Estate Planning isn’t just about a Will… it’s about the Tax bill too

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Published: 21/05/2026 By Hannah Duncan

When people talk about estate planning, the conversation usually starts with writing a Will. But in reality, the bigger picture is tax, how much might be lost, and whether it could have been reduced with a bit of planning.

So what’s the real issue?
Put simply, it’s this:
When does the tax get paid, and how much is it?
Because assets can pass on in a few different ways:
  •  After death
  • During your lifetime
  • Or through Trusts
And each one comes with its own tax consequences.

Gifting during your lifetime sounds easy… but
Yes, giving assets away can reduce inheritance tax if you live for 7 years. But here’s the catch:
  • You could still trigger capital gains tax straight away
  • And there’s often no cash to cover the bill
So, what feels like a generous, straightforward decision can come with an unwelcome surprise.

Doing nothing has a tax benefit too
Holding onto assets until death isn’t always a bad thing from a tax point of view. Why?
  • There’s no CGT to pay
  • The value is effectively reset for your beneficiaries
But of course, inheritance tax may still apply. It’s a balancing act and there’s no one-size-fits-all answer.

And what about Trusts?
Trusts can be really useful but they’re not simple. They can:
  • Trigger tax charges upfront
  • Create ongoing admin and reporting
They work best when they’re part of a wider plan not a quick fix.

A few things people often miss
  • Some assets (like jointly owned property) don’t even go through your Will
  • Without a plan, tax reliefs can go unused
  • And problems tend to show up when it’s too late to fix them
So what should you do?
You don’t need to have everything figured out.
But it’s worth asking:
  • “Could my estate face more tax than it needs to?”
  • “Are my current plans still doing what I think they are?”
Estate planning doesn’t have to be complicated but ignoring it can be costly. If you’re not sure whether your current plans are working as efficiently as they could be, it’s often worth having a quick conversation. It might be simpler to improve things than you expect.
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