Estate planning and inheritance tax solicitors

Osbornes Law’s estate planning solicitors in London advise on wills, trusts, lifetime gifts and inheritance tax planning.

Most people put off estate planning because it means thinking about their own death. A plan decides who inherits, how much tax they pay, and whether your family ends up in a dispute.

Estate planning is not only for the very wealthy. With the inheritance tax thresholds frozen and property prices high in London, more estates now pay it than a few years ago.

Why plan your estate now?

Three recent changes affect estate planning.

• The allowances are frozen. The £325,000 nil-rate band and the £175,000 residence nil-rate band are fixed until April 2031. As your home and savings grow in value, more of your estate falls above the threshold.
• Business and farm relief is now capped. Since 6 April 2026, full relief on business and agricultural property is limited to the first £2.5 million.
• Pensions come into inheritance tax from 6 April 2027. Most unused pension funds will count as part of your estate for deaths on or after that date.

A plan that made sense five years ago may no longer do what you want. We review existing wills and trusts as well as putting new plans in place.

How our estate planning solicitors help you

We start with a meeting to understand your family, your assets (including your home, savings, pensions, business interests and property abroad) and what you want to achieve, which might be passing your home to your children, providing for a partner you are not married to, supporting a grandchild’s education, or making sure a family business carries on. We then explain your options in plain English, with an estimate of the inheritance tax your estate could pay now and how much different steps could save, prepare the documents once you have decided, and keep your plan under review as your life and the law change.

Good planning also cuts the risk of an argument after your death. Clear documents and well-structured trusts make it much harder for a will to be challenged. The inheritance disputes we see in our litigation team can eat into the assets you meant to protect.

Inheritance tax planning

Our inheritance tax solicitors help you understand what your estate could owe and how to reduce it lawfully.

What is inheritance tax?

Inheritance tax is charged on your estate when you die. The standard rate is 40% on the value of your estate above the tax-free threshold, known as the nil-rate band, which is £325,000.

Your executors usually need to pay at least some of the inheritance tax before they can get the Grant of Probate. Tax on property such as a house can often be paid in yearly instalments. If you made gifts in the seven years before your death, the person who received the gift may have to pay tax on it.

Allowances and exemptions

The main allowances and exemptions are:

• The nil-rate band. The first £325,000 of your estate is taxed at 0%, less any gifts you made in the seven years before your death that were not exempt. Any part you do not use can pass to your surviving spouse or civil partner.
• The residence nil-rate band. An extra £175,000, or the value of your home if that is less, is available if you leave your home, or a share of it, to your children, grandchildren or other direct descendants. It reduces by £1 for every £2 your estate is worth over £2 million. Any unused amount can also pass to your surviving spouse or civil partner.
• Gifts to your spouse or civil partner. These are normally free of inheritance tax. The exemption is limited to £325,000, across lifetime gifts and gifts on death, if you are a long-term UK resident and your spouse or civil partner is not. You are a long-term UK resident if you have been UK tax resident for at least 10 of the 20 tax years before the gift or death. In some cases your spouse can choose to be treated as a long-term UK resident, but that brings their worldwide assets into inheritance tax, so take advice first.
• Gifts to charity. Gifts to UK charities are exempt. If you leave at least 10% of your taxable estate (worked out after the tax-free allowances) to charity, a reduced rate of 36% can apply instead of 40%.

Used well, these allowances mean a married couple or civil partners can often pass on up to £1 million before any inheritance tax is due, if their home goes to their children or grandchildren and their estate is worth less than £2 million.

Business and agricultural property relief

Business relief and agricultural relief can reduce the tax on a family business, company shares or farmland. From 6 April 2026, 100% relief applies to the first £2.5 million of combined business and agricultural property. Relief of 50% applies above that. Shares on AIM and other shares that are not listed on a recognised stock exchange get 50% relief and do not use the £2.5 million allowance. The new rules also apply to gifts made on or after 30 October 2024 if the person who made the gift dies on or after 6 April 2026.

Any unused part of the £2.5 million allowance can pass to a surviving spouse or civil partner. That means a couple can pass on up to £5 million of qualifying business and farm property before paying inheritance tax on it. If you own a business or farm, our wealth planning solicitors can advise on succession and how the new rules affect you.

Pensions and inheritance tax from April 2027

For deaths on or after 6 April 2027, most unused pension funds and pension death benefits will count as part of your estate for inheritance tax. Death in service benefits paid from a registered pension scheme are excluded. Pensions left to a spouse or civil partner are still covered by the spouse exemption.

This changes the planning for many families, because pensions were often treated as a way to pass money on free of inheritance tax. Read our guide to inheritance tax on unused pensions.

Ways to reduce inheritance tax

There are several lawful ways to reduce the inheritance tax your estate will pay. Which ones suit you depends on your age, health, income and family. HMRC does not accept every scheme, so take advice before acting.

