At the same time, the Great Wealth Transfer is well underway. With significant sums due to move between generations over the coming years, later life has become a crucial point for refining plans and ensuring that assets pass on as smoothly as possible.
Why planning still matters in later years
Even with a Will in place, wealth transfer doesn’t always happen efficiently. Inheritance Tax (IHT), timing issues and lack of liquidity can all affect how much beneficiaries ultimately receive. Without preparation, families may be forced into difficult decisions, such as selling property or investments at an inopportune time.
Protection and estate planning in later life focuses on clarity, simplicity and reassurance. It’s about making things easier for loved ones and ensuring your wishes are carried out as intended.
Intergenerational gifting – supporting family while you can
More people are choosing to share their wealth while they’re still here to see the benefit. With changes in how pensions are treated for IHT purposes from next year, many people are considering gifting as an option to reduce their potentially liability. Helping family sooner, whether through gifting or releasing property wealth, has become an important part of modern legacy planning.
Lifetime gifting can be rewarding, but it also needs careful consideration. Gifting without coordinating it with wider estate planning can have unintended tax consequences or reduce flexibility later. Reviewing these decisions within a broader plan helps ensure generosity today doesn’t compromise security tomorrow.
Life insurance and IHT planning
Despite good intentions, wealth often doesn’t last as long as families expect. Research shows that around 70% of wealth is lost by the second generation and up to 90% by the third, typically through a combination of tax inefficiency, fragmented planning and lack of clarity for beneficiaries.
IHT is often one of the biggest concerns in later years, particularly where property and long‑term investment growth have increased estate values. Life insurance, especially whole‑of‑life cover, is commonly used as part of a strategy to address this.
When written into trust, whole‑of‑life insurance can provide a lump sum outside of the estate. This can be used by beneficiaries to help cover an IHT bill, without the need to sell assets or reduce what is passed on.
Used thoughtfully, this approach can:
- Preserve family wealth
- Protect property and long‑term investments
- Provide certainty and liquidity at a difficult time.
It’s not about eliminating tax entirely, but about making inheritance simpler and less disruptive.
Aligning wealth with your wishes
Later life is also a natural point to review Wills, trusts and beneficiary arrangements. Circumstances change, relationships evolve and legislation shifts. Keeping plans up to date helps ensure they continue to reflect your intentions. This is also an opportunity to communicate clearly with family members, reducing uncertainty and helping everyone understand the role wealth is intended to play.
Peace of mind for you and your family
At this stage of life, financial planning is about peace of mind. Knowing that wealth will be passed on thoughtfully, efficiently and in line with your values can provide confidence and reassurance; not just for you, but for those you care about.
You’ve spent years building security. Taking the time now to refine your legacy planning with your Finli planner can help ensure that what you leave behind is support, not complication, for the next generation.
With the right approach, later‑life planning can turn wealth into a lasting gift rather than an unanswered question.