Estate planning isn’t just for the elderly or the wealthy—it’s a step everyone should take to protect their family’s future. Shockingly, a 2021 study by Canada Life revealed that 59% of UK adults don’t have a will or any sort of estate plan in place. This leaves families vulnerable to unnecessary financial and legal complications when the unexpected happens.
With 2025 just around the corner, now is the perfect time to start thinking about your estate. By acting today, you can avoid unnecessary stress, protect your wealth, and ensure your loved ones are cared for, no matter what the future holds.
What is estate planning, and why is it important?
At its core, estate planning ensures your wealth, assets, and belongings are passed on according to your wishes. Whether you’re managing property, investments, family heirlooms, or digital assets, having a clear plan provides peace of mind and financial security for your loved ones.
Without an estate plan, your assets could be subject to lengthy legal battles, avoidable taxes, or even distributed in ways you didn’t intend. Estate planning is not just a legal formality—it’s a thoughtful act of care and responsibility that ensures your legacy is protected and honoured.
Why 2025 is the right deadline for estate planning?
1. Potential changes in tax laws
Governments frequently revise tax laws, and estate and inheritance tax thresholds are often on the chopping block. In 2025, adjustments to these laws could significantly impact how much of your estate is passed on to your beneficiaries. For instance, the UK currently has an inheritance tax threshold of £325,000 (known as the nil-rate band). This threshold has been frozen until at least 2028, meaning any increase in the value of your estate above this amount could be subject to a 40% tax. By planning now, you can take advantage of current tax exemptions, deductions, and other financial benefits such as Residence Nil-Rate Band (RNRB) before any changes take effect.
2. Rising asset values
The value of real estate, investments, and other assets has been steadily increasing. Additionally, the UK’s Lifetime Allowance (LTA) for pensions was abolished in 2023, but other future changes could reintroduce limits on how much you can hold tax-free. Proper estate planning allows you to implement strategies—such as trusts or gifting—to minimise these liabilities, ensuring that more of your wealth is preserved for your heirs.
3. The gift of certainty
Life’s unpredictability is one of the strongest reasons to start estate planning today. Tragedies or unexpected events can occur at any time. Having a comprehensive plan ensures your loved ones are not left navigating legal complexities or disputes during an already emotional time.
Benefits of Estate Planning Before 2025
1. Protecting your family’s future
A well-crafted estate plan ensures that your assets are distributed according to your wishes, avoiding disputes or confusion. It also provides financial stability for your loved ones, particularly dependents who rely on your support.
2. Reducing stress for executors
The legal and financial processes associated with estates can be complicated and time-consuming. An estate plan simplifies this process, guiding your executors and ensuring a seamless transition of responsibilities.
3. Leveraging technological advancements
With the rise of digital estate planning tools, organising your financial and legal documents has never been easier. Platforms like Know Your Dosh allow you to securely store and manage all your financial information in one place, making it accessible and straightforward for your family when needed.
4. Peace of mind for you and your loved ones
There’s no substitute for the sense of security that comes with knowing your affairs are in order. Estate planning not only safeguards your legacy but also relieves your family of unnecessary stress, allowing everyone to focus on what truly matters.
Key steps to start estate planning
Getting started with estate planning might seem daunting, but breaking it into smaller steps can make the process manageable:
- Inventory Your Assets
Create a comprehensive list of everything you own—properties, bank accounts, investments, digital assets, and sentimental belongings. - Define Your Wishes
Decide how you want your assets distributed and who will be responsible for managing your estate. Consider appointing a trusted executor or creating a trust to simplify asset management. - Draft a Will
A will is the cornerstone of any estate plan. It outlines your wishes clearly and legally, ensuring there’s no room for misinterpretation. - Plan for Taxes
Consult with a financial advisor or estate planning expert to explore tax-saving strategies, such as charitable giving, trusts, or lifetime gifts. - Secure Your Plans Digitally
Use platforms like Know Your Dosh to keep your documents, instructions, and financial data safe and easily accessible.
Secure Your Legacy with Know Your Dosh
Modern estate planning doesn’t have to be complex or overwhelming. With tools like Know Your Dosh, you can simplify the process by:
- Storing all financial information in one secure platform
- Easily updating and sharing your estate plans
- Ensuring your family has access to everything they need when it matters most
Conclusion
Estate planning isn’t just a financial necessity—it’s a vital step in securing your legacy and protecting your loved ones’ future. By taking action before 2025, you can benefit from current regulations, optimise your tax position, and provide peace of mind to yourself and your family.
Ready to take control of your estate planning?
Sign up now to Know Your Dosh to simplify the process and give you the confidence to face the future.
