When it comes to passing on wealth, hindsight is no substitute for foresight. In this exclusive IFA Magazine article, we’re grateful to law firm Collyer Bristow’s private wealth and trusts specialists for providing their legal lens on succession and estate planning. It’s a useful reminder for advisers on how timely, well-structured advice can turn uncertainty into clarity for clients and their families. From cross-border complexities to cashflow pitfalls and the fast-approaching changes to business property relief, Aidan Grant and Rachel Pang explain why legal oversight and early planning are key to advisers helping protect clients’ generational wealth transfer.
Why Early Succession Planning Matters
Many individuals only begin thinking seriously about succession planning after their spouse has passed away. At that point, they may suddenly find themselves with substantial wealth to manage and face daunting questions, most commonly how to structure and protect that wealth for the next generation. These are not easy decisions to confront at a vulnerable time. Addressing these questions together as a couple can provide clarity, enhance tax efficiency, and give families greater peace of mind.
Certainty through a Will
One of the first questions clients ask is why succession planning should be done early. Having a valid Will ensures that wealth passes to intended beneficiaries, reducing the risk of disputes and avoiding the rigidity of the intestacy rules on a premature death. It can also bring considerable inheritance tax advantages. For example, the spouse exemption (unlimited, provided there is no mismatch in long-term residence status) and the residence nil rate band (currently £175,000, subject to certain conditions) are not always available if wealth passes by intestacy. Many high-net-worth clients hold assets in multiple jurisdictions and advising on cross-border planning becomes more complex, meaning addressing it early becomes even more important. For example, clients may need multiple Wills to ensure administrative probate convenience, but then ensuring those Wills interact effectively and tax-efficiently requires careful advice.
Planning with Control and Protection
Early discussions allow clients to put structures in place to safeguard family wealth. Trusts, for example, can give trustees discretion over timing and circumstances of distributions — an important tool to protect assets against risks such as divorce or third-party claims. Beginning sooner allows clients to take advantage of longer-term tax saving strategies, such as the seven-year gifting rule, use of surplus income exemptions, or maximising the use of the nil rate band, all of which can reduce the eventual inheritance tax burden.
Making Wishes Clear
Conversations about succession, while sometimes difficult, have lasting value. By sharing their wishes openly and setting them out in a letter of wishes where a trust is involved, clients can guide trustees when judgments are required, helping to ensure that family members and dependants are provided for appropriately.
Anticipating Cashflow Needs
Another common issue is cash flow. Where wealth is tied up in property, probate delays (currently often 6–8 months) can leave families without readily available funds. Without planning, this can create financial pressure during an already difficult period. Simple steps such as maintaining a joint bank account, arranging a life insurance policy with the spouse as beneficiary, or holding property as joint tenants (so it automatically passes to the survivor) can dramatically ease liquidity issues. By contrast, property held as tenants in common will only pass under the terms of a Will and therefore requires probate.
Business Succession
For business-owning clients, proactive succession planning is especially important. Early discussions should cover who will step in as director, what formalities are required, and how shares should be transferred or held in trust. Discussing the availability of business property relief from inheritance tax is also more important than ever, given the impending reduction in the relief on 6 April 2025. This should spur all business owners to make sure that their planning is as up-to-date and tax-efficient as possible, in case there are steps they could take now that they will lose next year.
Building the Right Support Network
Estate planning is rarely a single-discipline exercise. Involving a trusted team of advisers— legal, accounting, and IFAs — helps clients make more informed decisions and ensures continuity when significant life events occur.
Regular Reviews
Finally, circumstances change, and Wills or estate plans can quickly become outdated. Clients should review their planning every five years, or sooner, following major life events. Clear communication now prevents surprises later and helps families feel secure about the future.
By Aidan Grant, Partner (Private Wealth), and Rachel Pang, Associate (International Trusts, Tax & Estate Planning) at Collyer Bristow
