Estate & inheritance tax planning in Harlow, Essex & Hertfordshire
See what your estate is worth, what inheritance tax could be due, and how gifting, trusts and life cover could change the picture for your family.
Inheritance tax is charged at 40% on the part of an estate above the available allowances. With pensions due to come into estates from April 2027, more families are asking how much could be payable and what they can do about it.
This information is intended only as guidance and is based on our understanding of current legislation and HMRC practice, which may change. For advice on your specific circumstances, please get in touch.
Important — the risks
The performance of your investments is subject to risk. Its performance may fluctuate based on movements in the market and economic conditions. Capital is at risk. Currency movements may also affect the value of investments. You may get back less than you originally invested.
Past performance is not a reliable indicator of future performance. Tax treatment is based on an individual’s unique circumstances and may be subject to change.
The Financial Conduct Authority does not regulate some forms of tax and estate planning.
Estate planning starts with a clear picture
Estate planning is about deciding what you would like to happen to your money and property, making sure you keep enough for your own lifetime, and passing on the rest as efficiently as the rules allow. Inheritance tax is often a large part of that, especially now that more families are affected as property values rise and allowances stay frozen.
We start by mapping your estate. Our planning system draws a one-page picture of everything you own: property, pensions, savings, investments, business interests and life cover, with debts taken off, split between you, your partner, anything held jointly and anything already passed to children. It is often the first time a family has seen it all in one place.
How our inheritance tax modelling works
- An estimate of inheritance tax, now and from April 2027. We estimate the tax that could be payable on your estate under today’s rules, using the nil-rate band, any transferable nil-rate band from a late spouse or civil partner, and the residence nil-rate band where your home goes to direct descendants. We then show how that could change from 6 April 2027, when most unused pension funds are due to be included in the estate.
- Gifts you have already made. We record past gifts, the date each one falls outside the seven-year window, and what the position could look like if death came sooner.
- “Before” and “after advice” side by side. We set out the possible recommendations, such as gifts, trusts, life cover in trust or changes to how pensions are drawn, and show an estimated inheritance tax figure before and after them, with the estimated difference.
- Linked to your cash flow plan. Your cash flow plan shows how your wealth might change over the years ahead and whether you can afford to give money away without running short yourself. That is the question we always answer first.
The estimate is a simplified illustration, not a formal calculation of tax due. Some reliefs and rules, such as business and agricultural relief, the reduced rate for leaving money to charity and the detail of trust charges, are considered separately where relevant.
Please remember: a cash flow model is a projection, not a guarantee. It is based on assumptions about investment growth, inflation, tax rules, spending and life expectancy, and real life will turn out differently. We use it to support our advice and we revisit it as things change.
Gifting
Giving during your lifetime can reduce the value of your estate, and many people enjoy seeing their family benefit now. Some gifts are exempt straight away, such as the £3,000 annual exemption, small gifts and regular gifts made out of surplus income. Larger gifts to individuals usually fall outside your estate if you survive for seven years. We can model a series of gifts over several years, show when each one drops out of the seven-year window, and check that your own cash flow can support them.
Trusts
Trusts can help you pass on wealth while keeping some control over who benefits and when. Options include gift trusts, loan trusts and discounted gift trusts, often used with investment bonds, as well as discretionary trusts. Different trusts have different tax treatment, including possible entry, ten-year and exit charges for some, so the right choice depends on your circumstances and how much access you need to keep. Trust and tax advice is usually given alongside a solicitor or accountant.
Pensions and inheritance tax from April 2027
Pensions have often been the last thing people draw on, because unused funds could usually be passed on free of inheritance tax. From 6 April 2027, most unused pension funds and death benefits are due to be included in the value of an estate. Income tax may also apply to what beneficiaries receive in some cases, for example where the member dies aged 75 or over. This makes the order in which you use your pensions, ISAs and other savings worth reviewing. See our pension advice page and our guide to income drawdown.
Life cover written in trust
Rather than reducing the tax bill, some families choose to plan for it. A whole of life policy written in trust can provide a lump sum to help pay inheritance tax, so that beneficiaries do not need to sell the family home or investments quickly. For couples this is often arranged on a joint life, second death basis. Find out more about protection.
Wills and lasting powers of attorney
A will makes sure your estate goes where you want it to and can make good use of allowances such as the residence nil-rate band. Lasting powers of attorney let people you trust make decisions if you are unable to. We will check whether these are in place and up to date as part of your plan; the documents themselves should be prepared by a solicitor or qualified will writer.
Inheritance tax advice near you
We are independent, whole-of-market financial advisers based in Roydon, near Harlow, working with families in Harlow, Hertfordshire and Essex, and across the UK. Meetings can be in person or by video.
Related guides and pages
- Cash flow planning
- School fees planning
- Whole of life assurance
- Pension advice
- Investment advice
- The value of retirement planning
- Book a free initial chat
- Contact us
The Financial Conduct Authority does not regulate some forms of tax and estate planning, including will writing and some trust and tax advice.
Tax treatment depends on your individual circumstances and may be subject to change in future. Information on this page is based on our understanding of current legislation and HMRC practice in October 2026, which may change. Inheritance tax estimates are illustrations, not a guarantee of the tax that will be payable.
The value of investments and any income from them can fall as well as rise, and you may get back less than you invest.
Frequently asked questions
Quick answers — and you can always just call us on 0333 011 5550.
How much can I leave before inheritance tax is due?
Each person has a nil-rate band of £325,000. A residence nil-rate band of up to £175,000 may also apply when your home passes to children or grandchildren, but it is reduced for estates worth more than £2 million. Unused allowances can usually pass to a surviving spouse or civil partner. Inheritance tax is normally charged at 40% above the available allowances.
Will my pension count towards my estate?
From 6 April 2027, most unused pension funds and pension death benefits are due to be included in the value of an estate for inheritance tax. Pensions left to a spouse or civil partner should still benefit from the spouse exemption. This could change how and when it makes sense to draw on pensions and other savings.
What is the seven-year rule for gifts?
Many larger gifts to individuals become free of inheritance tax if you live for seven years after making them. If you die within seven years, the gift may be counted against your nil-rate band, and taper relief may reduce any tax on the gift itself where death is between three and seven years after it. Some gifts, such as most transfers into trust, are treated differently.
Which gifts are exempt straight away?
Common exemptions include the £3,000 annual exemption (with one unused year carried forward), small gifts of up to £250 per person, certain wedding gifts, gifts between spouses or civil partners, and regular gifts made out of surplus income that do not reduce your standard of living. Conditions apply to each.
How can life insurance help with inheritance tax?
A whole of life policy written in trust can pay out on death to help your beneficiaries meet an inheritance tax bill, often on a joint life, second death basis for couples. Writing the policy in trust is intended to keep the payout outside your estate. Cover depends on your health and premiums must be maintained.
Do you write wills or lasting powers of attorney?
We will talk with you about whether your will and lasting powers of attorney are in place and up to date, because they are an important part of estate planning. These documents should be prepared by a solicitor or a qualified will writer.
Is inheritance tax planning regulated by the FCA?
The Financial Conduct Authority does not regulate some forms of tax and estate planning, such as will writing and some trust and tax advice. Investments and insurance we recommend as part of a plan are regulated.
Let’s talk about your estate.
Book a free, no-obligation chat. We’ll look at what you have, what you would like to pass on and the options open to you.