Estate Planning Decision Flowchart

A step-by-step visual guide to help you navigate estate planning decisions and identify the right strategies for your situation.

ResourceLast updated: February 2026

Start Here: Calculate Your Estate Value

Total Assets - Total Liabilities = Net Estate Value

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Step 1: Determine Your Allowances

Are you married/in a civil partnership?

  • YES → Potential allowances: up to £1,000,000
    • Standard NRB: £325,000 × 2 = £650,000
    • RNRB: £175,000 × 2 = £350,000 (if leaving home to children)
  • NO → Potential allowances: up to £500,000
    • Standard NRB: £325,000
    • RNRB: £175,000 (if leaving home to children)

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Step 2: Check RNRB Eligibility

Are you leaving your main residence to direct descendants?

  • YES → Include RNRB in your allowances
  • NO → RNRB not available

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Is your estate over £2 million?

  • YES → RNRB will be tapered (£1 lost per £2 over threshold)
  • NO → Full RNRB available

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Step 3: Calculate Potential IHT

Estate Value - Total Allowances = Taxable Estate

Taxable Estate × 40% = Potential IHT

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Step 4: Choose Planning Strategies

Is there IHT to pay?

  • NO → Focus on:
    • Keeping estate under threshold
    • Will planning for efficiency
    • Regular monitoring
  • YES → Consider strategies below ↓

Planning Strategy Selection

A. Do you own a business?

  • YES → Explore Business Property Relief (can give 100% relief)
  • NO → Continue to B

B. Can you afford to give away assets now?

  • YES → Lifetime gifting strategies:
    • Use annual exemptions (£3,000/year)
    • Make larger gifts (7-year rule applies)
    • Consider gifts out of surplus income
  • NO → Continue to C

C. Do you have life insurance?

  • YES → Ensure it's written in trust:
    • Keeps payout outside estate
    • Can cover IHT bill
    • Paid quickly to beneficiaries
  • NO → Consider taking out policy in trust to cover IHT

D. Do you have pension savings?

  • YES → Review beneficiary nominations:
    • Currently outside estate (until 2027)
    • Name beneficiaries to avoid probate
    • Plan for 2027 pension changes

E. Are you charitably inclined?

  • YES → Charitable giving benefits:
    • Donations are exempt from IHT
    • Reduce IHT rate to 36% if leave 10%+ to charity

F. Is your estate complex or very large?

  • YES → Consider:
    • Setting up trusts
    • Family investment companies
    • Professional tax planning advice

Final Step: Implementation

  1. Choose your strategies from above
  2. Update your will to reflect your plan
  3. Implement chosen strategies (gifts, trusts, insurance)
  4. Document everything
  5. Review annually and after major life events

Work Through This Flowchart

Use our calculator to implement this decision flowchart for your specific situation.

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