Estate Planning Guide: Wills, Probate, and Protecting Your Family's Future in 2025/26

If you die without a valid will — known as dying 'intestate' — the law decides who inherits your estate, not you. Under England and Wales intestacy rules, your spouse or civil partner receives the first £322,000 of your estate plus all personal possessions, with the remainder split equally between your spouse and children. If you are unmarried, your partner receives nothing at all, regardless of how long you have lived together (gov.uk).

This can produce outcomes that are sharply at odds with what most people would want. Unmarried partners may be left without a home. Stepchildren may inherit nothing. Friends, charities, or more distant relatives you wished to provide for are entirely excluded. The intestacy rules were designed as a safety net, not as a substitute for proper planning.

Beyond the distribution of assets, dying without a will can also cause significant delays. The process of identifying the correct administrator, gathering documentation, and navigating legal requirements is considerably more complex when there is no will to guide it. For families already dealing with bereavement, these additional burdens can be deeply stressful.

You can write your own will without a solicitor, but the government advises seeking professional help if your situation is complex — for example, if you own property abroad, run a business, or have dependants with additional needs (gov.uk). A poorly drafted will can be challenged in court, potentially overturning your wishes entirely.

To be legally valid, a will must meet three requirements. First, it must be made voluntarily by a person aged 18 or over who is of sound mind. Second, it must be signed by the person making the will (the 'testator') in the presence of two independent witnesses. Third, both witnesses must also sign the will in the testator's presence. Crucially, neither witness — nor their spouse or civil partner — should be a beneficiary of the will, as this would invalidate their gift (MoneyHelper).

Once your will is complete, store it securely. Many people lodge their will with the Probate Service, a solicitor, or a bank. You should also tell your executors where your will is kept. If you need to make changes later, minor amendments can be made using a 'codicil' — an official legal alteration that must be witnessed and signed in the same way as the original will. For significant changes, it is generally better to write a new will entirely, which automatically revokes the previous one.

Key points to cover in your will include: who inherits your assets and in what proportions, who will act as executor (the person responsible for administering your estate), who will be guardian of any children under 18, and any specific gifts of money, property, or possessions. If you have a pension, note that pension death benefits are usually handled separately through a nomination form with your provider rather than through your will — see our guide on what happens to your pension when you die for details.

Probate is the legal right to deal with a deceased person's property, money, and possessions — collectively known as their 'estate'. If there is a will, the executors named in it apply for a 'grant of probate'. If there is no will, the closest living relative applies for 'letters of administration', which serves a similar purpose (gov.uk).

Before applying for probate, you must estimate the total value of the estate. This includes property, savings, investments, vehicles, personal possessions, and any money owed to the deceased, minus any debts such as mortgages, loans, or outstanding bills. Getting accurate valuations is important — HMRC may query figures that appear too low, and undervaluing an estate can result in penalties.

The probate application itself costs £300 for estates valued above £5,000. Estates below this threshold can apply free of charge. Once granted, probate typically takes between 8 and 12 weeks, although complex estates can take considerably longer. During this period, the executor or administrator is responsible for collecting assets, paying debts and taxes, and distributing the estate according to the will or intestacy rules.

If the estate owes inheritance tax, you must report its value to HMRC within one year of the death using form IHT400. Importantly, some or all of the IHT owed must usually be paid before probate is granted, which can create cash-flow difficulties — particularly where the estate's value is tied up in property. HMRC charges late payment interest at 7.75% from 9 January 2026, so prompt action is essential (gov.uk).

Inheritance tax is charged at 40% on the value of an estate above the available threshold. The standard <a href="/posts/the-325000-inheritance-tax-trap-what-to-do-before-5-april-while-the-threshold">nil rate band</a> is £325,000 — and it has been frozen at this level since 2009, with the freeze now extended until at least 5 April 2030. This prolonged freeze, combined with rising asset values, means a growing number of estates are liable for IHT (gov.uk).

The residence nil rate band (RNRB) provides an additional £175,000 allowance when a home is passed to direct descendants — children, grandchildren, or stepchildren. This is also frozen until 5 April 2030. Together, the nil rate band and RNRB give an individual a potential threshold of £500,000. For married couples and civil partners, unused allowances can be transferred to the surviving partner, creating a combined effective threshold of up to £1,000,000.

However, the RNRB begins to taper for estates worth more than £2,000,000, reducing by £1 for every £2 above this threshold. For very large estates, the RNRB can be lost entirely. It is also worth noting that the RNRB only applies when the family home is left to direct descendants — it does not apply to gifts to siblings, nieces, nephews, or friends.

