Five reasons to make estate planning your New Year’s resolution

Pledging to make 2026 the year that you finally organise your estate may not be the most exciting New Year’s resolution, but it is one of the most meaningful.

After you die, your estate – that’s everything you own – must be valued and then distributed to your beneficiaries. Plan your estate now, and you will gain peace of mind knowing that your wishes will be honoured and your loved ones cared for when the time comes.

In this article, we explain why estate planning is so important, no matter what your age or financial situation.

What does estate planning involve?

Estate planning typically involves deciding how your estate will be administered and divided when the time comes.

Most estate planning solutions cover the following important areas:

• Creating a will.
• Setting up trusts to protect assets.
• Putting Lasting Powers of Attorney (LPAs) in place.
• Inheritance Tax planning.
• Funeral wishes.
• Appointing guardians for minor children.

While some of these topics can be difficult to talk about, planning for the future now can provide great peace of mind for you and your loved ones.

Why is estate planning important? (The top 5 reasons)

If you’re still in two minds about whether estate planning should be a priority for you, let us explain why it matters, and why it’s never too early to put plans in place.

1. It puts you in control

Estate planning allows you to make important decisions about the future of your estate and how your loved ones will be protected if you die or lose the mental capacity to make your own decisions. If you haven’t planned your estate and you die without a will, everything you own is distributed according to the rules of intestacy, and the outcome may be different from what you wanted. Estate planning puts you in control of who inherits what and in what proportions, among other important decisions.

2. It protects your loved ones

Modern families come in all different shapes, and the rules of intestacy do not always reflect the relationships that mean the most to you. Estate planning ensures that after your death, your assets are passed to the people you choose, not just those the law dictates. You can also plan for inheritances for vulnerable beneficiaries, like children, to be placed in a trust to secure their future.

3. It can reduce your inheritance tax liability

Inheritance tax planning is an important part of estate planning. Without it, up to 40% of your estate above the tax-free thresholds could be lost to inheritance tax. Popular strategies for reducing the IHT bill include using all available allowances, making tax-efficient gifts, and placing assets into trusts. Our estate planning solicitors here at Hibberts Solicitors can provide advice on the best strategies for you, helping you to safeguard as much of your estate as possible for your family’s future.

4. It prevents family disputes and conflicts

If you don’t put pen to paper and leave behind clear instructions for how your estate should be divided, it can be difficult for families to come to an amicable agreement. It’s easy for disagreements to break out when families are left with ambiguity about your wishes during a time when emotions are already running high. Preparing your estate and creating a will makes your wishes clear and can help to prevent conflict and protect family relationships during a difficult time.  

5. It allows you to plan for your future care needs

Estate planning is about much more than just who gets what when you die. It also involves making important decisions about your own future, like how your care would be funded, where your assets would be held, and who would be granted Lasting Powers of Attorney if you need care or lose mental capacity later in life. Planning for the future now ensures your wishes are respected and reduces future stress for your family.

When should you start estate planning?

Estate planning shouldn’t be something you leave until later in life. None of us knows what the future holds, so having plans in place can provide clarity, protection, and peace of mind for you and your loved ones. You can plan your estate at any time, but many people start thinking about it after a significant life event, like buying a house, having children, or receiving an inheritance. After you’ve made your plan, your assets and circumstances will change over time, so it’s important to regularly review and update your plans.

If you’re searching for “estate planning solicitors near me”, look no further – here at Hibberts Solicitors, we offer estate planning solutions throughout Cheshire, Shropshire, and the surrounding areas. Give our team of specialist wills, trusts, and estate planning solicitors a call on 01270 624 225 or email enquiries@hibberts.com to learn more and receive tailored advice.