Securing your family’s future through estate planning is one of the most important steps you can take — and understanding what it actually costs is the first step. At MP Estate Planning, founded by Mike Pugh, we provide straightforward, transparent guidance on estate planning services in England and Wales for 2026.
The truth is, estate planning costs far less than most people assume — and far less than the consequences of not planning at all. A professionally drafted will might cost a few hundred pounds. A lifetime trust to protect your family home starts from £850. When you consider that inheritance tax (IHT) is charged at 40% above the nil rate band, or that residential care fees currently average £1,200–£1,500 per week, the cost of proper planning is remarkably modest by comparison.
We’re here to help you understand exactly what you’ll pay, what you’ll get, and why it matters. As Mike Pugh says: “Trusts are not just for the rich — they’re for the smart.”
Key Takeaways
- A basic will costs £150–£600; a lifetime trust starts from £850 — a fraction of potential IHT bills or care fees.
- Costs depend on the complexity of your estate, the type of planning needed, and professional fees.
- Clear, published pricing is available — MP Estate Planning is the first and only company in the UK that actively publishes all prices on YouTube.
- Expert advice is essential for navigating inheritance tax, probate delays, and care fee risks.
- Comprehensive estate planning covers wills, trusts, Lasting Powers of Attorney, and ongoing asset protection.
Understanding Estate Planning Costs
Understanding the costs associated with estate planning is essential for making informed decisions. Estate planning isn’t just about what happens after you die — it’s about protecting your family, your home, and your wealth right now, and making sure everything passes to the right people in the most tax-efficient way possible.
What is Estate Planning?
Estate planning is the process of putting legal arrangements in place to control how your assets are managed during your lifetime and distributed after your death. At its simplest, this involves making a will. More comprehensive planning includes establishing lifetime trusts to protect your home and other assets, setting up Lasting Powers of Attorney (LPAs) so trusted people can make decisions if you lose mental capacity, and structuring your affairs to reduce your inheritance tax liability.
In England and Wales, estate planning draws on over 800 years of trust law — England literally invented trusts. The tools available are sophisticated and well-established, but they do need to be set up correctly by a specialist.
“Not losing the family money provides the greatest peace of mind above all else. Estate planning sits at the intersection of trust law, tax law, and property law — which is why many families benefit from working with a dedicated specialist alongside their solicitor.”
Why is Estate Planning Important?
Estate planning is crucial because without it, the law decides what happens to your assets — and the law’s default position rarely matches what families actually want. If you die without a will (known as dying “intestate”), the intestacy rules in England and Wales dictate distribution in a rigid order that may exclude partners, stepchildren, or others you’d want to provide for.
Beyond wills, proper estate planning addresses threats that most families don’t think about until it’s too late. Here are the key reasons estate planning matters:
- Ensures your assets pass to the people you choose, not according to rigid intestacy rules
- Reduces or eliminates the 40% inheritance tax charge — the nil rate band has been frozen at £325,000 since 2009, dragging ordinary homeowners into the IHT net
- Protects your home from being sold to fund residential care fees (currently averaging £1,200–£1,500 per week)
- Bypasses probate delays — during probate (which can take 3–12 months, longer with property), all sole-name assets are frozen and your family cannot access them
- Shields family wealth from divorce, remarriage, bankruptcy, and creditor claims
To illustrate the typical costs associated with different estate planning services in England and Wales, consider the following:
| Service | Average Cost |
|---|---|
| Basic Will Writing | £150–£300 |
| Complex Will Writing (including will trusts) | £300–£600 |
| Lifetime Trust Establishment | From £850 (straightforward trusts) |
When you compare these one-off costs to the potential financial damage of not planning — 40% IHT on everything above the nil rate band, care fees that can consume an entire property in just a few years, or family disputes that cost tens of thousands in legal fees — the value of estate planning becomes immediately clear. This is a specialist area where dedicated expertise makes a real difference, which is why many solicitors work alongside specialist estate planners to ensure their clients receive comprehensive advice.
