course, there are more complex rules surrounding this process than merely surviving seven years, and there are annual limits on how much of your wealth you can give away and in what form. 

This is why working with an experienced estate planner is so important. I’m here to talk you through your estate planning options at any time, simply book a Clarity Call to get started.