How prepared are you to pass on your wealth?

According to our research, 85% of respondents said supporting family is important, while 72% were prioritising retirement.

This suggests that many people see their wealth not just as a way to fund their own later life, but as a resource to support future generations.

Inheritance planning is one of those tasks that many people know they should do but never quite get around to. Unlike saving into a pension, where you can clearly see the outcome later in life, the benefits of inheritance planning can feel less tangible or harder to visualise.

It also requires us to consider uncomfortable topics like illness and death. It’s often assumed that having a will is enough, and that assets will automatically pass to loved ones in line with those wishes.

In practice, things are rarely that straightforward.

Modern estates can be complex, often including a wide range of assets from property and investments to business interests and valuable personal items such as jewellery. Inheritance planning may also be affected by changes in tax rules and government policy, which may alter how tax-efficient your arrangements are.

For example, in April 2027, the rules around pensions and inheritance tax are expected to change. While pensions have traditionally sat outside of your estate for inheritance tax purposes, they may in future be included when calculating the value of your estate. This could mean that funds you had intended to pass on tax-efficiently might become subject to inheritance tax, depending on your overall circumstances. As a result, it may be increasingly important to review how your pension fits alongside the rest of your plans, particularly if passing on wealth is one of your goals.

Family circumstances can evolve too through marriage, divorce, or the arrival of children and grandchildren, all of which may influence how assets are ultimately distributed.

Some assets, such as pensions, may be governed by separate beneficiary nominations. This means it’s important to review all arrangements regularly, not just your will.

Please remember that tax rules (including inheritance tax) can change and depend on individual circumstances. The value of investments can fall as well as rise, and you may not get back what you originally invested.

Inheritance planning is often delayed until a major life event occurs, but without appropriate planning, your heirs may face a number of practical, financial and emotional challenges. One of the most common risks is that assets are not distributed in line with your intentions, for example, if your will is outdated or no longer reflects your current circumstances.

Poor preparation may also lead to delays when administering an estate, particularly if key documents are missing or out of date. These might include an up-to-date will, powers of attorney, details of pension nominations (Expression of Wish), life insurance policy beneficiaries, and trust deeds. In addition, clear records of your assets, liabilities and ownership arrangements. 

If this information is incomplete or difficult to locate, it can delay key steps such as valuing the estate or applying for probate. This may also reduce the opportunity to pass on wealth in a tax-efficient way, potentially leaving less available for beneficiaries.

This uncertainty, especially where expectations don’t match outcomes, may also lead to disputes between family members.

Our research shows that only:

• 57% have discussed their wishes with family
• 52% have an up-to-date will
• 51% have updated their pension nominations
• 42% have sought professional advice

As a result, a significant proportion of people may have arrangements in place that no longer reflect their intentions. This gap between intention and action suggests that the complexity of passing on wealth efficiently is often underestimated.

Interestingly, only 24% of people had considered lifetime gifting. This can be a useful way to reduce the value of your estate for inheritance tax (IHT) purposes, although it’s important to understand the rules.

• You can gift £3,000 each year without any tax implications
• Any unused allowance can be carried forward for one year

In addition, gifts may fall outside your estate if you live for seven years after making them, although this depends on individual circumstances.

Beyond potential tax benefits, gifting during your lifetime also allows loved ones to benefit from your support when they may need it most.

As always, tax treatment depends on personal circumstances and current legislation, which may change in the future.

Almost half (44%) of people want a clear, simple plan, while nearly four in ten (37%) value trusted professional conversations and want to better understand the tax implications.

This suggests that many people aren’t necessarily looking for complex strategies, they simply want reassurance that their plans are structured clearly and will support their family as intended.

Two-thirds (66%) of our respondents want to balance enjoying retirement with leaving something behind. Only 26% want to pass on as much as possible, while just 4% intend to spend everything.       

Yet it’s important to remember, that inheritance planning isn't just about having a will. It is important to review pension beneficiary nominations, keep all records of assets up to date, look at your gifting options, and have honest conversations with your family. Regular reviews are helpful to ensure your plans continue to reflect changes in your circumstances, family structure and tax rules.

A financial adviser could help you understand how your retirement, tax and inheritance plans work together. They can provide guidance tailored to your personal circumstances and help ensure your plans remain aligned with your goals.

You can book a free, no obligation call with one of our team today. There are no hidden fees or charges, and you’ll only pay if you choose to go ahead with the recommendations in your personalised financial plan.

By planning early and reviewing your arrangements regularly, you could improve the likelihood that your assets are passed on as intended while helping to reduce the risk of complications for your loved ones.

Source: Passing on wealth research, Lloyds Wealth, May 2026, based on 1,126 respondents.

This article is for information purposes only. It is not intended as financial advice.

The retirement benefits you receive from your pension plan depend on a number of factors including the value of your plan when you decide to take your benefits which isn't guaranteed and can do down as well as up. The benefits of your plan could fall below the amount(s) paid in.

If you need will writing or Power of Attorney services, your adviser can introduce you to specialists in these areas as Lloyds Wealth do not provide these services. If you need estate administration or trust management services, your adviser can refer you to Lloyds Bank or Bank of Scotland. Certain areas of these services (for example will writing and Power of Attorney) are not regulated by the FCA and you should refer to the provider's literature for confirmation.

Lloyds Wealth might receive a referral fee from some of the partners we introduce to you.

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