Estate planning for different life stages looks quite different at 25 than at 75. Your needs change as you build a career, start a family, buy a home and later retire. This guide looks at what to think about at each stage, under the law of England and Wales, so your plans keep pace with your life.
Estate planning for different life stages: young adults
You might think estate planning is only for older people. However, putting the basics in place early can save your loved ones a great deal of stress. Even at the start of your career, you probably own more than you think, such as savings, a pension, belongings and perhaps a first home.
At this stage, focus on a simple Will and Lasting Powers of Attorney (LPAs). A Will says who inherits. LPAs let people you trust manage your money and make care decisions if you cannot. This matters especially if you are not married, because an unmarried partner has no automatic right to inherit, and no one, not even a spouse, has automatic authority to act for you.
Also check your pension nomination form, often called an “expression of wish”. It sits outside your Will, so keep it up to date with your provider. From 6 April 2027, most unused pension funds and death benefits will also count towards your estate for Inheritance Tax. Finally, think about your digital accounts, from social media to any cryptocurrency.
Family life: protecting your growing family
In your 30s and 40s, life often becomes more complex. Marriage, children and buying a home all change your needs. Marriage or civil partnership also revokes an existing Will, unless it was made in contemplation of that marriage.
A Will is the usual way to appoint guardians for children under 18. You can also set up a trust in your Will, so your children’s inheritance is managed until they are older. Otherwise, under the intestacy rules, children receive their share outright at 18.
It is also worth checking whether your family would be financially secure if you died or became ill. We do not give financial or insurance advice, so we can refer you to an appropriate professional for life cover and protection.
Your peak earning years
During your 40s and 50s, you may have more assets, such as a larger home, investments or a business. So this is a good time to review your estate plan.
Inheritance Tax may become relevant. Most people have a nil-rate band of £325,000, and a residence nil-rate band of up to £175,000 may apply when a home passes to children or grandchildren. Both are frozen until April 2031. Your Will can reflect these rules. However, we do not give tax advice, so for Inheritance Tax planning we can refer you to an appropriate professional. The GOV.UK Inheritance Tax guide explains the basics.
If you own a business, also think about succession. Who would run it, and how would your family receive its value? Your accountant or solicitor can advise on shareholder agreements and business planning.
Estate planning in retirement
As retirement approaches, your focus may shift to later-life care and how you want to share your estate. So review your Will and make sure it still reflects your family and wishes.
If you have not made LPAs yet, now is a good time. You must have mental capacity to make an LPA, and registration with the Office of the Public Guardian currently takes around 8 to 10 weeks. GOV.UK explains more about making an LPA.
Many people also think about care fees at this stage. A Life Interest Trust in your Will may help keep your share of the home for your children after your partner’s death. However, it cannot guarantee the outcome. Also, giving assets away during your lifetime to avoid care fees can be treated as deliberate deprivation of assets. Our page on care fees and your home explains more.
Finally, think about any charities you would like to support, and talk to your family about your wishes. Clear communication can help prevent misunderstandings later.
Keeping your estate plan up to date
Good estate planning for different life stages means reviewing your plan as you go. Life changes, and your estate plan should too. Marriage, divorce, births, deaths, house moves and business changes should all prompt a review. After divorce or dissolution, for example, a former spouse is treated as having died on the date of the final order.
Ideally, check your Will every year, even if nothing seems to have changed. Our Safe Will Plan includes a free yearly review. Our Legacy Care Plan also adds one minor update a year and a brand-new Will every three years, for Wills we have written.
Take the first step
Estate planning for different life stages can feel daunting, but you do not have to do it alone. A.D.E. Wills is a small practice, and Edward will take you through each step in plain English. Our Wills and LPAs are offered at a fixed fee, and you can see the prices on our Wills Pricing and LPAs Pricing pages.
To talk about estate planning at your stage of life, call 01865 507174 or email info@adewills.co.uk. You can also read more about our estate planning services.
