Passing on wealth is about more than inheritance tax. It involves balancing your own financial security with your wish to help loved ones, keeping important documents up to date and making things as straightforward as possible for your family when you die.
In previous insights, we have talked about planning for children and the importance of family conversations about money.
This month, we are focusing on inheritance and legacy planning through three insights:
- Passing Wealth On: Practical Considerations
- Why Pensions Still Matter for Estate Planning
- Helping the Next Generation Without Creating Dependence
There will naturally be some crossover between these articles, but together they explore an important part of financial planning.
As we start this series, one thing is certain: we cannot take our wealth with us when we die.
That might sound rather gloomy, but it raises an important question. What do we want our money to achieve, both during our lifetime and after we have gone?
For this first insight, we want to focus on three practical considerations: balancing retirement income and inheritance, reviewing wills and pension nominations, and making sure important financial information is recorded.
How do you balance retirement income and inheritance?
If you ask most parents whether they would like to leave something for their children, many would say yes. There is something natural about wanting to provide for the next generation.
However, retirement planning has changed.
For many people, pensions and investments are not simply savings that can eventually be passed on. They are the assets that need to provide an income throughout retirement, which could last 30 years or more.
This creates a difficult balancing act.
On one side is the desire to maintain financial independence and enjoy retirement. On the other is the wish to help children or grandchildren, either now or through inheritance.
The challenge is that we cannot know exactly how long we will live, what our future care needs might be or how investments will perform.
This is where financial planning becomes important.
By understanding your income needs, future expenditure and available assets, you can explore what might be affordable to give away without putting your own financial security at unnecessary risk.
In our third insight this month, we will consider helping the next generation during your lifetime.
For some families, setting money aside while still working may provide greater certainty than trying to establish what can be passed on during retirement.
However, everyone’s circumstances are different.
The important point is that your financial security should not be compromised simply because you want to leave an inheritance.
Why is it important to review your will and pension nominations?
Many of us will have several pension schemes during our working lives.
Perhaps we joined a workplace pension in our twenties and nominated someone to receive the benefits if we died. Twenty or thirty years later, our circumstances could look very different.
We may have married, divorced, had children or experienced the loss of someone close.
Yet how often do we review those nominations?
Most pension schemes allow you to complete an expression of wish form, identifying who you would like to receive any remaining pension benefits when you die.
It is important to understand that, in many schemes, the trustees or pension provider make the final decision about who receives the benefits. Nevertheless, keeping your wishes up to date can help them make that decision.
The same applies to your will.
A will written when you were single may no longer reflect your wishes after marriage, having children or changes in family circumstances. In England and Wales, getting married or entering a civil partnership will normally invalidate an existing will.
For those living together without being married or in a civil partnership, it is particularly important to understand how inheritance arrangements work.
Having an up-to-date will and pension nominations helps ensure that your wishes are understood.
There is also an important change approaching. From 6 April 2027, most unused pension funds and pension death benefits will fall within the scope of Inheritance Tax.
We will explore what this means, and why pensions remain important for estate planning, in our second insight.
Does your family know where everything is held?
We may not all have Swiss bank accounts, but most of us have financial arrangements spread across several providers.
These might include bank accounts, pensions, investments, life insurance, savings and other financial commitments.
Having a will is important, but a will does not necessarily tell your family where everything is held.
Imagine losing someone close to you and then having to work out where their pensions are, which banks they use or whether they have any life insurance.
At an already difficult time, this can create unnecessary stress.
At Manning Gee Investments, we have developed a booklet designed to help people record where their important financial information is held.
This could include details of financial providers, account references, insurance policies, important contacts and the location of key documents.
Digital accounts and passwords also need consideration. Rather than keeping sensitive passwords in an unsecured document, it is better to record where secure access arrangements and instructions can be found.
The aim is simple.
Helping your loved ones is not just about the wealth you leave behind. It is also about making things easier for them when they need that help most.
Why talking about inheritance matters
One message we regularly share is the importance of talking to loved ones as early as possible.
This does not mean everyone needs to know how much money you have or exactly what they might inherit.
Instead, conversations can begin with understanding the value of money, family expectations and what matters most.
As children grow older, those discussions may develop into conversations about financial independence, retirement, future care and inheritance.
These conversations can also prevent misunderstandings.
I recently read about a situation where an older person was spending their savings quite quickly. One suggestion was to purchase an annuity, which would provide a guaranteed income for life and help manage the risk of running out of money.
However, family members objected because they were concerned about the potential inheritance they might receive.
It highlights a difficult situation.
An annuity may provide financial security, but it can also mean there is less capital available to pass on. Equally, an annuity will not be right for everyone.
The important question is whose needs should come first.
Financial planning should begin with the individual, their goals and their financial security. The interests of future beneficiaries should not override those needs.
This is where inheritance planning becomes about much more than tax efficiency.
It is about family relationships, expectations and making decisions that reflect what is important to you.
Bringing it all together
Passing on wealth is not simply about how much money we leave behind.
It is about enjoying the life we have worked hard for, protecting those closest to us and making sure our wishes are understood.
There are three things worth asking yourself today.
Am I confident that my retirement income will support me before I consider giving money away?
Are my will and pension nominations up to date?
Would my loved ones know where to find everything if something happened to me?
These are simple questions, but they can make a significant difference.
At Manning Gee Investments, we believe financial planning starts with understanding what matters to you. That includes how you want to use your wealth during your lifetime and what you would like to pass on.
As independent financial planners based in Bristol, working with individuals and families across the UK, we can help you consider how retirement income and inheritance planning fit within your wider financial plan.
If anything in this insight, or the series we are sharing this month, resonates with you, we would welcome a conversation.
General disclaimer: We sourced the data from external providers. While we strive for maximum accuracy, we cannot guarantee the reliability of the data they supply. The author writes the introduction from their perspective, reflecting their views, which may not align with those of Manning Gee Investments. Anyone considering a product or service based on this blog should seek professional advice or conduct their own research before deciding. The author bears no liability for decisions made based on this blog. Investments can rise and fall in value, and the return at the end of the investment period is not guaranteed—you may receive less than you originally invested.
Update: November 2026
Related Links
Helping the Next Generation Without Creating Dependence
Why Pensions Still Matter for Estate Planning
Income in Retirement: Structure Over Guesswork