UK Wills + Estate Planning Checklist (2026/27)
UK wills + estate planning checklist 2026/27: 12-item checklist - making a will (DIY vs solicitor £150-£500), Lasting Power of Attorney £92×2, Inheritance Tax planning (NRB £325k + RNRB £175k), trust considerations, pension nomination forms, life insurance written in trust, digital assets + funeral wishes, gift register + 7-year PET tracking.
Overview
Comprehensive UK wills + estate planning checklist for 2026/27: 12-item action list including making a will (DIY £30-£90 vs solicitor £150-£500 vs Will Aid November), Lasting Power of Attorney £92×2, Inheritance Tax planning (NRB £325k + RNRB £175k + spouse transferability for £1m couple), pension nominations (April 2027 IHT reform), life insurance written in trust, lifetime gift tracking, trust considerations + annual review cadence.
12-Item Estate Planning Checklist
| Item | Cost | Why it matters |
|---|---|---|
| Make a valid will | £150-£500 solicitor / £30-£90 DIY template / FREE Will Aid in November | Without will: intestacy rules apply. Cohabitants + stepchildren get nothing. £322k spouse statutory legacy may not match wishes |
| Property + Finance LPA | £92 OPG fee | Attorneys can manage bank accounts, investments, property sale, bills, tax. Without LPA: family must apply to Court of Protection (£421 application + £100 assessment fees + 4-6 months delay per gov.uk/become-deputy/fees) |
| Health + Welfare LPA | £92 OPG fee | Attorneys make medical + care decisions when you lack capacity. Includes life-sustaining treatment decisions if you wish |
| Pension nomination updates | Free - online form per pension | Pension lump sum death benefits pass per nomination, NOT will. Update on every life event (marriage, divorce, new child, partner change) |
| Life insurance written in trust | Trust setup ~£30-£100; insurance premiums separate | Insurance payout bypasses estate (no IHT), pays beneficiary direct, no probate delay. Major efficiency for IHT planning |
| IHT planning review | Free DIY assessment / £200-£2k for specialist | NRB £325k + RNRB £175k = £500k single / £1m couple. Estates above face 40% IHT. £500k+ estates need active planning |
| Lifetime gifts register | Spreadsheet - free | Track £3k annual exemption use, £250 small gifts, regular gifts from surplus income, large gifts for 7-year PET clock |
| Trust considerations | £500-£2k+ for trust setup | Discretionary trust for children's inheritance protection / generation-skipping / vulnerable beneficiary planning |
| Funeral wishes + digital legacy | Free - written list | Reduces family stress + ensures wishes followed. Digital legacy: passwords vault for accounts + online presence |
| Joint vs sole ownership review | Conveyancing fee if changing | Joint tenants pass by survivorship outside will. Tenants in common pass per will. Choose deliberately for IHT + family planning |
| Executor selection + appointment | Included in will cost | Choose 2 executors typically - family member + professional / solicitor. Or 2-3 trusted family. Professional executor fees ~1-3% of estate |
| Annual review of plan | Free - DIY check / £100-£300 with adviser | Life events change everything: marriage, divorce, birth, death, property purchase, business sale. Review annually |
Related guides
- UK Lasting Power of Attorney 2026/27 - LPA detail.
- UK Intestacy Rules 2026/27 - no-will consequences.
- UK Inheritance Tax Rules - NRB + RNRB mechanics.
- UK IHT on Pensions April 2027 - upcoming reform.
- Pension IHT calculator (April 2027) - quantify the bill on your DC pot.
- BPR / APR £1m cap calculator - business + farm IHT relief modelling.
- UK Probate + IHT400 2026/27 - executor process.
Frequently asked questions
DIY will vs solicitor-drafted will?
DIY (£30-£90 templates): appropriate for simple estates - one spouse, children, modest assets, no complex bequests, no business interests, no IHT concerns. Templates available from WHSmith, Smith's Will Pack, Co-operative Legal Services. Risks: incorrect witnessing (Section 9 Wills Act 1837 - 2 witnesses both present at signing), ambiguous wording, missing executor appointment, not updated for life changes. ~20% of DIY wills face challenges. Solicitor-drafted (£150-£500 for simple wills, £500-£2,000+ for complex): full review, proper execution + storage, advice on IHT + trusts. Recommended for: estates over £500k, business owners, blended families, cohabiting partners, special needs beneficiaries, estates spanning multiple jurisdictions. Annual Will Aid (November) - solicitors donate fees to charity; high-quality wills for ~£100 donation.
What's the IHT-free amount in 2026/27?
