Why a conversation about inheritance tax is worth having

Helen McGinty, Head of FA Distribution
2 March 2026

I want to ask you one thing as you read this article – and that is not to stop. That’s because I’m going to talk to you about a difficult topic. A topic a lot of us understandably want to avoid. But a topic that taking a bit of time to really think about could put you and your family in a better position.

I’m talking about when you’re no longer here. Yep. I know. Not an easy thing to consider at all. Change the subject, please. Let’s talk about the weather, sport – heck, even politics. Anything but that.

I absolutely get it. But please do stick with me. Because the hard truth is that it’s going to happen one day. And by having a conversation about it now, you could take meaningful steps that make a difficult time less complicated for your loved ones.

In my role as Senior Financial Adviser at Skipton Building Society, I speak to a lot of customers about this subject. I always say that we’ll take it slowly. That I’m here to offer reassurance and consider their individual situation. Because by thinking about the unthinkable together, I can help my customers make plans to support their family and gain peace of mind about the legacy they leave behind.

I could do the same for you.

Why thinking about your legacy is so important

You’ve worked hard over your life. You’ve built up a certain level of wealth, including assets like the home you live in. One day, it will become an inheritance for someone else. And that’s where planning ahead is really important.

When the time comes, there will be all sorts of legal procedures your loved ones need to follow. Without clear plans in place, it can be messy and complicated. What’s more, the inheritance might not be passed on in the way you want it to be. There might also be tax implications. More on that later.

In short, it could get stressful and confusing, when it doesn’t need to be.

You might also need to think about inheritance tax

This is what happens. When you pass away, an assessment is carried out on the value of your assets (which is known as your estate). If the collective value of your estate is above a certain limit, your loved ones would usually have to pay inheritance tax at a rate of 40%. For example, if the estate is £50,000 above the limit, the tax bill would be £20,000.

We each have a personal threshold of £325,000 before inheritance tax applies. If you’re married, in a civil partnership or widowed, you have £650,000. And if you plan to leave your home to a direct descendent, you could each get an extra £175,000 allowance before inheritance tax applies.

It sounds like a lot, doesn’t it? But when you total up the value of the assets that make up your estate, you might be surprised how much it all adds up to.

Your estate is everything you own, minus any debts like a mortgage. So your home, your car, your savings and investments, all the way through to items of notable value. Antiques, jewellery – even your home furniture.

From April 2027, unused pensions will also start to be included in your estate for inheritance tax purposes.

What can you do about inheritance tax?

If all this has left you feeling a bit helpless, please don’t despair. That’s because there are ways you could address, reduce and maybe even eliminate a potential inheritance tax liability. It requires a bit of planning. And it isn’t something to put off. The longer you wait, the fewer options there might be and the higher the potential costs.

This is where a conversation could be worth having. At Skipton, we have a team of financial advisers who can explore your situation, including checking if inheritance tax is something you need to consider.

We could research and present options for managing your wealth. Everyone’s situation is different, and we will treat you that way. It’s about giving you recommendations you would be comfortable considering. This might include making/updating a Will, gifting money to loved ones, setting up special trusts, or insuring yourself against a potential tax bill.

Best of all, there’s no upfront fee to hear our personalised advice, or any pressure to act. We’ll give you the facts and your options, so you can make informed decisions. You won’t pay a penny unless you decide to take up a recommendation.

To start you off, we offer a free initial consultation

You just need to provide a few details about your situation. We’ll be able to give you an indication of whether inheritance tax is something you need to consider. At the end of this free chat, you can decide if you want to arrange a no-obligation financial advice meeting.

Even if it’s good news and your estate should be okay, we can discuss ways an adviser can help you plan your wealth – and the legacy you want to leave your family.

An opportunity to make stronger plans, and gain peace of mind about looking after your loved ones – that’s a conversation worth having.