Factors Influencing Estate Planning Costs
Estate planning costs are not one-size-fits-all. The final price depends on several factors, and understanding them helps you budget realistically and avoid overpaying for services you don’t need — or underpaying for advice that leaves dangerous gaps.
Complexity of the Estate
The complexity of your estate is the single biggest driver of cost. A straightforward estate — one property, a pension, some savings, everything going to your spouse and then your children — requires less work than an estate involving buy-to-let properties, business interests, assets held abroad, or blended family dynamics where you need to protect children from a previous relationship.
Here’s how different levels of complexity typically affect planning costs:
| Estate Complexity | Characteristics | Estimated Cost Range |
|---|---|---|
| Simple | Single property, straightforward family, basic will and LPAs | £300 – £850 |
| Moderate | Property plus other assets, lifetime trust for home protection, IHT planning | £850 – £2,000 |
| Complex | Multiple properties, business assets, blended family, international elements | £2,000+ |
Geographical Location
Geographical location affects estate planning costs, but perhaps not as much as you’d expect. High-street solicitors in London and the South East charge significantly more for general legal work, but specialist estate planning firms like MP Estate Planning operate nationally and offer consistent pricing regardless of where you live. Because trust and will work can be done remotely — with consultations by phone, video, or in person — you’re not limited to using a local firm.
Professional Fees
Professional fees make up the bulk of estate planning costs, and fee structures vary considerably. Some solicitors charge by the hour (typically £150–£350+ per hour depending on experience and location), while specialist estate planning firms like MP Estate Planning offer fixed-fee packages so you know the exact cost upfront — no hourly clock ticking while you ask questions.
Estate planning sits at the intersection of trust law, tax law, and property law, and the depth of planning required can vary significantly. A solicitor may draft a technically valid will, but comprehensive estate planning often benefits from specialist input on IHT planning opportunities, trust structures that protect against care fees, and the sideways disinheritance risk in a second marriage. Working with a dedicated estate planning specialist — alongside your solicitor — ensures all of these threats are identified, and a fixed fee often provides cost certainty compared to hourly billing for complex matters.
By understanding these factors, you can make informed decisions and choose the right level of professional support for your specific circumstances.
Price Ranges for Different Services
Understanding the price ranges for different estate planning services helps you budget effectively and decide which elements of planning are priorities for your family. Here’s what you can expect to pay in England and Wales in 2026.
DIY Will Writing
DIY will writing is the cheapest option, with kits and online templates costing from £20 to £100. For a single person with a very simple estate and straightforward wishes, this might seem adequate.
Some benefits of DIY will writing include:
- Low upfront cost
- Convenience of completing it at home
- Quick to draft
However, the risks are significant and often underestimated:
- No professional advice on IHT planning — you could leave your family with a 40% tax bill that was entirely avoidable
- Potential for errors that invalidate the will entirely (incorrect witnessing is the most common mistake)
- No consideration of trust structures for care fee protection or asset protection
- Completely unsuitable for anyone with property, children from previous relationships, or an estate above the nil rate band
Professional Will Drafting
For most families, professional will drafting is the minimum standard of estate planning. Costs range from £150 for a basic single will to £600 or more for mirror wills for couples that include will trusts (such as a life interest trust to prevent sideways disinheritance).
Benefits of professional will drafting include:
- Personalised advice tailored to your family circumstances and asset profile
- Proper consideration of IHT reliefs, including the residence nil rate band (RNRB) worth up to £175,000 per person
- Will trusts can be included to protect assets for children if the surviving spouse remarries
- Peace of mind that the document is legally valid and properly witnessed
Lifetime Trust Establishment
Lifetime trust establishment is where the real asset protection begins. A lifetime trust — most commonly a discretionary trust — allows you to place assets (typically your home) into a legal arrangement managed by trustees for the benefit of your chosen beneficiaries. Because the trust takes effect during your lifetime rather than on death, assets held in trust bypass probate entirely and can be protected from care fee assessments, divorce, and creditor claims.
