Estate & Inheritance

Legacy planning

Legacy planning is an essential part of managing the financial affairs of high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals.

5 min read

·  Published:

June 30, 2026

IN THIS INSIGHT

It ensures that your estate, hard-earned assets and legacy wills are distributed in line with your wishes, safeguarding the financial security of future generations. Effective legacy will and estate planning go beyond standard estate management. It addresses inheritance tax planning, the protection of wealth, and the creation of a lasting legacy that benefits your loved ones while minimising potential disputes.

What is legacy planning?

Legacy planning involves creating a comprehensive strategy to manage and distribute your estate, investments, and other assets after your death. It includes estate planning services such as:

  • Writing legally sound legacy wills to ensure clarity and security for your beneficiaries
  • Setting up trusts to protect assets and distribute them efficiently
  • Addressing probate and any potential disputes that may arise
  • Using legal services to ensure compliance with tax laws and regulations

This whole process ensures your financial affairs are professionally organised, allowing your loved ones to benefit fully from your estate while minimising tax liabilities and administrative delays.

Why is legacy planning important?

Without a well-structured legacy wills estate planning process, some of your wealth could potentially be lost to taxation, administrative expenses or legal disputes. Proper planning provides peace of mind, knowing that your loved ones, friends, and chosen beneficiaries will receive the maximum benefit from your estate. Legacy planning also ensures that important informed decisions, such as funding the education of minor children or safeguarding your family business, are left unchanged by unforeseen events.

Key reasons for legacy planning include:

  • Protecting your estate: Shielding assets from unnecessary taxes, disputes, and legal complications.
  • Securing the future: Ensuring financial stability for family members, friends, and loved ones during a potentially difficult time.
  • Maintaining your wishes: Preserving the integrity of your estate and ensuring your hard work benefits those you care about.
  • Providing clarity: Reducing ambiguity by documenting clear instructions for the distribution of assets.

What does the legacy planning process involve?

A comprehensive legacy planning process is tailored to your individual circumstances, goals, and priorities. It integrates a range of estate planning services designed to secure your wealth and fulfil your wishes. Key steps include:

  • Reviewing your estate: Assessing property, savings, assets, and liabilities to understand your financial situation.
  • Inheritance tax planning: Creating strategies to reduce tax liabilities in line with current tax laws.
  • Drafting legacy wills: Writing and signing legal documents to outline how your estate will be distributed clearly.
  • Setting up lasting powers of attorney: Ensuring trusted individuals can act on your behalf if required.
  • Life assurance: Providing additional financial support for your beneficiaries.
  • Making gifts: Reducing the taxable value of your estate by gifting assets or money.
  • Appointing executors: Selecting a management team or trusted members to oversee the execution of your wishes.
  • Regular reviews: Keeping your plan updated to reflect changing circumstances, family dynamics, or tax rules.

How to get started with legacy planning

Legacy planning can be complex, but with the right advice and services, it becomes a manageable and rewarding process.

The benefits of professional legacy planning:

  • Access to expert financial advisors, advice on tax rules, estate planning services and managing disputes.
  • A dedicated partner committed to securing your financial legacy.
  • Peace of mind that your estate will be managed according to your wishes.

Why choose legacy planning with Maritime Capital?‍

Maritime Capital can manage and guide you through a range of legacy and estate planning services, all tailored to the needs of HNW and UHNW clients with more than £50m of assets.

Our empathetic and experienced team provides trusted advice, ensuring that the wealth, property and other assets you have worked hard to achieve are managed effectively.

If you require assistance with inheritance tax planning, drafting legacy wills or managing your estate, we’ll create a strategy that reflects your aspirations and safeguards your wealth for generations to come.

Frequently asked questions

What is the difference between estate planning and legacy planning?

Estate planning focuses on the practicalities of distributing assets, while legacy planning takes a broader approach. It ensures that your wealth creates a meaningful and lasting impact for future generations.

Why is having a legacy will important?

