Tax and inheritance planning involves arranging your finances in ways that help to reduce or eliminate the amount of 

, which your family will be required to pay on the value of your estate when you die 

How Inheritance Tax works: thresholds, rules and allowances

Tax planning can ensure you are making the most of existing tax allowances, and it can structure your finances in ways that make your income and 

. For example, a wealth manager or financial adviser specialising in tax planning could:

Estate planning in 2025

Make sure you are maximising the return on your investments by making use of your annual 

Recommend you invest in tax-efficient investment vehicles, such as 

 Trusts, the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme, which offer significant tax relief on the amount you invest.

 contributions, thereby passing on pension funds tax-free to your spouse and family without breaching any allowance limits.

If you’re approaching retirement, they can structure your investments and pension to reduce the amount of tax you pay on your annual retirement income.

Inheritance tax often catches families unawares and leaves them facing an unexpected tax bill from 

. If you’re planning to leave behind an inheritance for your loved ones, a 

can help you to consider a number of inheritance planning options that will allow you to reduce the amount of inheritance tax your family is likely to pay.

How to gift your way to a lower inheritance tax bill

For example, inheritance tax planning can help you to:

Make full use of current inheritance tax allowances, such as the nil-rate band and residence nil-rate band.

Recommend gifting strategies that reduce the value of your taxable estate, without falling foul of HMRC rules.

Make arrangements to place some of your assets into trust, so they can be left to children, grandchildren or anyone else you choose, without forming part of your taxable estate.

Take out a life insurance policy that could cover any inheritance tax bill.

How do you pay for Tax and Inheritance Planning?

Most wealth managers will be happy to have an initial meeting with you free of charge. During that meeting, they’ll explain any future payments you’ll be expected to make. You can expect to pay an ongoing management fee for the services you receive from your wealth manager, and you may need to pay for any specific services, such as setting up a trust 

Ongoing financial advice services

People feel most uncomfortable talking about two things: money and death. So, it’s not unusual if you go into the meeting feeling a little apprehensive. Don’t worry though, the wealth manager you meet with will be an expert in this area and will be able to put you at ease. The wealth managers we work with have been carefully chosen based on their ability to offer sensitive but straightforward advice. You should leave the meeting feeling that you’ve taken a big step towards putting your affairs in order.

It’s important to understand that tax planning and tax efficiency is not the same as tax avoidance. You are perfectly entitled to use tax planning strategies that legally reduce the amount of tax you (or your family) are required to pay. Tax avoidance involves bending the rules by making transactions that serve no purpose aside from avoiding tax. None of the wealth managers we put you in touch with will ever recommend a service or product purely for the means of tax avoidance 

Reforming rates: Capital Gains Tax and Carried Interest

Tax and inheritance planning are two areas where it really does not pay to ‘do-it-yourself’. Tax rules can change frequently, and it’s easy to forget to keep estate planning up-to-date. Working with a professional who knows tax legislation inside out can be a real advantage when it comes to reducing the amount of tax you need to pay. Working with a professional who knows tax legislation inside out can be a real advantage. They’ll often reduce the amount of tax you need to pay and ensure your tax planning strategy is kept up-to-date.

 – Strategic use of reliefs, allowances, and tax structures helps maximise what passes to future generations.

 – Lifetime gifts, used alongside the seven-year rule and exemptions, can significantly cut IHT liability.

 – Trusts and other legal structures give control over how wealth is distributed while safeguarding assets from tax and disputes.

 – Coordinating inheritance tax and capital gains tax planning prevents erosion of wealth during transfers.

 – Written agreements and records ensure HMRC compliance and reduce the risk of family conflicts.

 – Early engagement with wealth managers and tax specialists creates more options for estate planning and wealth protection.

Tax and Inheritance Planning

Financial wellbeing means different things to different people, but without it, you’ll spend more time worrying and less time focusing on the things that matter.


Mental wellbeing has become a major trend in recent years, and it’s really not hard to see why. You don’t need us to tell you that we live in ‘unprecedented’ and highly uncertain times that can take a toll on anyone. Fortunately, people now recognise the importance of mental wellbeing and practising self-care during times of stress. And, thankfully, there’s now much less of a stigma attached to talking about mental health, and greater support available for people to get help with their mental wellbeing, should they need it.


