Introduction
Throughout this six-part series, the essentials of inheritance tax (IHT) have been outlined, from foundational strategies to advanced mitigation techniques, including Business Property Relief (BPR). In this final instalment, the spotlight turns to one of the most powerful yet often overlooked tools in estate planning: the Will. This section explores:
- What a Will is
- What it can really achieve
- Why timing and maintenance are critical
What Is a Will?
A Will is a legal document that sets out how an individual wishes their money, property, and possessions to be distributed after death. When structured correctly, it can significantly reduce IHT, safeguard assets, and preserve wealth across generations.
What Can a Will Really Do?
From a tax planning perspective, a Will is a strategic instrument, one that enables the precise deployment of key reliefs and exemptions. A well-drafted Will can:
- Maximise Spouse Exemptions (outlined in Part 1): Delay IHT on first death while preserving allowances (NRB and RNRB) for the surviving spouse. This can potentially double the IHT-free amount to £1 million, leaving more for children or grandchildren.
- Utilise Trusts for Control and Protection As discussed in Part 3, trusts offer a way to manage and protect assets while maintaining flexibility and control.
- Enable Charitable Giving for Lower IHT Rates Leaving 10% or more of the estate to charity reduces the IHT rate on the remainder from 40% to 36%, benefiting both meaningful causes and the family’s financial future.
- Preserve Business Property Relief (BPR) With BPR limits changing from April 2026, the Will becomes a vital document for:
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- Ensuring business assets are passed to qualifying beneficiaries
- Avoiding accidental loss of relief due to poor drafting
Why Timing and Maintenance Matter
One of the most common misconceptions is that a Will is a “once and done” document. In reality, it must be kept current and aligned with evolving tax strategies and personal objectives.
AMS recommends reviewing Wills every 3–5 years, or sooner if any of the following apply:
- A significant change in assets (e.g. business sale, inheritance, major investment)
- Major life events (e.g. marriage, divorce, birth of grandchildren, bereavement)
- Significant tax law changes (e.g. April 2026 BPR cap and frozen thresholds)
Without regular review, even the most sophisticated planning can unravel through inaction.
Next Steps
Thanks for joining this six-part series on Inheritance Tax planning. For further discussion on any of the topics covered, please book a call with our Private Client team using the link here.
The future of your estate begins with the decisions you make today. Let AMS help you make them wisely.