It’s important to understand how trusts work under English law. A trust is not a separate legal entity — it is a legal arrangement where the trustees become the legal owners of the trust property and hold it for the benefit of the beneficiaries. In a discretionary trust, no beneficiary has any automatic right to income or capital — the trustees have absolute discretion over when, how much, and to whom distributions are made. This is the key mechanism that provides protection: if a beneficiary is asked in a divorce, “What assets do you own?”, the honest answer is, “What house? I don’t own a house.”
At MP Estate Planning, straightforward lifetime trusts start from £850, with most family trust packages falling in the £850–£2,000 range depending on complexity. More complex situations involving multiple properties, business assets, or detailed tax planning may cost more. Mike Pugh is the first and only estate planning professional in the UK to actively publish all prices on YouTube, so you can see exactly what you’ll pay before you pick up the phone.
| Service | Cost Range | Key Benefits |
|---|---|---|
| DIY Will Writing | £20 – £100 | Low cost, but no professional advice or asset protection |
| Professional Will Drafting | £150 – £600+ | Personalised advice, IHT planning, will trusts available |
| Lifetime Trust (e.g., Family Home Protection Trust) | From £850 | Care fee protection, bypasses probate, IHT planning, divorce protection |
When you compare the cost of a trust to the potential costs it protects against — care fees averaging £1,200–£1,500 per week mean a trust pays for itself in less than a week of care — it’s one of the most cost-effective forms of protection available for any family.
Average Costs of Estate Planning in 2026
In 2026, estate planning costs in England and Wales vary depending on what you need, but the overall picture is clear: comprehensive planning is more affordable than most people think, and far cheaper than the consequences of failing to plan.
National Averages
Here’s a realistic breakdown of what estate planning services cost across England and Wales in 2026:
- Simple will (single person, straightforward estate): £150–£300
- Mirror wills for a couple (with basic will trusts): £300–£600
- Lasting Powers of Attorney (pair — health & welfare plus property & financial): £300–£600 for professional preparation, plus the registration fee per LPA
- Lifetime trust (e.g., Family Home Protection Trust): From £850
- Comprehensive estate planning package (wills, LPAs, lifetime trust, IHT planning): Typically £1,500–£2,500 for a couple
The notion that estate planning costs £3,000–£8,750 is misleading for most families. Those figures might apply if you’re using a City of London solicitor charging £400+ per hour for complex multi-jurisdictional planning. For the vast majority of homeowners in England and Wales — the people who most need protection — proper estate planning is genuinely affordable.
Regional Variations
Regional variations exist, but they’re less dramatic than you might expect — particularly if you use a specialist firm that works nationally.
The main regional differences are driven by solicitor hourly rates, which tend to be higher in London and the South East due to higher overheads. However, for fixed-fee estate planning work, the difference largely disappears. What matters far more than geography is the level of specialism in the area of estate planning.
- London and South East: Solicitor hourly rates are highest here, but specialist fixed-fee firms offer the same prices nationally.
- Midlands, North, Wales, South West: Hourly rates tend to be lower, but dedicated estate planning specialists may be fewer in number, meaning some families choose to work remotely with a national firm.
The key takeaway: don’t choose a professional based on proximity alone. Choose them based on their specialism, their transparency on pricing, and their track record. Estate planning is a specialist area where dedicated expertise makes a real difference — which is why many solicitors refer clients to dedicated trust practitioners for this type of work.
Additional Expenses in Estate Planning
Beyond the initial setup costs of wills and trusts, there are additional expenses that can significantly impact your estate’s value if you don’t plan for them. Understanding these costs is what separates reactive planning from truly comprehensive protection.
Inheritance Tax Considerations
Inheritance tax (IHT) is often the single largest expense an estate faces — and it’s a cost that proper planning can dramatically reduce or even eliminate. IHT is charged at 40% on the value of your estate above the nil rate band (NRB) of £325,000 per person. This threshold has been frozen since 2009 and is confirmed frozen until at least April 2031, meaning inflation has been steadily dragging more ordinary families into the IHT net every year.