A legacy will provides clear instructions on how your estate should be managed and distributed. It ensures your wishes and preferences are honoured and prevents unnecessary disputes among beneficiaries.

How can inheritance tax planning reduce liabilities?

Inheritance tax planning helps to minimise the tax burden on your estate through methods such as trusts, gifting, and efficient financial planning.

Can legacy planning help my family business?

Yes, legacy planning ensures a smooth transition of leadership and management, protecting the income and value of your family company for the next generation.

What happens if I don’t have a legacy plan?

Without a comprehensive plan, your estate may be subject to intestacy laws, which can lead to unintended outcomes, increased tax liabilities, and family disputes.

How can surplus income be used in legacy planning?

Surplus income can be a valuable part of your legacy planning strategy. By regularly donating surplus income to beneficiaries or into trusts, you may reduce the taxable value of your estate without affecting your lifestyle. This must be properly recorded and structured to meet HMRC criteria, so professional advice is recommended.

What is the nil rate band and how does it affect legacy planning?

The nil rate band is the threshold below which no inheritance tax is due. Making full use of this allowance, along with additional exemptions such as the residence nil rate band, can significantly reduce your estate’s tax liability. Expert planning helps you arrange your affairs to maximise these allowances effectively.

Why is it important to prepare your legacy plan with expert support?

The importance of working with a trusted person or team lies in the details. Legacy planning involves more than just legal paperwork, it’s about deciding how to structure your estate, dealing with complex assets, and preparing for changes in law or family circumstances. Our expertise ensures that every example and scenario is considered carefully, giving you peace of mind now and for the future.

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Estate & Inheritance

What is fair in a second marriage and estate planning?

Navigating the estate planning process in a second marriage can present unique challenges, particularly when taking previous marriages and existing family members into full consideration.

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Ensuring fairness for all parties involved requires careful thought, expert advice and a comprehensive estate plan.

Balancing interests in a blended family

A second marriage often involves blending families, which can complicate matters of inheritance and asset distribution.

Previous relationships may include children from a first marriage, while current spouses might have joint assets or separate property.

It’s crucial to balance the interests of the surviving spouse, step-children and children from a previous marriage or previous relationship.

Key considerations for estate planning in a second marriage

1 - Prenuptial and postnuptial agreements: Legal documents such as prenuptial and postnuptial agreements can clarify the division of assets acquired before and during the marriage. These agreements help protect the individual financial interests of both parties and prevent potential conflicts.

2 - Retirement accounts and life insurance policies: Designating beneficiaries for retirement accounts and life insurance policies is essential. Ensure that these designations reflect your current wishes as they will take precedence over any legal document like a will.

3 - Joint accounts and separate property: Decide how to handle joint accounts and separate property. Community property states may have different rules regarding property acquired during marriage, requiring careful planning to align with your estate goals.

4 - Asset protection and distribution: Consider the fair distribution of various assets, such as bank accounts, real estate, and other investments. An experienced estate planning attorney can help devise strategies and bespoke estate planning ideas to protect assets and ensure equitable distribution.

5 - Inheritance tax and estate taxes: Understanding the implications of inheritance tax and estate taxes is vital. Certain assets may be subject to estate tax, and proper planning can minimise the tax burden on your beneficiaries.

Creating a comprehensive estate plan

A comprehensive estate plan should address all aspects of your financial situation and family dynamics. Key elements include:

  • Wills and trusts: Establishing clear directives for asset distribution through wills and trusts helps avoid disputes. Trusts can also offer probate avoidance, ensuring a smoother transfer of assets.
  • Beneficiary designations: Regularly updating beneficiary designations for life insurance policies, retirement accounts, and other assets ensures that your current wishes are honoured.
  • Financial planning: Developing a solid financial plan that includes income plans for retirement and provisions for potential nursing home care.
  • Legal documents: Drafting essential legal documents with the help of knowledgeable estate planning attorneys ensures that your estate plan is legally sound and reflective of your intentions.

