Think About Wealth and Later Life Planning Early or 'Delay and You Pay'
Published / Last Updated on 30/01/2026
We will not stop ‘banging the drum’ as the current government attacks our hard-earned wealth with ever higher inheritance taxes, frozen inheritance tax and capital gains allowances, higher stamp duties on investment property and now, new, 2% higher investment income taxes for Property Income, Savings Income and Dividend Income. In addition, the Care Act 2014, was supposed to come in force in 2025 and the government cancelled it meaning we are back to extremely low levels of just £23,500 capital that we can keep.
This video is yet another video to add to our mini-series about changing your mindset on wealth and pensions.
Previously, in the Change Your Mindset Series, we covered
Inheritance Tax on Pensions Means Retirement Strategy Reset IHT on Pensions - Reset Your Strategy
Inheritance Tax versus Pensions Tax Relief - Still Worth Saving? IHT on Pensions - Still Worth Saving?
Inheritance Tax on Pension Trustee Pay Outs on Death IHT on Pensions - Scheme Trustees Dilemma
Inheritance Tax on Pensions Use Fixed Term Annuity Excess Income Gifts Holiday Let Regime Abolished
We also delivered a new Trust Series, with 16 different trusts, all detailed in
Time To Act is Now with 16 Trusts to Protect Hard Earned or Inherited Wealth 16 Trusts to Protect Wealth
We Highlighted an Additional £2.5m IHT Nil Rate Band Opportunity
£5m IHT Free? Are Private Equity & Private Company Shares the IHT Investment Solution? £2.5m Nil Rate Band
We Launched a Financial Advice Review service for Protecting Assets for Care Fees and IHT
In Retirement, Investment, Inheritance Tax, Later Life and Care Planning Strategy Review TYE IHT Gifting
Think About Wealth Planning Early
To help you think about the above and make your own plans or have some thoughts before talking to us, we believe it will be helpful for you to consider the following:
If you are a true socialist, then do you nothing if you are happy to leave 40% of your estate on death to the government, for the benefit of ‘the people’ in inheritance tax or up to 100% of you all your wealth (save £23,500) for care fees.
If you wish to plan to protect some or all of your wealth for
- Your partner, children, grandchildren, future generations or even
- Creating a small or larger trust or even a small foundation or compound or charitable donation to further develop areas that you are passionate about then read on ….
Inheritance tax is the only tax that you can legally mitigate in the UK i.e., make (something bad) less severe, less serious, or less painful. With the right planning, you could even achieve £0 inheritance tax liabilities.
Certain types of trust and investments are ignored by the care fees means test, provided you have not made a deliberate ‘deprivation of assets’ when investing. For example, you invest whilst you are fit and healthy when there is no expectation of needing care in later life. Pensions funds, ISAs and Property are included in the means test, there are others that are not. See Care and Support Statutory Guidance 2023 (introduced 1st June 2023 and updated 18th February 2025) Care Fees Capital 2025
To consider all of this and more, please think about:
What are your personal priorities now? Income, capital growth, or both? Moving home? Moving overseas? Travel, home improvements, quality of life, volunteering locally or overseas? Gifts to children/grandchildren/weddings/house deposits? Simply having enough money to live day to day?
What are your personal priorities in later life? Having quality care? Protecting wealth from taxes?
What are your legacy priorities after death? Unmarried partner, children, grandchildren, future generations, stop the repeat IHT cycle for generation after generation? Or, as mentioned, a legacy for areas that you are passionate about?
Think about all these matters earlier than perhaps we have all had to do in the past and make plans for action sooner rather than later.