For a comprehensive breakdown of current rates and planning strategies, see our detailed inheritance tax guide for 2025/26. You can also explore our tax hub for broader guidance on UK tax planning.

Effective estate planning can significantly reduce the amount of inheritance tax your beneficiaries pay. Several legitimate strategies are available, and they work best when implemented well in advance.

Gifting during your lifetime. You can give away up to £3,000 per tax year free of IHT (the 'annual exemption'). Small gifts of up to £250 per person per year are also exempt, as are wedding gifts up to certain limits. Larger gifts can also escape IHT provided you survive for seven years after making them — these are known as 'potentially exempt transfers'.

Using trusts. Placing assets in trust can remove them from your estate for IHT purposes, although trust taxation is complex and professional advice is essential. Trusts can be particularly useful for protecting assets for vulnerable beneficiaries or controlling how and when assets are distributed.

Writing life insurance in trust. A life insurance policy written in trust pays out directly to your beneficiaries without forming part of your estate, meaning it falls outside the scope of IHT. This is one of the simplest and most effective planning tools available. Our guide on life insurance and inheritance tax explains how this works in practice, and you can learn more about policy types in our life insurance guide.

Charitable giving. Gifts to registered charities are exempt from IHT. Additionally, if you leave 10% or more of your net estate to charity, the IHT rate on the remaining taxable estate drops from 40% to 36% — a meaningful saving on larger estates.

Pension planning. Pensions have historically sat outside the IHT net, making them a highly tax-efficient way to pass on wealth. However, the government has announced changes that will bring unused pension funds into the scope of IHT from April 2027. This makes it even more important to review your overall estate plan — see our guide on pension death benefits for current rules.

Estate planning errors can be costly and difficult to undo after death. Here are the most frequent mistakes and how to avoid them.

Not making a will at all. As discussed, intestacy rules are blunt instruments that rarely match individual wishes. The cost of a simple will — typically £150 to £300 through a solicitor — is trivial compared to the potential consequences of not having one.

Failing to update your will after major life events. Marriage automatically revokes a previous will in England and Wales (unless the will was made in contemplation of that marriage). Divorce does not revoke a will, but it does remove your ex-spouse as a beneficiary. If you have separated but not divorced, your estranged spouse could still inherit. Review your will after any significant life change: marriage, divorce, the birth of a child, or a substantial change in your financial circumstances.

Incorrectly witnessing the will. If a beneficiary or their spouse witnesses the will, that beneficiary's gift is void. Ensure your two witnesses are genuinely independent — they cannot benefit from the will in any way.

Underestimating the estate's value. Many people assume their estate falls below the IHT threshold without accounting for life insurance payouts (if not held in trust), pension lump sums, or the full market value of their property. A proper valuation is essential for accurate planning.

Not considering the cash-flow impact of IHT. IHT on property-heavy estates often needs to be paid before probate is granted, while the property cannot be sold until after probate. This catch-22 can force executors to take out loans or sell assets quickly at below market value. Planning ahead — for example, through life insurance in trust — can prevent this problem.

Estate planning does not need to be overwhelming. Breaking it down into manageable steps makes the process far more approachable.

Step 1: Take stock of your assets and liabilities. List everything you own — property, savings, investments, pensions, insurance policies, vehicles, and valuable possessions — and subtract any debts. This gives you a rough estate value and tells you whether IHT is likely to be a concern.

Step 2: Make or update your will. Ensure it reflects your current wishes, names appropriate executors and guardians, and is properly witnessed and signed. Store it securely and tell your executors where to find it.

Step 3: Review your IHT exposure. If your estate exceeds the nil rate band (£325,000 individual, or up to £500,000 with the residence nil rate band), consider the planning strategies outlined above. Professional advice is particularly valuable here.

Step 4: Check your life insurance and pension nominations. Ensure life insurance policies are written in trust where appropriate, and that your pension expression-of-wish forms are up to date.

Step 5: Keep records organised. Maintain a clear file of important documents — your will, insurance policies, pension details, property deeds, bank accounts, and investment records. This will make the probate process far simpler for your executors.

Step 6: Review regularly. Estate planning is not a one-off task. Review your arrangements every three to five years, or whenever your circumstances change significantly.

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Estate planning involves complex legal and tax considerations, and you should seek professional advice tailored to your individual circumstances before making decisions.