The impact of UK property laws on estate planning in second marriages

UK property laws can significantly influence the distribution of assets in a second marriage.

Understanding legal considerations such as joint tenancy, tenants in common, and the implications of the Matrimonial Causes Act is essential.

These laws can affect how property is shared or passed on, making it vital to integrate property law expertise into your estate planning strategy.

Strategies for integrating business interests into estate plans

For individuals with significant business assets, integrating these into your estate plan requires careful consideration.

Establishing trusts, buy-sell agreements, and succession plans can ensure that your business interests are preserved and managed according to your wishes.

This strategy helps protect the business from potential disputes and secures its continuity.

The importance of regular estate plan reviews

Regularly reviewing your estate plan allows you to adapt to changing family dynamics, financial circumstances, and legislation.

Life events such as remarriage, the birth of additional children, or changes in tax law can impact your estate planning needs.

Scheduled reviews ensure your estate plan remains current and reflective of your evolving goals.

Addressing potential conflicts

Second marriages can sometimes bring potential conflicts, especially when it comes to asset distribution and inheritance in the event of a spouse's death.

Transparent communication with family members, coupled with detailed legal documentation, can mitigate misunderstandings and foster harmony within the blended family.

By fostering transparency, you can address concerns early and ensure that everyone understands the intentions behind your decisions.

There need not be acrimony between a former spouse and a new spouse over children's inheritance, for example.

Professional guidance

Managing the complexities of a second marriage and estate planning requires the expertise of an experienced estate planning attorney.

At Maritime Capital, we specialise in providing bespoke estate plans tailored to the unique needs of high net worth individuals.

Our goal is to help you secure a fair and stress-free future for your family.

Contact usto learn more about how we can assist you in navigating the estate planning process in a second marriage, and the key financial issues surrounding it.

Estate & Inheritance

Who pays inheritance tax on gifts?

Inheritance tax in the UK can significantly impact how wealth is transferred to family members. Understanding who pays inheritance tax on gifts is crucial for high net worth individuals engaged in estate planning.

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Maritime Capital, specialists in UK property and wealth guardianship, offers expert guidance in navigating these complex waters, paying tax and ensuring that your wealth transitions as efficiently as possible.

Understanding inheritance tax on gifts

When you give a gift to someone, it may be subject to inheritance tax, depending on several factors, including the value of the gift, the recipient and the time elapsed since the gift was made.

Key points on inheritance tax and gifts

  • Inheritance tax threshold: The current inheritance tax threshold is £325,000. Gifts below this amount may not be subject to inheritance tax.
  • Annual exemption: You can give away £3,000 of gifts each tax year without them being added to the value of your estate. This is known as your 'annual exemption'.
  • Potentially exempt transfers: Gifts made more than seven years before your death are generally exempt from inheritance tax and are called a potentially exempt transfer.
  • Spouse or civil partner: Gifts to your UK domiciled spouse or civil partner are exempt from inheritance tax, regardless of value.
  • Wedding gifts: Wedding gifts are exempt up to certain amounts, depending on your relationship to the recipient.

Who pays the tax?

The responsibility for paying inheritance tax on gifts often depends on the circumstances of the gift:

  • If the gift is part of the estate: The executor or personal representative handling the estate is responsible for paying any tax due.
  • If the gift is subject to inheritance tax and not part of the estate: The recipient of the gift may be liable to pay tax.

Mitigating inheritance tax on gifts

  • Use of tax free gifts, exemptions and allowances: Make full use of the annual exemption, small gift exemption, and other relief available for wedding gifts and support for an elderly relative or child under 18.
  • Plan ahead: Consider making gifts early to benefit from potentially exempt transfers. Remember, the seven-year rule applies for gifts to be exempt from having to pay inheritance tax.
  • Lifetime gifts: These can reduce the value of your estate for inheritance tax purposes. However, the rules around such gifts are complex and professional advice is recommended.

