Inheritance planning and advice require a tailored strategy that’s personalised to your exact needs and situation. So, it’s important to use a professional who can explain any tax implications and put appropriate measures in place to protect your estate. We share some guidance to help you find and choose the right inheritance financial advisor.
Getting the correct inheritance tax advice
Inheritance tax (IHT) planning can be a complex challenge. Whether you’re looking to organise your wealth to minimise the IHT burden or you’re the executor of someone’s estate, it’s important to get accurate advice. Tax-efficient planning in advance will also help to reduce the stress of managing someone’s estate upon their death.
HMRC has strict tax rules, such as settling the IHT bill within six months of someone’s death. However, there are certain exemptions and thresholds that can be used to reduce a future IHT bill. Depending on the circumstances, additional tax-efficient options such as gifting and trusts might also prove beneficial.
There is no ‘one size fits all’ solution when it comes to inheritance advice. As everyone’s situation is different, every estate planning strategy will vary too. Therefore, it’s essential to only receive advice from a qualified and experienced professional.
Solicitors often provide inheritance advice from a legal perspective, making wills and drawing up trusts. However, it’s recommended to talk to an inheritance financial advisor or planner in the first instance to ensure you have a tax-efficient estate planning strategy.
What is a red flag for a financial advisor?
When you are looking for a professional to advise you on an inheritance matter, it’s important to check they have the necessary experience and qualifications. Always check the Financial Conduct Authority (FCA) website for a list of registered professionals.
Never feel pressured into a decision or to purchase a product. You should not be pushed into investing or moving a pension. Also, be very wary if there’s a lack of transparency over someone’s fees or if they present a confusing or costly fee structure.
Poor communication and ignoring your individual needs are also red flags. Make sure you fully understand the purpose of any legally binding documentation. If there’s any doubt, check with your solicitor or another registered financial professional.
A trustworthy and registered financial planner will provide you with options so you can make informed decisions about your estate. They will listen to your queries, and they’ll be responsive to your questions or concerns. Inheritance advice should always be tailored to your individual needs and situation.
What should you not do when you inherit money?
If you have recently inherited money, then it’s important to check how the amount will impact on your estate value. Avoid being impulsive and moving money into a seemingly lucrative investment. Always assess every option calmly and with a qualified financial professional. Although your bank or building society might try to give you advice, this won’t be independent, and these individuals are not tax experts.
While you’re figuring out what to do with your inheritance, it can be wise to split large sums between multiple banks or building societies. The Financial Services Compensation Scheme covers a maximum of £85,000 per account. So, if anything were to happen to one of your accounts, then your inheritance will have some protection.
What can cause you to lose your inheritance?
Bad investment advice is sadly a common cause of people losing their inheritance, which is why you should only use registered financial professionals. Frauds and scams are common with unscrupulous people targeting older or vulnerable people. If you’re in doubt about any type of investment, always get it checked out by a qualified financial professional.
But you can also lose the right to your inheritance too. If you have a parent who has remarried, their will is automatically revoked, which means their new spouse or civil partner will inherit from your parent’s estate. Therefore, it’s important to make sure everyone in the family has an up to date will, especially after a big life event such as marriage.
Disinheritance is when someone has been deliberately excluded from inheriting from a will. This can happen when someone is estranged from their family – for example, due to a family fallout. However, family members can make a claim to the Courts against the estate if they feel they have been treated unjustly.
If you need more information, please read our blog, Financial Advice on Inheritance: What You Need to Know in 2025.
Financial Advisor – West Bridgford, Nottingham
By using an experienced inheritance financial advisor, you can prevent any issues when it comes to your estate and inheritance planning. You can decide how and when to use any inherited money in a way that’s right for your personal situation, while minimising IHT.
At Balance: Wealth Planning, you will always have full peace of mind that the advice you receive is from a trusted financial firm. Your first consultation will be free of charge, and we offer transparent fixed fees. Our aim is to help you manage your estate and inheritance in a tax-efficient way that eases the tax burden for you and your family.
If you need inheritance advice, please get in touch with our financial planners.
Sources:
https://register.fca.org.uk/s/
https://www.locktonlaw.scot/cmsUploads/news/files/Red_Flag_Checklist_-_Drafting_a_Will-1.pdf
https://fdc-law.co.uk/blog/an-end-to-disinheritance/