But what about financial wellbeing? Well, in our view, it should be viewed as equally important, and something that everyone should care about. After all, our financial wellbeing has a major influence on our overall state of mind, and can also seriously impact our mental health 

Global mental health crisis hits workplaces

People might think that feeling anxious or concerned about your finances only applies to those who are in debt, have a low income or are worried about losing their job. But that’s simply not the case. Just as anyone can experience times when their mental health is low, everyone can sometimes feel in need of a bit of support when it comes to their financial wellbeing 

Money worries and mental health

That’s because, in our experience, financial wellbeing is rarely just about how much money you earn or how much you’ve accumulated. It’s about how you feel. We would define financial wellbeing as this:


Feeling in control of your financial present, and planning for a financially secure (and enjoyable) financial future.


For many people, their uncomfortable relationship with money starts when they are young, but those habits (good or bad) tend to stay with us as we get older. We all know people who seem to always be living beyond their means, just as we know people who are comfortably well-off but also hate spending a penny if they can avoid it.

We would also place into this category those people who put off making financial decisions (and miss out as a result), or those who don’t want to take any 

 with their money, and as a result leave their wealth languishing in non-interest paying savings accounts, where their money is losing its value. Whatever the situation, breaking out of these bad habits is not only the best way to achieve financial wellbeing, it’s the only way 

Understanding consumer financial wellbeing through banking data

So, how can you achieve financial wellbeing?

There are two key elements to financial wellbeing that everyone should focus on. The first is taking control of their financial present, and the second involves planning for their financial future.

Behavioural research suggests that people who take charge of their financial present tend to experience more positive feelings about their overall financial wellbeing. And there are lots of different ways that you can take control back over your finances. For example:

Creating a plan that allows you to reduce or eliminate any ‘bad debts’ that you have, such as credit cards, store cards or personal loans.

Using that money to start investing regularly. The amount is less important than getting into the habit of setting aside a regular amount, and there are a lot of positives to be taken from investing wisely and one day reaching your goal 

Financial Lives cost of living (Jan 2024) recontact survey - Summary

If you have loved ones who depend on you for their income, consider taking out insurance policies (such as life insurance, critical illness cover or accident, sickness and unemployment insurance) that can help protect what you have and allow you to sleep easier at night.

A wealth manager can help to put you in control of your financial present, but preparing for an uncertain future matters even more. Here’s where working with a wealth manager can really help you make great strides on the path towards financial wellbeing. Of course, a wealth manager is not going to be able to help with complex emotional issues, that’s not their job. But they can help you to think about your finances in a non-emotional way, making it easier for you to make clear decisions that will benefit you in the long run.

One of the best things about finding a wealth manager is that you’ll be taking control of your financial destiny and getting someone else to take care of the worrying for you. They won’t just help you to focus on your immediate needs, they will also help you to make plans for the future as well.

, the first thing to do is to make sure that your finances are best placed to help you feel comfortable about whatever the future brings. This can include managing your investments, to help you achieve the best return for the risk you’re prepared to take, putting in place plans for your retirement as well as offering any more specialist services that you might need, for example, such as tax and estate planning, and specific insurance products to cover any circumstances that would make life difficult 

Household total wealth in Great Britain: April 2020 to March 2022

The best wealth management firms know that making people feel reassured about their wealth and financial circumstances is just as valuable as focusing on the money itself. After many years of working with top wealth managers, including time spent running a wealth management business, our experience is that people who talk to a wealth manager or a financial adviser feel more positive about their financial future as a result.

We’d go so far as to say that talking to a wealth manager is the best step you could take towards achieving financial wellbeing. And the sooner you have that conversation, the more likely that together you will be able to put a plan in place that ensures you achieve the financial future that you want.

Peace of mind is one thing that money can’t buy. But with the right wealth manager to guide you, financial wellbeing is definitely something you can find for yourself. If you’re ready for us to introduce you to a wealth manager who can put your mind at rest, why not get started today?

