News

The conversation around the “Great Wealth Transfer” seems to be continuing into 2025.  Whether your wealth is good, great or growing, it presents a timely reminder to focus on succession planning and to take a fresh look at what modern day estate preparation truly entails.

At David Allen, we take pride in providing practical advice tailored to your needs, and from a range of experts across Wills, pensions, investments, tax and whether you have a family business, agricultural estate or just personal assets, we understand what is required to create a succession plan that delivers complete peace of mind for everyone involved.

Why address your succession plan now?

As you prepare to pass your wealth to the next generation, the importance of getting it right has never been greater. Families today face complex estates, evolving family dynamics and digital assets, and proposed changes to legislation, such as Business Property Relief (BPR) and Agricultural Property Relief (APR), make early planning crucial.

With this in mind, my team and I have created a detailed checklist to help you identify any gaps in your current plan and guide you through the next steps of the succession planning process:

Our checklist for successful succession planning

1. Keep your Will current

First and foremost, ensure your Will is up to date and accurately reflects your wishes.  Decide on a reliable and knowledgeable executor to carry out your instructions and regularly review your Will to accommodate life changes such as marriages, births, or business growth.

2. Include digital assets in your estate

With digital activity continually on the rise it is important to record of all your digital assets, from online business accounts to crypto currencies.

3. Succession plan for your family businesses

Create a clear and legally binding succession plan for your business and clearly communicate your plans to your family members to manage expectations.
You can use trusts or other structures to protect business continuity and minimise tax liabilities.

4. Address Tax implications of your Plan

If you own business or agricultural businesses, make sure you informed about changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) and obtain professional valuations of your assets to avoid any challenges with HMRC.

5. Clarity on Cross Border Assets

If you hold assets over the borders or overseas, make sure legal processes, domicile rules and tax treaties are covered in your plan.

With many people owning second homes, businesses and having relatives in different locations regionally or internationally, it is vital that you understand the implications of international inheritance laws and ‘Grant of Probate’ processes (or their equivalents).

6. Establish Powers of Attorney.

Establish ‘Lasting Powers of Attorney’ (LPAs) for both financial and healthcare decisions.  This way, these trusted individuals can manage your affairs if you become incapacitated, preventing legal complications and ensuring your wishes are respected.

7. Minimise Disputes and Litigation.

Prioritise communicating your intentions clearly to your family and document the reasoning behind key decisions and consider involving independent mediators to advise on any potentially contentious issues.

8. Consider Charitable Giving

Reflect your philanthropic goals in your Will and consider the tax benefits of charitable donations.  You can work with our advisers to structure gifts in a way that maximises their impact for your chosen worthy cause.

If you would like further advice on creating or updating your succession plan, or a Will, please reach out to a member of our specialist team on 01228 711888 or mail@david-allen.co.uk.
We have advisers on hand at our Dalston, Dumfries, Penrith and Workington offices.