Estate planning might feel like something to “deal with later,” but waiting could cost you—and your loved ones—far more than you’d imagine. The truth is, early estate planning isn’t just for millionaires. It’s a smart move for anyone who wants to protect their hard-earned assets and ensure their family’s future is secure.
From saving on inheritance tax to reducing legal headaches, sorting your estate early offers financial relief and peace of mind. Here’s everything you need to know about the benefits of getting your estate plan in place sooner rather than later.
What is estate planning?
Estate planning means deciding how your assets—like your house, savings, and investments—will be managed or distributed after your death. It also involves putting plans in place in case you can’t make decisions for yourself. This usually includes creating a will, setting up trusts, and appointing someone you trust to act on your behalf.
While it sounds challenging, getting started now makes everything simpler in the long run.
So why is it important to start estate planning early? Let’s break it down:
1. Protects your assets and your family’s future
One of the biggest reasons to plan early is to protect what you’ve worked hard for. If you don’t have a will or a plan in place:
- The law decides who gets your assets.
- Family disputes could arise, costing everyone time and money.
- Creditors might claim portions of your estate.
By planning ahead, you keep control over your assets. Whether it’s your house, pension, or savings, you can decide who benefits—and when.
2. Save money on inheritance tax
Inheritance tax (IHT) in the UK is a hefty 40% on any estate worth over £325,000. That’s almost half of your hard-earned wealth gone if you don’t plan properly.
Here’s how early estate planning can help reduce IHT:
- Gifts: You can gift up to £3,000 a year tax-free. This amount might sound small now, but over time, it adds up.
- Trusts: Trusts allow you to pass on assets while controlling how and when they’re used.
- Spouse exemptions: Leaving assets to your spouse or civil partner avoids IHT entirely.
By starting early, you can explore these options and keep more of your wealth within the family.
3. Avoid expensive probate delays
When someone dies without a will, their estate goes through probate —a legal process that can take months or even years. And guess what? It’s not cheap either.
Early estate planning ensures:
- Faster access to funds for your loved ones.
- Lower probate fees.
- A smoother distribution of your assets.
Simply put, you’ll save your family time, money, and a whole lot of stress.
4. Provide financial security for your loved ones
Estate planning isn’t just about wealth—it’s about security. Whether it’s leaving a fund for your children’s education, ensuring your partner keeps the house, or supporting ageing parents, planning early lets you allocate resources where they’re needed most.
By setting up a trust or including clear instructions in your will, you can:
- Protect assets for dependants.
- Provide for specific expenses like education or care.
- Maintain your family’s standard of living even after you’re gone.
It’s a thoughtful step that ensures your loved ones are cared for, no matter what happens.
5. Plan for unexpected life events
Life can be unpredictable, and while no one likes to think about accidents or illness, being prepared can save you and your family heartache later on.
Early estate planning allows you to:
- Appoint a lasting power of attorney to make decisions if you’re incapacitated.
- Set aside funds for long-term care costs.
- Ensure your assets are used in the way you intended.
Taking action now means you’re prepared for whatever life throws your way.
6. Avoid family conflicts and legal battles
When there’s no clear plan, emotions can run high, leading to disagreements among family members. Legal battles over inheritance can quickly drain your estate and strain relationships.
Early estate planning gives you the opportunity to:
- Make your wishes crystal clear.
- Prevent disputes by distributing assets fairly.
- Leave specific instructions to avoid confusion.
It’s one less thing for your family to worry about during a difficult time.
7. Gain peace of mind
Finally, early estate planning gives you something priceless: peace of mind. Knowing your affairs are in order brings comfort to you and your family. It ensures your legacy is protected and your loved ones are financially secure when they need it most.
How do I start estate planning?
To start estate planning, begin by creating a detailed list of your assets—like property, savings, investments, and valuables—and any liabilities, such as debts or mortgages.
Write a legally valid will to specify how your assets will be distributed, appoint an executor you trust, and name guardians for any dependants. Consider setting up trusts to protect wealth, reduce inheritance tax, and control when and how funds are used. Appoint a Lasting Power of Attorney (LPA) to ensure someone you trust can make financial or healthcare decisions on your behalf if you’re unable to.
Finally, securely organise and store all key documents—wills, trusts, and LPAs—so they’re easily accessible to trusted family members when needed. At Know Your Dosh, we make it simple to store and share these vital documents, giving you peace of mind that your estate is in order.
Why early estate planning starts with Know Your Dosh
Estate planning doesn’t have to be overwhelming. At Know Your Dosh, we help families like yours organise, store, and share vital financial information all in one secure place. From managing assets to ensuring your loved ones are prepared, our platform makes estate planning simpler and stress-free.
Don’t wait until it’s too late. Start planning today and give yourself—and your family—the peace of mind you deserve.
Ready to take the first step? Sign up with Know Your Dosh and start organising your financial future with confidence.
