An Edinburgh family thought they were simply clearing out their mother’s home. Instead, they uncovered more than 100 forgotten silver heirlooms tucked away in the attic. Initially valued at around £23,000, the collection eventually sold for almost £60,000 at auction, demonstrating how easily valuable assets can go unnoticed.
Most estates won’t contain a hidden collection of silver. But many contain assets whose true value only becomes clear when someone else has to piece everything together.
Imagine your loved ones administering your estate. They expect the process to be straightforward. There’s a Will, the family home, and a few familiar financial accounts.
Then the surprises begin.
A holiday apartment in Portugal that’s now worth far more than when you bought it. A vintage watch collection. Cash gifts you’ve made to your grandchildren over the years. Jewellery that was inherited from a parent. The buy to let property you purchased years ago. Even your pension, which from April 2027 could form part of your estate for inheritance tax purposes. A collection of artwork or antiques that’s been in the family for generations. Even the classic car you’ve spent years restoring.
By the time every asset has been identified and valued, your estate can look very different from the one you planned for.
At a glance: Your wealth goes beyond your home
- Your estate is likely to include more than just your home and savings.
- Property, pensions, valuable possessions, investments, and certain lifetime gifts can all contribute to its value.
- Some assets may be worth far more than you realise.
- Keeping records and reviewing your estate regularly can make things much simpler for your loved ones and help ensure your wishes are carried out.
What actually counts as your estate?
Nearly six in 10 (59%) of UK adults say inheritance tax rules are confusing, according to research by Canada Life. Meanwhile, only 15% feel confident they know how much they can give away each year without it counting towards inheritance tax.
The reality is that your estate is rarely just your home and your bank account. It’s everything you own, less any outstanding debts, and understanding what falls within it is one of the first steps towards making informed decisions about passing on your wealth.
That includes your family home, but it could also include:
- Holiday homes in the UK or overseas
- Buy to let properties
- Pensions
- Savings and investments
- ISAs
- Valuable jewellery
- Watches
- Artwork and antiques
- Cars
- Business interests
- Certain gifts you’ve made during your lifetime
Some of the most valuable assets in an estate are often the easiest to overlook because they’ve simply become part of everyday life.
While each asset may seem relatively modest on its own, together they can have a significant impact on the value of your estate and how your wealth is eventually passed on.
The forgotten gifts
Passing wealth on during your lifetime can also affect the value of your estate and how it is eventually administered.
Depending on the circumstances, gifts you’ve made may still need to be considered. That could include cash gifts to family members or valuable items such as jewellery, artwork or antiques.
Good record keeping can make a significant difference. More than half of over 55s who had given financial gifts during the previous seven years had kept no record of them. Meanwhile, 59% didn’t realise that giving away furniture, jewellery or antiques can count as a gift for inheritance tax purposes.
Without clear records, executors may face additional paperwork, delays and questions when administering your estate.
There are also situations where a gift may still be treated as part of your estate. According to HMRC’s guidance on inheritance tax and gifts, this can happen if you continue to benefit from an asset after giving it away. For example, if you transfer your home to your children but continue living there without paying full market rent, HMRC may still include its value when calculating inheritance tax.
Don’t overlook your pension
More than half (54%) of UK adults with pensions haven’t completed an expression of wish form, while 46% haven’t considered who should inherit their pension, according to Canada Life.
For many people, a pension is one of their most valuable assets, yet it’s often overlooked when thinking about an estate. From April 2027, unused pension funds are also expected to form part of your estate for inheritance tax purposes, making it even more important to factor them into your planning.
It’s also worth keeping a clear record of all your pensions. If you’ve built up several workplace pensions over the years, tracking them down can be time consuming and could create an unnecessary headache for your loved ones when they are trying to administer your estate.
Reviewing your expression of wish forms and keeping your pension paperwork organised, particularly after major life events, can help ensure your pension reflects your wishes and fits alongside the rest of your estate planning.
Your holiday home can reshape your estate
A holiday home in Spain may be a place where your family has spent years creating memories, but it is also an asset whose value can have a substantial effect on your estate.
A property that once seemed like a modest purchase may now represent a significant proportion of your wealth. This can bring your estate closer to, or beyond, inheritance tax thresholds without you fully realising it.
UK properties will generally need to be included when the value of your estate is calculated. Overseas homes may also fall within the scope of UK inheritance tax, depending on your residence history and personal circumstances. From 6 April 2025, overseas assets may be subject to UK inheritance tax if you are classed as a long-term UK resident, according to the UK government’s guidance.
An overseas property can also add another layer of complexity. Local succession laws, taxes, ownership arrangements and exchange rates may all affect how it is valued and passed on. Taking advice in both countries can help ensure the property is considered as part of your wider estate plan, rather than being dealt with separately when the time comes.
The hidden value of everyday possessions
Fans of the BBC’s Antiques Roadshow will know that appearances can be deceiving. In one memorable episode, a painting bought from a charity shop for just £400 was revealed to be an original Van Dyck masterpiece worth around £400,000. It was a remarkable discovery, but it also illustrates a wider point: the true value of an item isn’t always obvious.
The same principle can apply in your own home. A second hand Rolex you bought on a whim may now be worth significantly more than you paid for it. An engagement ring, a painting inherited from a grandparent, a designer handbag or a collection of coins, wine or antiques could all have increased in value over time.
Because these possessions become part of everyday life, their financial value isn’t obvious. Families often think of them in sentimental terms rather than monetary ones, and many aren’t professionally valued until an estate is being administered.
Reviewing valuable possessions every few years and obtaining up to date valuations where appropriate can help ensure your estate reflects what your assets are actually worth. This can help your executors by reducing uncertainty and avoiding unexpected surprises.
Estate planning isn’t about expecting the worst
Many people avoid reviewing their estate because it feels uncomfortable. In reality, it’s something you can do now that will reduce the burden on your family when the time comes.
Taking stock of what you own, keeping records of gifts, and ensuring your Will reflects your current circumstances can support your family when they need to deal with your estate.
It can also help ensure your wishes are carried out in the way you intended.
If you’re wondering when to start thinking about what you’ll leave behind, planning early can give you more options and greater peace of mind.
If you’d like to better understand what forms part of your estate or review whether your plans still reflect your wishes, a Flying Colours adviser can help. Together, we can review your assets, understand how they fit into your wider financial plan and help ensure your estate planning is as up to date and well-structured as possible.
You can arrange a conversation with an adviser 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.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or Will writing.
Planning horizons are illustrative and will vary based on individual health, circumstances, and life expectancy.