If you’re leaving your main residence to direct descendants (children, grandchildren, or stepchildren), the residence nil rate band (RNRB) of £175,000 per person can also apply. For a married couple, the combined allowances can reach up to £1,000,000 (£650,000 NRB + £350,000 RNRB) — but only if the estate is structured correctly. The RNRB tapers away by £1 for every £2 that the estate value exceeds £2,000,000, and it is not available if you leave your home to nephews, nieces, siblings, or friends. A reduced rate of 36% applies if you leave 10% or more of your net estate to charity.
There are also important changes on the horizon: from April 2026, Business Property Relief and Agricultural Property Relief will be capped at 100% for the first £1 million of combined qualifying property, with only 50% relief on the excess. From April 2027, inherited pensions will become liable for IHT. These changes mean that estate planning advice is more important than ever. For more information on planning in this changing landscape, you may wish to read about estate planning considerations in 2026.
Probate Fees
Probate fees are another cost to factor in. A small court fee is payable to HM Courts & Tribunals Service when applying for a Grant of Probate (if there’s a will) or Letters of Administration (if there isn’t). This fee is waived for very small estates.
However, the real cost of probate isn’t the court fee — it’s the delay and the asset freeze:
- During probate, all sole-name assets — bank accounts, property, investments — are frozen. Your family cannot access them until the Grant is issued.
- The full probate process typically takes 3–12 months. Where property needs to be sold, it can stretch to 9–18 months or longer.
- Once a Grant is issued, the will becomes a public document — anyone can obtain a copy for a nominal fee.
- If a solicitor handles the full probate administration, fees typically range from 1–4% of the estate value, plus VAT — on a £300,000 estate, that could mean £3,000–£12,000 in professional fees alone.
Assets held in a properly structured lifetime trust bypass probate entirely. Trustees can act immediately upon the settlor’s death — no frozen accounts, no delays, no public record. This is one of the most practical and immediate benefits of trust-based estate planning.
Hidden Costs to Consider
It’s essential to factor in the hidden costs that can arise over time. Estate planning is not a “set and forget” exercise — your circumstances change, the law changes, and your plans need to keep pace.
Updating Legal Documents
As life events unfold — marriages, divorces, births, deaths, house moves, changes in financial circumstances — your estate plan will likely need updating. Failing to update your documents after a major life event is one of the most common and costly mistakes in estate planning.
- Wills: A will is automatically revoked by marriage in England and Wales (many people don’t know this). Divorce doesn’t revoke the whole will but does remove your ex-spouse as a beneficiary or executor. Any significant life change should trigger a review.
- Lasting Powers of Attorney: If your chosen attorney dies, loses capacity themselves, or your relationship breaks down, you’ll need to create a new LPA. Without a valid LPA, your family would need to apply to the Court of Protection for a deputyship — a process that is far more expensive and time-consuming.
- Trust deeds: Well-drafted trust deeds shouldn’t need frequent amendment, but the letter of wishes (which guides trustees on your preferences) should be reviewed whenever your circumstances change.
Ongoing Trust Management
For those who establish lifetime trusts, ongoing trust management is a consideration — though the costs are often far lower than people expect.
Key ongoing obligations for trustees include:
- Trust Registration Service (TRS): All UK express trusts must be registered with HMRC within 90 days of creation and kept up to date. This is a legal requirement, not optional. Importantly, unlike Companies House, the TRS register is not publicly accessible — your trust details remain private.
- Tax returns: Trustees must file an SA900 trust tax return if the trust has taxable income or gains. Trust income is taxed at 45% (39.35% for dividends), with the first £1,000 taxed at the basic rate. However, many family home protection trusts generate little or no taxable income, so the practical impact is often minimal.
