As the end of the tax year approaches, many people focus on income tax or pensions. However, it is also one of the most important times to review your estate planning.
The 5 April deadline creates a natural opportunity to make use of allowances, consider gifting, and ensure your plans are up to date. Taking action before the tax year resets can help you pass on more of your wealth to your family in a structured and tax-efficient way.
What estate planning really involves
Estate planning is about more than writing a will. It includes how your assets are managed, protected, and eventually passed on.
This can involve gifting during your lifetime, making use of tax allowances, and ensuring your wishes are clearly documented. When approached proactively, estate planning gives you greater control over how your wealth supports future generations.
Use your annual gifting allowances before April
One of the simplest ways to reduce the value of your estate is through gifting. The end of the tax year is a key deadline because many allowances do not roll forward indefinitely.
There are a few common allowances to be aware of:
- Annual exemption: You can give away up to a set amount each tax year without it being added to the value of your estate.
- Small gifts allowance: You can make smaller gifts to multiple individuals, provided certain limits are met.
- Unused allowance from the previous year: In some cases, you may be able to carry forward unused allowance – but only for a limited time.
Using these allowances consistently each year can gradually reduce the size of your estate without affecting your day-to-day finances.
Think carefully about larger gifts
Beyond annual exemptions, you may also consider making larger gifts. These are often referred to as potentially exempt transfers.
In simple terms, these gifts may fall outside your estate for inheritance tax purposes if you live for a certain period after making them. However, timing and documentation are important, and the rules can be complex.
For many families, larger gifts are used to support key life stages, such as helping children onto the property ladder or providing financial stability at important moments.
The key is to plan these gifts carefully so they align with your long-term financial needs as well as your estate planning goals.
A good time to review your will
The end of the tax year is also a useful prompt to review your will. Even if your circumstances have not changed significantly, small updates can make a meaningful difference.
You may want to consider whether your current arrangements still reflect your wishes, particularly if there have been changes in family structure, asset values, or financial priorities.
Keeping your will up to date ensures that any planning you do now works alongside your overall estate strategy.
Where trusts may fit into your plans
For some individuals, gifting outright may not always be the right option. This is where trusts can become part of the conversation.
A trust can allow you to set aside assets while retaining a level of control over how they are used. This can be particularly relevant where you want to provide for future generations but also ensure assets are managed responsibly.
Trusts are not necessary for everyone, but reviewing them at the end of the tax year can help you decide whether they should form part of your wider planning.
Planning ahead before the deadline
It is easy to leave estate planning until the final weeks of the tax year. However, acting earlier gives you more time to consider your options and avoid rushed decisions.
If you are thinking about gifting or updating your arrangements, speaking to a solicitor before the deadline can help you understand what is possible and what is appropriate for your situation.
Thinking about your estate planning this year? A short conversation now can help you make the most of your allowances before 5 April.
How Calthrops can support your estate planning
At Calthrops, estate planning is approached with clarity and care. You receive practical guidance on how allowances, gifting, and legal structures work together, so you can make informed decisions with confidence.
The focus is on helping you take a long-term view – ensuring your plans are not only effective today, but continue to support your family in the future.
Your end of tax year checklist
As 5 April approaches, a simple checklist can help you stay on track:
- Review gifting allowances: Have you used your annual exemption this year?
- Consider family support: Are there opportunities to help children or grandchildren now?
- Check your will: Does it still reflect your current wishes?
Think about future planning: Would a trust or structured approach give you more control? - Seek advice early: Have you spoken to a solicitor about your options?
Take the next steps
Estate planning does not need to be complicated, but it does benefit from regular attention. The end of the tax year is the ideal moment to take stock and act.
By making use of available allowances and reviewing your arrangements, you can maximise what you pass on and ensure your plans reflect what matters most to you.
To take the next step, contact the team to discuss your estate planning options or book a free initial consultation to start planning with clarity before the tax year ends.
