Putting off your estate planning for another year could cost you more than you think – and might even run into six-figure sums.

Recent research has revealed that starting your estate planning at age 50 could make a sizeable difference to the wealth you leave to your beneficiaries.

Here are the highlights worth noting:

• Making use of IHT-saving strategies at age 50 could help you pass an average of £397,000 more to your loved ones than waiting until you’re 70.
•  Delaying estate planning could cost UK families a total of £12.3 billion in “preventable Inheritance Tax (IHT)” when unused pensions come into scope for IHT in 2027.
• Even under current rules, the total cost of preventable IHT could be a sizeable £7.9 billion.
• Under current IHT rules, starting at 50 instead of 70 could help you pass on £258,000 more on average. [1]

These figures may be the wake-up call you need to start thinking about your estate plan.
 
Besides the startling IHT savings you could make by planning early, here are three other headline reasons more people are starting estate planning sooner.

1. Frozen Inheritance Tax rates and thresholds

In 2026/27, the standard rate of IHT is 40%.

This applies to any portion of your estate that exceeds the: 

• Nil-rate band of £325,000 – set at this level in April 2009 and currently frozen until 2031.
• Residence nil-rate band of £175,000 – applies to the value of your main residence, as long as you leave your property to your children or grandchildren. This has remained at the same level since April 2020 and is currently frozen until 2031.

Combined, the two primary thresholds allow you to pass up to £500,000 to beneficiaries tax-free.

For those who are married or civil partners, planning as a couple could allow you to leave up to £1 million without paying IHT (in the 2026/27 tax year).

Frozen thresholds, combined with increasing property values and growing assets, alone may well push your estate into IHT territory.

2. Your pension savings could tip you over the Inheritance Tax edge

Although pensions have long been exempt from IHT charges, that’s due to change.

From 6 April 2027, if you leave your pension to another beneficiary and your estate exceeds the £325,000 nil-rate band, your pension savings may become subject to IHT, although benefits paid to a spouse or civil partner will remain exempt.

If you think your pension savings could mean your beneficiaries may have to pay IHT on their inheritance, the sooner you act the better.

Read more: Do Pensions Play a Part in Your Estate Plan? Here’s Why You May Need to Rethink Your Strategy

With time on your side, you can understand all the options that might help your loved ones retain more of their inheritance. 

3. Business and Agricultural Relief has been capped
 
Before April 2026, thanks to 100% Business Relief (BR) and Agricultural Relief (AR), you could pass qualifying business and agricultural assets to beneficiaries free of IHT.

However, that privilege has been replaced with a watered-down relief.
 
Now, only the first £2.5 million of qualifying assets is exempt from IHT, and any excess benefits from 50% relief.
 
The £2.5 million cap is shared across assets qualifying for BR and AR on a pro-rata basis, which means beneficiaries may be liable to pay 20% IHT on assets transferred above £2.5 million.

For spouses, any of the £2.5 million unused at the first death can be transferred to the surviving partner.

Importantly, you still have the option to pay IHT due on qualifying BR and AR assets by equal annual instalments over 10 years, interest-free.

Get in touch

We’re here to help you understand all your options and write an estate plan that works for you and your beneficiaries, so more of your wealth ends up with the people you care about.

To find out more, please email info.wp@titanwh.com or call us on 0800 048 0150.

Please note

This article is for information purposes only and does not constitute personal financial advice. If you are unsure about whether a particular course of action is suitable for you, we recommend that you seek independent financial advice.

The value of investments and the income from them can fall as well as rise, and you may get back less than you originally invested. Past performance is not a reliable indicator of future performance. Tax treatment depends on individual circumstances and may be subject to change in the future. Tax and estate planning outcomes are not guaranteed.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
 
The Financial Conduct Authority does not regulate estate planning.

Titan Wealth Planning Ltd is authorised and regulated by the Financial Conduct Authority (FCA reference number: 574458). Registered address: 101 Wigmore Street, London, W1U 1QU, United Kingdom