Get strategic advice on inheritance tax At Maritime Capital, we understand that estate planning and managing inheritance tax liabilities are paramount for our clients. Our team of experts provides personalised advice, helping to structure your estate in a way that minimises tax liabilities while ensuring your wealth is passed on according to your wishes. Whether you’re looking to invest in commercial property or need strategic advice on transferring wealth to the next generation, Maritime Capital is here to assist. Contact us to learn how we can safeguard and nurture your family’s wealth.

Estate & Inheritance

What is the 7 year rule?

Understand the 7 year rule in UK inheritance tax and how it affects your ability to pass on wealth to loved ones.

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Maritime Capital, wealth guardians for high net worth individuals, can help you minimise your inheritance tax burden through effective planning.

What is the 7 year rule in inheritance tax?

Inheritance tax (IHT) planning is a crucial consideration for many high net worth individuals. While some inheritances fall below the tax-free threshold (currently £325,000 per individual, with additional allowances like the residence nil rate band available), without proper planning, larger estates may encounter a potentially large bill.

Understanding the 7 year rule in IHT is vital for maximising your ability to pass on wealth to loved ones while minimising their tax burden.

Maritime Capital are trusted wealth guardians for family offices and private clients, ensuring that your inheritance is managed with expertise and care.

A key aspect of managing an inheritance effectively involves understanding the intricacies of inheritance tax planning, and particularly the 7 year rule.

Who pays inheritance tax?

You do not pay inheritance tax on the first £325,000 you leave to other people, and currently fewer than 5% of estates pay inheritance tax. If the deceased was married or in a civil partnership, then anything they leave to their spouse or civil partner will be exempt, regardless of the estimated value of the deceased's estate.

Understanding the 7 year rule

The 7 year rule is a fundamental principle in UK inheritance tax legislation. It dictates that if you gift any part of your estate and survive for seven years after making the gift, the value of the gift is exempt from inheritance tax.

This rule is designed to prevent individuals from circumventing the system by transferring their assets shortly before death to avoid having to pay inheritance tax.

How does the 7 year rule work?

When an individual makes a gift, whether it is property, money, or other assets, and does not survive for seven years following this transfer, the value of the gift is included in the estate for inheritance tax purposes.

The tax rate applied to these gifts is on a sliding scale, known as taper relief, depending on how many years the giver survives after making the gift.

The closer to the seven-year mark, the lower the tax payable.

An example of the 7 year rule

Imagine you give your child a £100,000 gift two years before you pass away. The value of the gift would be added toyour estate for IHT purposes, potentially increasing their tax bill.

However, if you had given the same gift eight years before your death, it would generally be exempt from IHT, assuming you survived for the full seven years.

Transfers to a spouse or civil partner are not usually subject to inheritance tax (IHT), so if the first partner to die leaves their entire estate to the other, no tax will be payable.

Strategies to utilise the 7 year rule

Making potentially exempt transfers

One of the most straightforward ways to take advantage of the 7 year rule is by making what are termed "potentially exempt transfers" (PETs).

These are gifts made during your lifetime that will only be free of inheritance tax if you live for seven years after making the gift.

It's important to note that there is no limit on the total value of a potentially exempt transfer that one can make.

Annual exemption and small gifts

Each tax year, you have a £3000 exemption for gifts that can be given without affecting your inheritance taxthreshold. This unused annual exemption can be carried forward to the next tax year, allowing for a total exemption of £6,000if not used in the previous year.

Additionally, small inheritance tax free gifts of up to £250 per person per year are also exempt, as are wedding gifts within certain limits, regular payments made from your income, and gifts to spouses, civil partners, charities and political parties.

Estate planning and trusts

For larger estates or more complex situations, setting up a trust can be a strategic way to manage your assets and potentially mitigate how much inheritance tax is due.

For example, placing a property into a discretionary trust for the benefit of direct descendants might reduce the tax bill and preserve the value of your estate.

However, the rules around trusts and inheritance tax can be intricate, and professional advice is essential.