News & Insights

Many families end up paying far more inheritance tax (IHT) than necessary simply because a Will was never written, has become outdated, or doesn’t make the best use of the allowances, exemptions and reliefs available. With property values continuing to rise and tax thresholds frozen, more estates than ever are being drawn into the IHT net.

For Update Your Will Week 2026, we are highlighting how a professionally drafted Will can protect your assets and preserve more of your wealth for those you care about.

1. Why Inheritance Tax Planning Matters

IHT is charged at 40% on the value of an estate above the available tax‑free thresholds. Even modest estates can now face significant tax bills particularly where a family home is involved.

Some of the key allowances, exemptions and reliefs include:

• Allowances: Every individual is entitled to the Nil Rate Band (NRB) of £325,000. An additional allowance known as the Residence Nil Rate Band (RNRB) of £175,000 can also be claimed where a home is left to direct descendants.
• Exemptions: Key exemptions known as the Spouse/Civil Partner exemption and Charity exemption allow assets to pass tax‑free.
• Reliefs: There are also key reliefs known as Business Property Relief (BPR) and Agricultural Property Relief (APR). From 6 April 2026, the first £2.5 million of combined qualifying BPR and APR assets will receive 100% relief from inheritance tax, with any qualifying value above this receiving 50% relief.

Although these sound generous, rising asset values and frozen thresholds mean many estates still exceed the limits. A well‑drafted Will, supported by tailored advice, can ensure these allowances are used to their fullest and that unnecessary tax is avoided.

2. Making the Most of the Spouse/Civil Partner Exemption

If you are married or in a civil partnership, assets left to your spouse or civil partner are exempt from IHT.

However, without a Will, your estate is distributed according to the intestacy rules, and your spouse or civil partner may not inherit everything if you have children. This can create an avoidable IHT charge on first death.

A professionally drafted Will ensures the exemption is used effectively, or, if you wish to provide for children or other family members, allows your estate to be structured in a way that supports your wishes while remaining as tax‑efficient as possible.

3. Using NRB and RNRB Allowances Efficiently

Together, the NRB and RNRB offer up to £500,000 of tax‑free allowance per person. For spouses or civil partners, any unused allowance on the first death can usually be transferred to the survivor’s estate, meaning up to £1 million can be available tax‑free on second death.

However:

• these allowances are not applied automatically
• they may be reduced by lifetime gifts
• they can be lost if your Will is not structured correctly

Our experts can confirm what you are entitled to and draft a Will that prevents the loss or waste of valuable allowances.

4. The Charity Exemption

Any gift to charity is completely exempt from IHT and if at least 10% of your net estate is left to charity, the IHT rate is reduced from 40% to 36%.

A well‑drafted Will ensures that any gift to charity is correctly drafted to ensure that your charitable wishes are fulfilled in the most tax‑efficient way.

5. Protecting Business and Agricultural Assets Through Trusts

For estates that include qualifying business or agricultural property, a Will can incorporate trusts that help preserve BPR or APR.

This can:

• ring‑fence relief‑qualifying assets
• protect family farms or businesses from forced sale
• assist with succession planning
• maintain flexibility as circumstances change

These reliefs are highly valuable and easily lost without careful drafting.

6. Planning for Unmarried Couples

Many people assume that long‑term partners automatically inherit from one another, but the law in England and Wales does not recognise cohabiting couples. Without a Will, an unmarried partner receives nothing under the intestacy rules, and this can create serious financial consequences. A well drafted Will ensures that your partner is protected and helps minimise the tax impact on your estate, giving both of you greater security and peace of mind.

7. Why Your Will Needs Regular Reviews

Even the best Will becomes outdated if circumstances change. Marriage, divorce, buying a property, new children or grandchildren, or updates to tax rules can all affect how effective your Will is.

As a general guide, Wills should be reviewed every 3–5 years, or sooner if major life events occur.

8. The Bottom Line: A Will Is One of the Most Effective IHT Saving Tools

A professionally drafted Will can:

• maximise allowances, exemptions and reliefs
• reduce or eliminate unnecessary IHT
• protect assets for future generations
• avoid costly mistakes and disputes
• ensure your wishes are carried out smoothly

Contact us

If you would like further information or wish to review, update or create a Will, please contact one of our Wills and Probate experts.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.