- 10-year periodic charges: Discretionary trusts are subject to a periodic charge every 10 years — but the maximum rate is only 6% of the trust value above the available nil rate band. For most family homes held in trust where the value is below the NRB, this charge is zero. Exit charges when assets leave the trust are proportional to the last periodic charge — typically less than 1%, and zero if the periodic charge was zero.
- Record-keeping: Trustees should keep minutes of key decisions and maintain proper records, particularly if distributions are made to beneficiaries.
For most family trusts holding a primary residence, the ongoing costs are modest — often just a few hundred pounds per year for basic administration, if any professional help is needed at all. The settlor is typically also a trustee, which keeps them involved in decisions and reduces the need for third-party management. Understanding these costs upfront allows you to plan effectively and ensure your trust continues to protect your family for years to come.
The Role of Solicitors and Specialists in Estate Planning
Solicitors and specialist estate planning practitioners both play a vital role in protecting your assets and your family. Estate planning often benefits from a collaborative approach — your solicitor providing trusted legal counsel, and a specialist estate planner bringing dedicated expertise in trusts, IHT planning, and asset protection. Together, they ensure your plan is comprehensive and robust.
When to Consult a Specialist
We recommend seeking specialist estate planning advice — in addition to your existing legal adviser — in several situations:
- When you own a property — with the average home in England now worth around £290,000, property alone can push your estate above the IHT nil rate band
- If you have complex family dynamics, such as blended families, children from previous relationships, or estranged relatives
- When you want to protect your home from being used to pay for residential care
- If you’re concerned about a child’s marriage being at risk — a discretionary trust means that in the event of divorce, the answer to “what assets do you own?” is “What house? I don’t own a house”
- When you want to establish lifetime trusts or other legal arrangements to manage and protect your estate
- If you need Lasting Powers of Attorney in place before capacity is lost (once you lose capacity, it’s too late)
Consulting a specialist early in the process can help avoid costly mistakes and ensure your estate plan addresses all the threats — not just the ones you’ve thought of. MP Estate Planning uses a proprietary 13-point threat analysis (Estate Pro AI) to identify risks specific to your circumstances.
Professional Fees Overview
Understanding fee structures helps you budget and avoid surprises. Here are the common approaches:
- Fixed Fees: Specialist estate planning firms typically offer fixed fees — you know the total cost before you commit. This is the model MP Estate Planning uses, with trust packages starting from £850.
- Hourly Rates: Many solicitors charge by the hour, typically £150–£350+ depending on seniority and location. This can work well for simple matters but may become more expensive for anything involving trusts or detailed IHT planning.
- Percentage-Based Fees: Some solicitors (particularly for probate administration) charge a percentage of the estate value — typically 1–4% plus VAT. On larger estates, this can amount to thousands of pounds.
Always ask for a clear, written fee estimate before instructing any professional. A good estate planning specialist will be transparent about costs — if they won’t give you a straight answer on price, that’s a red flag.
Online Will Writing Services
The rise of digital technology has led to an increase in online will writing services, and they can be a sensible option — but only for certain people in certain circumstances.
Comparison with Traditional Services
Traditional solicitor services and specialist estate planners provide personalised advice and can handle complex planning requirements. Online will writing services offer speed and low cost, but they’re limited in what they can do.
Here’s how they compare:
| Feature | Online Will Writing Services | Specialist Estate Planning Service |
|---|---|---|
| Cost | Typically £20–£100 for a basic will | From £150 for a basic will; from £850 for trust-based planning |
| Personalisation | Template-driven — limited ability to handle complex wishes | Fully tailored to your family, assets, and specific risks |
| IHT Planning | None — a will alone cannot reduce your IHT liability | Comprehensive — trusts, gifting strategies, use of reliefs and exemptions |
| Care Fee Protection | Not available through a will alone | Available through properly structured lifetime trusts |
Pros and Cons of Online Services
Online will writing services have genuine advantages for the right person: they’re affordable, convenient, and quick. If you’re a young single person with modest assets and straightforward wishes, an online will is infinitely better than no will at all.
