Planning for the Future: A Beginner’s Guide to Estate Planning in the UK

Estate planning is not just for the wealthy — it’s for anyone who wants peace of mind about how their assets and loved ones will be cared for in the future.

In this beginner’s guide, we’ll explain what estate planning is, why it matters, and how to get started — even if you don’t think you have “an estate.”

What Is Estate Planning?

Estate planning is the process of organising your affairs so that your wishes are followed if you die or become unable to make decisions.

This can include:

• Deciding who inherits your property and assets
• Appointing someone to make decisions for you if you're incapacitated
• Minimising inheritance tax
• Setting up protections for your children or dependents

In short: estate planning helps you stay in control, even when you’re not here.

Who Needs Estate Planning?

You don’t need to be rich to have an estate — if you own anything of value or have people who rely on you, estate planning matters.

Estate planning is especially important if:

• You own property
• You’re married or in a civil partnership
• You’re divorced or remarried
• You have children or stepchildren
• You run a business
• You want to avoid family disputes
• You want to reduce tax liability on your estate

What Should Be Included in an Estate Plan?

Here are the core components of a well-rounded UK estate plan:

1. A Legally Valid Will

Sets out how your assets should be distributed and can name guardians for your children.

2. Lasting Power of Attorney (LPA)

Appoints someone to make decisions on your behalf if you lose capacity.

Types of LPA:

• Health & Welfare
• Property & Financial Affairs

3. Trusts

Used to manage and protect assets for beneficiaries (like children or vulnerable adults), and to reduce inheritance tax.

4. Letter of Wishes

Not legally binding, but can provide guidance for executors and trustees on your preferences.

5. Funeral Plans

You can specify your wishes (burial, cremation, ceremony type) or pre-pay to reduce stress for loved ones.

6. Asset Inventory

Keep a record of your property, bank accounts, pensions, insurance policies, and digital assets.

Common Estate Planning Mistakes

Avoiding these can save your loved ones time, stress, and legal issues:

• Dying without a Will (intestacy): Your estate will be divided by UK law — not your wishes
• Not keeping your Will up to date after marriage, divorce, or children
• Naming unsuitable executors or trustees
• Not considering inheritance tax
• Not setting up an LPA early enough

Inheritance Tax: What You Need to Know

In the UK:

• You can leave up to £325,000 tax-free (the “nil-rate band”)
• Anything above this is taxed at 40%
• Married couples and civil partners can combine their allowances
• You may qualify for an extra £175,000 if passing on a home to children/grandchildren

Trusts, charitable donations, and gifting during your lifetime are common ways to reduce inheritance tax.

How to Start Estate Planning in the UK

Here’s a simple step-by-step approach:

1. List your assets: Property, bank accounts, pensions, possessions
2. Define your goals: Who do you want to benefit? Any risks you want to manage?
3. Create or update your Will
4. Set up a Power of Attorney
5. Consider a Trust if needed
6. Minimise inheritance tax: Get advice if your estate exceeds the threshold
7. Store your documents securely — and tell someone where they are
8. Review your plan regularly — or after any major life event

Do You Need a Solicitor?

For simple estates, you may be able to create a Will online or with a Will writer. But for anything more complex, or if you want to include tax planning or trusts, working with a qualified solicitor or estate planning professional is strongly recommended.

Make sure they’re regulated and ideally members of:

• The Society of Trust and Estate Practitioners (STEP)
• The Law Society
• The Society of Will Writers

How Much Does Estate Planning Cost?

Typical Cost Range:

• Simple Will£100 – £300
• Mirror Wills (couples)£150 – £500
• Will + Trust£300 – £800+
• Lasting Power of Attorney£150 – £500 per LPA
• Full Estate Planning Bundle £500 – £2,000+

Prices vary depending on complexity and location. Comparing quotes helps ensure value and transparency.

Get Peace of Mind — Start Today

Planning your estate is one of the most important acts of care you can make for your loved ones.

Dos helps you compare the best-rated Wills & Estate Planning specialists near you — so you can get the legal help you need, at the right price.

• Transparent pricing
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