Ask someone what they hope to leave behind and most people know the answer immediately.
Ask how that wealth will actually reach the next generation and the answer is usually less certain.
Legacy planning is often thought of as a simple process: write a Will, name your beneficiaries and let your assets pass on when the time comes. In reality, inheritance can be influenced by everything from ownership structures and tax rules to family circumstances and administrative delays.
As a result, there can be a surprising gap between what you intend to leave behind and what ultimately arrives.
At a glance: Six inheritance assumptions worth reviewing:
- “My Will guarantees everything will happen exactly as I intend”
- “The family home will be the biggest thing I leave behind”
- “What feels fair today will still feel fair in the future”
- “Inheritance tax only affects wealthy families”
- “My family will receive their inheritance quickly”
- “I can sort it out later”
Assumption 1: “My Will guarantees everything will happen exactly as I intend”
Did you know? Nearly half of UK couples (47%) admit they do not know where their partner’s Will is kept, while two thirds (66%) are in the dark about the location of their parent(s) Will, according to research by Canada Life.
A Will remains one of the most important estate planning documents you can have. However, it is easy to assume that once a Will is written, your wishes will automatically be carried out exactly as intended.
In reality, things are not always that straightforward.
A Will cannot help if loved ones do not know it exists or cannot locate it when it is needed. Family circumstances can also change over time. Relationships evolve, beneficiaries may die before you, and new assets may be acquired. Instructions that reflected your wishes a decade ago may no longer do so today.
The result is that the asset you think of as your legacy may not ultimately be the one that delivers the greatest value to future generations.
Reviewing your Will regularly and making sure those closest to you know where it is stored can help ensure your wishes remain clear, relevant and easier to carry out.
Assumption 2: “The family home will be the biggest thing I leave behind”
For many people, the family home is the asset they most associate with their legacy.
That may not always be the case.
According to the Office for National Statistics, private pension wealth now accounts for 42% of total household wealth in Great Britain, making it the largest component overall.
As a result, some people spend years planning their finances around the value of their property while paying far less attention to pensions, investments and other assets that could ultimately form a significant part of their legacy.
Assumption 3: “What feels fair today will still feel fair in the future”
Inheritance planning is often done years, or even decades, before assets are eventually passed on.
During that time, families can change considerably.
Women’s household incomes fall by an average of 50% in the year following a divorce, compared with a 30% decline for men, according to a Legal & General survey. Financial circumstances can shift much faster than many people expect.
As a result, arrangements that feel entirely fair today may not feel quite so straightforward in the future.
This is why inheritance plans should be reviewed periodically to ensure they continue to reflect your wishes and your family’s circumstances.
Assumption 4: “Inheritance tax only affects wealthy families”
Many people assume inheritance tax is a problem for someone else.
However, rising property values and frozen tax thresholds have brought more families into scope over time.
HM Revenue & Customs collected a record £8.2 billion in inheritance tax during the 2024/25 tax year.
The result is that some estates can face inheritance tax liabilities that beneficiaries were not expecting.
Understanding how inheritance tax may apply to your circumstances can help avoid unwelcome surprises and ensure more informed decisions are made during your lifetime.
Assumption 5: “My family will receive their inheritance quickly”
Inheritance is not always transferred immediately.
Before assets can be distributed, there may be probate, valuations, tax calculations, administration and, in some cases, property sales.
For beneficiaries, this can create delays at a time when they may already be dealing with emotional and practical challenges.
Delays are not uncommon. Ministry of Justice figures show that probate caveat applications reached more than 11,500 in a recent year, highlighting how disputes and administrative complexities can slow the process of settling an estate.
Understanding this in advance can help families set realistic expectations and prepare accordingly.
Assumption 6: “I can sort it out later”
Legacy planning often sits on a list of things to do at some point in the future.
The difficulty is that life rarely stands still. Family circumstances change, financial rules evolve, and health issues can arise unexpectedly.
A plan that reflected your wishes five or 10 years ago may no longer do so today.
Regular reviews can help ensure your arrangements continue to reflect your priorities and take account of changing circumstances.
If you have been putting off legacy planning, take a look at our article, “When should you start thinking about what you’ll leave behind?”, which explains why waiting may not always be the best option.
What is inheritance planning really about?
Inheritance planning is often viewed as a financial exercise. In reality, it is also about reducing uncertainty.
The aim is not simply to decide who receives what. It is to increase the likelihood that your wishes are understood, your affairs are organised and your family is protected from avoidable complications.
The inheritance you leave behind may never be entirely within your control. But careful planning can help narrow the gap between what you intend to pass on and what ultimately arrives. Take a look at our IHT Calculator to estimate how much inheritance tax your estate could face.
If you would like to review your plans, a Flying Colours adviser can help you take a more joined up view of your finances and work with you towards a clearer plan for retirement, legacy planning and beyond.
You can arrange a conversation here: https://fcadvice.co.uk/book-an-appointment/
Please note:
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term (minimum of 5 years) and should fit in with your overall risk profile and financial circumstances.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or Will writing. Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
Planning horizons are illustrative and will vary based on individual health, circumstances, and life expectancy.