Understanding the Basics of Estate Planning in the UK
Estate planning in the UK isn’t just for the elderly or wealthy—it’s something everyone should do to protect their loved ones, avoid legal headaches, and ensure their wishes are respected. With the UK tax code being over 11,500 pages long—the longest in the world—having a basic estate plan in place is essential.
According to official UK government statistics, over half of UK adults still don’t have a valid will—meaning their estates could be distributed by default under intestacy rules.
In this guide, we’ll cover the essential documents and steps to help you protect your estate and your family in 2024 and beyond.
Watch: Estate Planning Explained
Why Estate Planning Matters in the UK
When you die without a will in place, your assets are divided according to the rules of intestacy. This often excludes unmarried partners, stepchildren, and close friends—even if they were financially dependent on you.
Even more importantly, if you become incapacitated due to illness or injury and don’t have a Lasting Power of Attorney, your family will be forced to apply to the Court of Protection to manage your affairs—a lengthy and expensive process.
The Two Documents Every UK Adult Needs
1. A Legally Valid Will
A will ensures your property, money, and possessions go to the people or causes you care about. It also allows you to:
- Appoint guardians for children under 18
- Reduce family disputes
- Plan for inheritance tax (IHT) efficiency
Without a will, your estate could face delays and conflicts—and your children could even end up in foster care while guardianship is decided.
Cost: A professionally written will can cost as little as £99 + VAT.
2. A Lasting Power of Attorney (LPA)
An LPA allows someone you trust to make decisions on your behalf if you lose mental or physical capacity. There are two types:
- Property and Financial Affairs LPA: Lets someone manage your finances, pay bills, or sell property on your behalf.
- Health and Welfare LPA: Lets someone make decisions about your medical treatment and care.
Only about 10% of UK adults currently have a registered LPA (source), meaning most families face significant legal hurdles if a loved one becomes incapacitated.
Cost: Around £199 + VAT and disbursements for professional setup (vs. £4,000+ court application fees if done after incapacity).
What Happens If You Don’t Plan?
If you die or become incapacitated without a will or LPA:
- Your loved ones may not inherit what you intended
- Your family might need to apply to the Court of Protection (a costly and stressful process)
- Children may go into care until legal guardianship is decided
- Doctors may make decisions without family input if no LPA is in place
Who Should You Appoint?
Choose people you trust—your spouse, adult children, siblings, or close friends. Talk with them beforehand to make sure they’re willing and understand your wishes.
Optional: Should You Consider a Trust?
Trusts can be added for further protection if:
- Your estate exceeds IHT thresholds
- You want to avoid care home fees
- You’re in a blended family
- You want to protect vulnerable beneficiaries
For example, a family trust can help protect your home from care costs or ensure your children from a previous marriage inherit specific assets.
Watch Mike’s additional videos for more information about trusts and advanced strategies.
Summary: Your Next Steps
Here’s what you should do today to get started:
- Make or update your will
- Set up both types of Lasting Power of Attorney
- Talk to your family about your plans
- Book a free consultation with a trusted estate planning expert
About Mike Pugh
Mike Pugh is a British-Canadian estate planner with over 2,000 clients and experience managing more than £650 million in client assets. Based in Bristol, UK, Mike is known for breaking down complex legal topics in a clear and friendly way. You can subscribe to his YouTube channel for more insights and updates.
Need Help Getting Started?
If you’re ready to take control of your estate plan, we’re here to help. Our team offers basic wills from just £99 + VAT and Lasting Power of Attorney packages starting at £199 + VAT.
Book your free 20-minute consultation now and get peace of mind for you and your family.