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Estate Planning & Legal Services

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Services • Estate Planning & Legal Services

Estate planning is about making clear decisions today so that your wealth is passed on according to your wishes in the future. It provides structure, clarity, and reassurance for you and your family.

For UK clients, succession planning involves more than simply writing a will. It requires consideration of inheritance tax, pensions, property, business interest,s and family circumstances. It also requires coordination between financial advisers and legal professionals.

At Hoxton Wealth UK, estate planning forms part of a broader financial strategy. The firm works alongside regulated legal and tax professionals to help clients organise their affairs in a structured and tax-aware way, while remaining aligned with UK regulation.

This page provides a general overview of estate and succession planning in the UK. Individual circumstances vary, and tailored advice is essential.

What Is Estate and Succession Planning?

Estate planning is the process of arranging how your assets will be managed during your lifetime and distributed after your death.

Succession planning goes further by considering how wealth, property, or business interests transfer smoothly to the next generation or chosen beneficiaries, with minimal disruption and unnecessary tax exposure.

A clear estate plan typically considers:

• Your will and chosen executors
• Lasting Powers of Attorney
• Inheritance tax exposure
• Pension death benefits
• Trust structures where appropriate
• Gifting strategies during your lifetime
• Business succession arrangements

Without proper planning, assets may not pass as intended, and families may face avoidable tax or administrative complications.

Why Estate Planning Matters for UK Clients

1. Inheritance Tax (IHT)

Inheritance tax is currently charged at 40% on the value of an estate above available allowances.

For many families, rising property values mean estates can exceed these thresholds more easily than expected.

Current rules include:

• The Nil Rate Band
• The Residence Nil Rate Band
• Transfers between spouses or civil partners
• Potentially exempt transfers for lifetime gifts

Careful planning can help ensure available allowances are used effectively and that assets are structured appropriately. Tax rules can change, and outcomes depend on individual circumstances.

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2. Pensions and Death Benefits

Modern defined contribution pensions are often outside of the estate for inheritance tax purposes, but they still require nomination forms and structured planning.

In many cases, pension funds can be passed on efficiently, particularly where death occurs before age 75. The way benefits are structured and nominated can influence the tax treatment for beneficiaries.

Hoxton Wealth UK does not advise on defined benefit pension transfers or safeguarded benefits, but can advise on broader retirement and estate structuring within its regulatory permissions.

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3. Property and Family Wealth

For many UK households, the family home represents a significant proportion of total wealth.

Planning may involve:

• Reviewing property ownership structures
• Considering lifetime gifts
• Using trusts in appropriate circumstances
• Planning for downsizing or potential care costs

Each approach carries legal and tax implications and must be assessed carefully.

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4. Business Succession

If you own a business, succession planning becomes particularly important.

Considerations may include:

• Who will take over ownership or management
• Eligibility for Business Relief from inheritance tax
• Shareholder or partnership agreements
• Liquidity planning to cover potential tax liabilities

Early planning can help reduce uncertainty and support continuity for family members, co-owners and employees.

The Role of Wills and Powers of Attorney

A will is the foundation of estate planning. It sets out how your estate should be distributed and who is responsible for administering it.

Without a valid will, your estate is distributed according to UK intestacy rules, which may not reflect your wishes.

Lasting Powers of Attorney are equally important. They allow trusted individuals to make financial or health decisions on your behalf if you lose capacity. Without these documents in place, your family may need to apply to the Court of Protection, which can be time-consuming and costly.

Hoxton Wealth works alongside legal professionals to ensure financial planning and legal documentation are aligned.

Lifetime Gifting and Trust Planning

Some clients choose to reduce the size of their taxable estate during their lifetime.

Options may include:

• Making use of annual gift allowances
• Larger lifetime gifts that may become exempt after 7 years
• Placing assets into trust for children or grandchildren
• Structured gifts for education or housing support

These decisions require careful analysis. Once assets are given away or placed into trust, they may no longer be accessible to you. There can also be capital gains tax, income tax or inheritance tax implications depending on the structure used.

Advice should always be taken before implementing any gifting strategy.

Integrating Estate Planning with Financial Planning

Estate planning should not be viewed in isolation. It works best when integrated with:

• Retirement income planning
• Investment strategy
• Tax planning
• Business planning
• Protection arrangements

For example, how pensions are structured, how investments are held and how property is owned can all influence inheritance tax outcomes.

Hoxton Wealth’s role is to ensure these areas are coordinated, while legal drafting and formal trust work are carried out by appropriately qualified professionals.

Ongoing Review and Changing Legislation

Estate planning is not a one-off exercise.

Tax thresholds, pension legislation and family circumstances can change. Regular reviews help ensure:

• Your will remains appropriate
• Beneficiary nominations are up to date
• Trust arrangements still meet their objectives
• Tax exposure is understood under current rules

Periodic review supports clarity and helps prevent unintended consequences.

Why Work with Hoxton Wealth UK

For UK domestic clients, Hoxton Wealth provides:

• FCA-regulated financial planning
• Coordination with solicitors and tax advisers
• Integrated retirement and estate planning
• Clear, structured and transparent fee-based advice

The aim is not to provide legal services directly, but to ensure financial and legal planning work together coherently and efficiently.

Important Information

This content is for general information only and does not constitute legal or financial advice, or a recommendation. Tax treatment depends on individual circumstances and may change in the future. Inheritance tax rules, allowances and reliefs are subject to legislation and interpretation by HMRC.

Estate planning strategies, including gifting and trust arrangements, may involve risks and can have unintended tax consequences if not structured correctly. Professional advice should always be obtained before taking action.