Nil Rate Band (NRB): £325,000 - tax-free portion of estate. Frozen since 2009; freeze extended to April 2031 (Autumn Budget 2025, from the April 2030 end set at Autumn Budget 2024). Residence Nil Rate Band (RNRB): £175,000 - additional band if main residence passes to direct descendants (children, grandchildren). Married couples: NRB + RNRB transferable to surviving spouse, so combined estate can be £1m IHT-free (£325k × 2 + £175k × 2). Above the threshold: 40% IHT. Charity reduces rate: 36% IHT if 10%+ of net estate passes to qualifying charity. Tapered relief on PETs (Potentially Exempt Transfers): full IHT at 40% if death within 3 years; tapered down to 8% at 6-7 years; full PET if survives 7 years.
What about pension on death?
Major IHT planning lever. Pre-April 2027: pension pots PASS OUTSIDE the estate (not subject to IHT). Death-in-pension: under age 75: tax-free to beneficiaries; age 75+: beneficiaries pay Income Tax at their marginal rate. April 2027 reform (announced Autumn 2024 Budget, Finance Bill 2025/26): unused DC pension funds enter the IHT estate. Spouse exemption preserved + charity exemption preserved. Most affected estates: high-net-worth + those with large pension pots. Reform timing: from 6 April 2027. Important: pension NOMINATION must be in place - pensions follow nomination, NOT will. Review nominations annually + after major life events. See our April 2027 deep-dive.
When do I need a trust?
Trusts useful when: (a) Minor children: bare trust holds inheritance until 18 (or later if you choose). Trustee manages investments. (b) Vulnerable beneficiary: disability-specific trusts (Disabled Person's Interest, Special Needs Trust) to preserve means-tested benefits. (c) Generation-skipping: discretionary trust for grandchildren - assets out of children's estate for IHT purposes. (d) Spousal protection: Immediate Post-Death Interest (IPDI) trust giving spouse income + capital protection from later remarriage / care fee risk. (e) Business asset protection: family trust holding business interests. Discretionary trust costs: £500-£2,000 to set up; ongoing administration ~£500-£1,500/year + 10-year periodic IHT charges + exit charges. Worth it for estates £500k+; usually overkill for smaller estates.
How much can I gift annually?
(a) £3,000 annual exemption per person (donor). Carry forward 1 year if unused = potentially £6k in next year. (b) £250 small gifts to as many people as you like (cannot combine with £3k to same person). (c) Wedding gifts: £5,000 (child), £2,500 (grandchild / great-grandchild), £1,000 (other). (d) Gifts from surplus income (Section 21 IHTA 1984): UNLIMITED if (i) gifts are part of normal expenditure, (ii) from income not capital, (iii) you maintain usual standard of living after gifts. Powerful tool: regular gifts above the annual exemption fall under this. (e) Charity gifts: unlimited, tax-free. Above exemptions: PET 7-year rule - taper 0/20/40/60/80/100% depending on years between gift + death. Tracker spreadsheet for all gifts strongly recommended.
What if I die without a will?
Intestacy rules apply (Administration of Estates Act 1925). Briefly: spouse gets £322k statutory legacy + 50% of remainder (with children) OR all (no children). Children share 50% remainder. No spouse + no children: parents, then siblings, then more distant relatives, then Crown. Cohabitants: NOTHING. Stepchildren (unadopted): NOTHING. Most estates without a will pass per intestacy in unintended ways. Critical: even simple wills prevent intestacy problems. See our intestacy guide.
What about digital assets?
Increasingly important: digital legacy includes social media accounts, email, photos, cryptocurrencies, online business assets, password vaults, online subscriptions. Best practice: (a) Maintain password vault (1Password, Bitwarden, Dashlane) with master password shared via will or secure mechanism with executor. (b) Document key digital assets - crypto wallets, intellectual property, online income streams. (c) Set up legacy contacts on Apple iCloud, Google, Facebook, Instagram (allows post-death access by designated person). (d) Cryptocurrencies require specific care - seed phrases, hardware wallet recovery. Loss = permanent. (e) Will may need specific provisions for digital assets; modern solicitors include digital legacy clauses.
How often should I review my plan?
Annually + after life events. Triggers requiring immediate review: (a) Marriage / divorce - will automatically REVOKED by marriage; divorce removes ex-spouse beneficiary clauses but not always cleanly. (b) Birth of child / grandchild. (c) Death of named beneficiary or executor. (d) Major asset acquisition / disposal (house, business, inheritance received). (e) Change in family circumstances (estrangement, marriage of beneficiary). (f) IHT threshold changes or significant change in net wealth. (g) Move abroad / return from abroad. Annual non-trigger review: 30 minutes checking will, LPAs, pension nominations, life insurance trust beneficiaries. Free if DIY; £50-£200 with solicitor if changes needed.