However, there are significant limitations:
- No advice on IHT planning — you might create a perfectly valid will that still results in your family paying tens of thousands in unnecessary inheritance tax
- No ability to set up lifetime trusts for care fee protection or asset protection
- Risk of errors — particularly around witnessing requirements, which if done incorrectly can invalidate the entire will
- Completely unsuitable for complex estates, blended families, or anyone with a property
For more information on the costs associated with will writing and how they compare to trust-based planning, visit our page on how much does a will cost.
The bottom line: an online will is better than nothing, but for most homeowners and families, it’s only the beginning of what proper estate planning should include — not the end of it.
Common Misconceptions about Estate Planning Costs
Misconceptions about estate planning costs stop thousands of families from taking action — and end up costing them far more in the long run. Let’s address the biggest myths head-on.
Myths vs. Reality
- Myth: Estate planning is only for the wealthy. Reality: With the IHT nil rate band frozen at £325,000 since 2009 and the average home in England worth around £290,000, ordinary homeowners are now firmly in the IHT net. Trusts are not just for the rich — they’re for the smart.
- Myth: Estate planning costs thousands of pounds. Reality: A comprehensive estate plan including wills, LPAs, and a lifetime trust typically costs £1,500–£2,500 for a couple — roughly the same as one to two weeks of residential care fees.
- Myth: A will is all you need. Reality: A will only takes effect on death, goes through probate (causing delays and becoming a public document), and does absolutely nothing to protect your assets from care fees, divorce, or IHT during your lifetime. A will is essential, but it’s only one piece of the puzzle.
- Myth: DIY estate planning saves money. Reality: For anything beyond the most basic will, DIY approaches risk costly errors — invalid documents, missed IHT reliefs, no trust protection. The cost of fixing mistakes after death is always higher than getting it right the first time.
- Myth: You can sort it out later. Reality: Once you lose mental capacity, you cannot create or amend a will, establish a trust, or sign an LPA. And care fee planning must be done well in advance and for genuine purposes beyond avoiding care charges — you cannot transfer assets after a foreseeable need for care arises without risking a deprivation of assets challenge from the local authority. There is no fixed time limit on deprivation claims (unlike the 7-year IHT rule), but the legal test under the Care Act 2014 s17(6) is whether avoiding care charges was a significant purpose of the disposal, not simply when it took place. The longer the gap between the transfer and the need for care, the harder it may be for the local authority to evidence that avoiding charges was a significant purpose.
Understanding the Value of Estate Planning
The real question isn’t “how much does estate planning cost?” — it’s “how much does NOT planning cost?” Here’s what’s at stake:
- IHT: 40% of everything above £325,000 (or £500,000 with the RNRB for direct descendants). On a £500,000 estate with full reliefs, IHT could be zero. Without proper planning, the same estate could face a bill of £70,000 or more.
- Care fees: Between 40,000 and 70,000 homes are sold annually in England to fund residential care. At £1,200–£1,500 per week, a family home can be consumed in just 3–5 years. The capital threshold above which you must self-fund is currently just £23,250.
- Probate delays: Months of frozen assets, your family unable to access money they need, and the will becoming a public record.
- Divorce: With a UK divorce rate of around 42%, protecting inherited wealth for the next generation is a genuine concern. Assets in a properly structured discretionary trust are not the beneficiary’s assets — no beneficiary has an automatic right to the trust property, so it cannot simply be claimed in a divorce settlement.
- Family disputes: Contested estates can cost tens of thousands in legal fees and tear families apart. Clear, professional planning dramatically reduces this risk.
As Mike Pugh says: “Keeping families wealthy strengthens the country as a whole.” Estate planning isn’t an expense — it’s an investment in your family’s future security.
Legal Aid and Support Options
Not everyone can afford full professional fees, and it’s important to know what support is available. While estate planning isn’t typically covered by legal aid, there are options worth exploring.