Make full use of both nil-rate bands

For married couples and civil partners, the order in which you leave assets, and to whom, affects how much of both nil-rate bands and both residence nil-rate bands can be used. If you have already sold your home or moved somewhere smaller, your estate may still be able to claim some residence nil-rate band through a separate “downsizing” claim.

Some older wills contain a nil-rate band trust that is no longer needed. It should usually be dealt with within two years of the death.

Lifetime gifts and the seven-year rule

Giving money or assets away during your lifetime reduces the value of your estate. Some gifts are exempt straight away:

• You can give away £3,000 in total each tax year. Any unused amount can be carried forward for one tax year only.
• You can give gifts of up to £250 per person each tax year, provided you have not used another allowance on the same person.
• You can give up to £5,000 to a child, £2,500 to a grandchild or great-grandchild, and £1,000 to anyone else when they marry or form a civil partnership.
• Regular gifts from your income are exempt if you can afford them after meeting your usual living costs.

Other gifts are free of inheritance tax if you live for seven years after making them. If you die within seven years, the gift uses up your nil-rate band first, which can increase the tax on the rest of your estate. If your gifts in the seven years before your death add up to more than the nil-rate band, tax is due on the part above it. Tax on gifts made three to seven years before death is reduced on a sliding scale, known as taper relief:

The order in which you make larger gifts matters, especially if you give to several children. Read our guide to gifting property to children before giving away a home or a share of it.

Trusts

A trust lets you pass assets on while trustees you choose control how they are used. Families use trusts to pay for a grandchild’s education, provide for a disabled relative, or protect assets for young children.

Trusts have their own tax rules, and putting assets into some trusts can itself trigger a charge. We explain the options, including life interest trusts, and can act as professional trustees if you prefer. Many trusts must also be registered with HMRC’s Trust Registration Service. Read our guide on whether you need to register your trust. Find out more about our trust solicitors.

Leaving money to charity

Gifts to charity, during your lifetime or in your will, are free of inheritance tax. Leaving at least 10% of your taxable estate to charity can also mean a reduced rate of 36% applies instead of 40%. See our guide on leaving money to charity in your will.

Our estate planning services

Alongside inheritance tax planning, our estate planning lawyers help with:

• Making a will. Without a valid will, the intestacy rules decide who inherits, and it may not be the people you would choose. Our will writing solicitors make sure your will reflects your wishes and is as tax-efficient as possible.
• Lasting Powers of Attorney. A Lasting Power of Attorney (LPA) lets people you trust make decisions about your money, property, health and care if you lose mental capacity. Find out about appointing attorneys under an LPA.
• International estates. If you own property abroad, the laws of more than one country may apply to your estate. We advise on international estate planning and work with lawyers overseas.
• How you own your home. Whether you own your home as joint tenants or tenants in common affects who inherits your share. Read about tenants in common and joint tenants and severing a joint tenancy.
• Care home fees. Many clients worry that care costs will use up their savings. Some planning can help, but giving assets away deliberately to avoid care fees can be treated as “deprivation of assets” by the local authority.
• Planning for larger estates and business owners. If you have a substantial estate, a family business or investments, our wealth planning solicitors work alongside your financial adviser.

Inheritance tax returns and dealing with HMRC

After a death, the executors must report the estate to HMRC and pay any inheritance tax due. Further returns may be needed if new assets come to light or assets sell for more or less than their probate value. We help executors complete and file inheritance tax returns and deal with HMRC’s questions.

Keeping clear records of lifetime gifts, trusts and major sales during your lifetime makes this much easier for your executors. Read more about the duties of executors and administrators.

What does an estate planning solicitor do?

An estate planning solicitor helps you decide what should happen to your money, property and possessions when you die, and puts the legal documents in place to make it happen. That usually means a will, and it can also include trusts, Lasting Powers of Attorney and a plan for lifetime gifts.

A good estate planning lawyer also looks at tax. They work out what inheritance tax your estate could pay and how the allowances, exemptions and reliefs could reduce it. They check that the way you own your home and your pension nominations fit with your will.

Unlike an online will service, a solicitor can advise on complicated situations such as second marriages, children from different relationships, a family business or property abroad. Solicitors are regulated by the Solicitors Regulation Authority, and firms like Osbornes that are authorised by the SRA must hold professional indemnity insurance.

Why choose Osbornes Law?

Our private client team is recognised by The Legal 500 and Chambers High Net Worth. We advise individuals and families across London and beyond, including clients with property and family in other countries.

“Very good at general advice on estate and inheritance tax planning and dealing with IFA’s where trusts have funds under investment.”

The Legal 500, 2026

Because we also have a specialist inheritance disputes team, we know how wills and trusts are challenged. We agree fees with you at the start and tell you in advance if anything could change them.

Speak to our estate planning lawyers today

To speak to one of our estate planning and inheritance tax solicitors, call us on 020 7485 8811 or fill in the contact form below.