Financial wellbeing means control and confidence

, not just income, covering how secure you feel about your money now and in the future.

, such as high-interest debt, overspending, or leaving wealth in low-yield accounts.

 includes cutting debt, building an emergency fund, and protecting your family with insurance.

, through investment management, pension planning, tax efficiency, and estate strategies.

Wealth managers enhance financial wellbeing

, offering expert, impartial advice to optimise assets and reduce financial stress.

Strong financial wellbeing supports overall wellbeing

, linking smart financial planning with peace of mind and better life outcomes.

Are you looking after your financial wellbeing?

Specialist financial advice focused on making sure your 

 savings, pension plan and wider retirement fund last throughout 

—while planning for events such as later-life care and the rising cost of living. 

 data shows that a UK male aged 65 can expect an additional 18.5 years of life, and females 21.0 years on average, making longevity planning essential 

National life tables – life expectancy in the UK: 2021 to 2023

What areas will Retirement Planning cover?

Retirement planning usually includes starting a personal pension and reviewing your workplace pension scheme(s), tracing any lost pensions, and deciding the right type of pension for you. Advice can include pension annuity options, drawdown, pension contributions, and how to turn savings into reliable pension income. A robust strategy also considers tax-efficient 

 as an additional income source, and your attitude to investment 

 and return so the value of your pension can grow steadily 

Retirement income advice thematic review 

 will review your financial affairs, including any pensions you have and any small amount pots from old jobs. They’ll discuss your goals, preferred retirement lifestyle, and expected retirement age or pension age.


After the meeting, they will assess existing arrangements to ensure they’re working hard enough, calculate how much pension income you’ll need, and recommend a mix of 

. They will also check your national insurance contributions record and whether voluntary contributions could boost your new 

Knowing your state pension age matters. It determines when you can claim the State Pension and how your other assets should bridge any gap. Your adviser will explain eligibility, Pension Wise guidance, and whether topping up national insurance contributions is a good idea 

Your State Pension explained

Planning includes making sure you use available allowances so you don’t pay too much tax. Your adviser will explain the tax implications of contributions, drawdown, annuities and other retirement options, helping your money go a long way over decades 

Good Practice Guide: Advised Pension Income Drawdown

After the initial meeting, the financial adviser will present a clear proposal with recommendations, fees and charges. You’ll understand costs before any changes are implemented—a good place to make informed decisions with confidence.

Finding the right investment approach to meet retirement needs has become more complex. There are different ways to build a sustainable income—annuity, drawdown, ISAs and property—and each has trade-offs. It’s hard to judge how much you’ll need or the best mix without expert help.

People often delay planning because they fear they won’t have a comfortable retirement. In reality, even a small amount saved early can go a long way—and the 

 Retirement Living Standards give a practical benchmark for costs. Now is a good time to speak with a fully qualified financial adviser who can help create a tailored pension plan to support you and your family for the long term. A conversation today can shape a stronger financial future.

Retirement planning protects your future income

 – It ensures your pension pot, savings, and investments support your chosen retirement lifestyle and later life care needs.

 – Advisers help start personal pensions, consolidate workplace pensions, and create investment strategies for long-term retirement savings growth.

 – Wealth managers review pension pots, calculate income needs, and match investment plans to your risk tolerance.

 – Retirement strategies include using tax reliefs and allowances to maximise income across your retirement years.

 – A retirement planning proposal details recommendations, fees, and how your pension strategy will be implemented.

Expert guidance simplifies complex choices

 – With many pension and investment options, financial advisers give clear direction to secure retirement income.

Planning gives confidence for later years

 – Professional advice ensures your finances can sustain both you and your family throughout retirement.

Retirement Planning

Client services director at Compare Wealth Managers.

Paul Dredge

Bio

Articles from author

Tax and Inheritance Planning

Are you looking after your financial wellbeing?

Retirement Planning

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Financial well-being

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CONTACT US

Paul Dredge

Bio

Articles from author

Tax and Inheritance Planning

Are you looking after your financial wellbeing?

Retirement Planning

Start your journey to your Financial well-being

FIND OUT MORE

LEGAL

CONTACT US

Start your journey to your
Financial well-being