Eligibility for Legal Aid
Legal aid in England and Wales is means-tested and generally limited to specific areas of law. Unfortunately, straightforward estate planning — will writing, trust creation, inheritance tax planning — is not usually covered by legal aid.
Situations where legal aid may be relevant include:
- Court of Protection proceedings involving vulnerable individuals
- Disputes involving the welfare of children where estate matters intersect with family law
- Certain cases involving domestic violence where estate planning is linked to safety concerns
Eligibility depends on your income, capital, and the nature of the legal issue. You can check the current criteria through the government’s legal aid eligibility checker or contact a legal aid provider directly.
Alternative Support Services
If legal aid isn’t available, there are alternative options that can help manage the cost of estate planning:
- Free Will Month and charity will schemes: Certain charities run campaigns (such as Free Wills Month in March and October) where solicitors draft basic wills free of charge, in the hope that you’ll include a charitable bequest. These are excellent for basic wills but won’t cover trust creation or IHT planning.
- Citizens Advice: Provides free general guidance on wills and estate planning basics, though they cannot draft documents or provide specialist tax advice.
- Specialist firms with transparent pricing: Firms like MP Estate Planning offer fixed-fee services with clear pricing published online, so you know exactly what you’ll pay. Starting from £850 for a straightforward trust, this is accessible for most families — particularly when you compare the one-off cost to the potential costs it protects against.
- Payment plans: Some estate planning firms offer payment plans to spread the cost over several months.
Plan, don’t panic. There is always a way to get proper estate planning in place — the worst thing you can do is nothing at all.
Planning for the Future
Estate planning is not a one-time task — it’s a living process that should evolve as your life changes and the law develops. The families who are best protected are those who plan early, review regularly, and work with specialists who understand the full landscape of threats and opportunities.
Long-term Considerations in Estate Planning
When thinking about long-term considerations, there are several factors that should inform your planning:
- The frozen nil rate band: The £325,000 NRB has not increased since 2009 and won’t rise until at least April 2031. Meanwhile, property values continue to climb. Every year you delay planning, the potential IHT bill grows.
- Care fee exposure: People are living longer, and the likelihood of needing residential care is increasing. The capital threshold for self-funding care is currently £23,250 — once your assessable assets fall below that, the local authority contributes. But assets must be placed in trust well in advance of any need for care, and for genuine purposes beyond avoiding care charges, to avoid a deprivation of assets challenge. The legal test under the Care Act 2014 s17(6) is whether avoiding care charges was a significant purpose of the disposal — not simply when it took place. MP Estate Planning’s approach documents multiple legitimate reasons for the trust, ensuring care fee protection is demonstrably not a significant purpose of the arrangement.
- Pension changes from 2027: Inherited pensions becoming liable for IHT from April 2027 means pension death benefits — previously a highly tax-efficient way to pass wealth — will need to be factored into your overall estate planning strategy.
- Family changes: Marriage, divorce, births, deaths, and changes in relationships all affect your estate plan. A discretionary trust deed can last up to 125 years, but your letter of wishes should be updated whenever your circumstances change.
Reviewing Your Estate Plan
We recommend reviewing your estate plan every 3–5 years as a minimum, and immediately whenever a significant life event occurs — marriage, divorce, birth of a child or grandchild, a house move, a change in health, or a major change in asset values. Key elements to review include:
- Your will: Does it still reflect your wishes? Remember that marriage automatically revokes an existing will in England and Wales.
- Your Lasting Powers of Attorney: Are your chosen attorneys still appropriate and willing to act?
- Your lifetime trusts: Are the trustees still appropriate? Does your letter of wishes need updating? Is the trust deed’s provision for removing and replacing trustees clear and up to date?
- Your IHT position: Has the value of your estate changed? Are you still within the available reliefs, or do you need additional planning?
The cost of a review is modest compared to the cost of an outdated plan. If you haven’t reviewed your estate plan in more than five years — or if you don’t have one at all — now is the time to act. Contact MP Estate Planning for a no-obligation conversation about your specific circumstances.