Planning ahead: Why lifetime estate planning beats a last-minute will

25th July 2025

Sally Farrow is a highly experienced tax adviser and Partner in the Private Client, Trusts and Probate team at Larking Gowen, a well regarded and long-standing financial and accountancy firm in Essex. Their commitment to community engagement is an integral part of their identity and mission.

Over 25 years, Sally has built a reputation for delivering thoughtful, strategic advice to individuals and families navigating complex tax and estate planning matters. On top of this, Sally is authorised to provide probate services by the Institute of Chartered Accountants in England and Wales (ICAEW).

Sally brings a wealth of expertise in inheritance tax planning, trust structures, and probate administration. She is particularly passionate about helping clients plan ahead, whether that’s through lifetime gifting, structuring their affairs for future generations, or ensuring their wishes are clearly documented and tax-efficient.

We asked Sally to explain how charitable giving is a powerful tool when proactive planning:

“While a will is essential for distributing an estate, it is not a substitute for comprehensive lifetime estate planning.”

Proactive planning enables individuals to manage Inheritance Tax (IHT) exposure, support charitable causes, and preserve family harmony, all while maintaining control of wealth transfer.

Lifetime planning offers key tax advantages. The annual exemption (£3,000) and small gifts exemption (£250 per person) can reduce the estate’s value year by year. Potentially Exempt Transfers (PETs) become fully exempt if the donor survives seven years. Early gifting also enables use of Business Property Relief (BPR) and Agricultural Property Relief (APR), which can reduce or eliminate IHT on qualifying assets however the proposed changes to these reliefs from April 2026 need to be fully considered.

Trusts provide an effective means of managing wealth across generations too. They allow individuals to retain control over assets while removing them from the taxable estate. While subject to their own tax rules, trusts offer flexibility and asset protection when structured appropriately.

Charitable giving is another powerful element of estate planning. Gifts to UK-registered charities are exempt from IHT, and those who leave 10% or more of their estate to charity can reduce their IHT rate from 40% to 36%. Lifetime giving may also attract Gift Aid, increasing the value of donations and offering Income Tax relief.

From a personal perspective, early planning fosters transparency and mitigates potential conflict. Clients can communicate intentions clearly, manage expectations, and avoid the risks associated with unexpected will provisions. Tools such as Letters of Wishes can further guide trustees and maintain family cohesion. I would encourage advisers to promote early lifetime estate planning to help clients achieve their financial and personal legacy objectives and secure wealth for future generations.

Importantly, effective estate planning requires collaboration. Solicitors, wealth managers, and tax advisers must work together to deliver holistic outcomes. Coordinated planning ensures legal structures align with financial strategies and tax efficiencies.